Dy.CIT, Circle-16(2), Hyderabad V. M/s Meena Jewels and Pearls, Hyderabad

ITA 297/HYD/2014

• Counselvise Citation: 29722514 RSA 2014
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-03-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 25-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SMT.ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 29 7/HYD/14 : ASSESSMENT YEAR 200 8 - 0 9 DY. COMMISSIONER OF INCOME - TAX CIRCLE 16(2), HYDERABAD V/S. M/S. MEENA J EWELS & PEARLS , HYDERABAD (PAN AA M F M 8114 F ) (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI RAJAT MITRA DR RESPONDENT BY : SHRI P.MURALI MOHAN RAO DATE OF HEARING 9 .3.2015 DATE OF PRONOUNCEMENT 9.3.2015 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : TH IS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) V, HYDERABAD DATED 31.10.2013, WHEREBY HE DELETED THE ADDITION OF RS.9,83,085 MADE BY THE ASSESSING OFFICER BY ESTIMATING THE GROSS PROFIT OF THE ASSESSEE ON GOLD AND ORNAMENTS AT 0.85% AGAINST 0.77% SHOWN BY THE ASSESSEE. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORDS. AS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS LESS THAN THE MONETARY LIMIT OF RS.4 LAKHS PRESCRIBED BY THE CBDT FOR FILING THE APPEALS I TA NO. 297 /H YD/20 14 M/S. MEENA JEWELS & PEARLS, HYDERABAD 2 BEFORE THE TRIBUNAL, AND THE SAME, THEREFORE, IS NOT MAINTAINABLE. ALTHOUGH THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NOT DISPUTED THE FACT THAT THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENU E IS LESS THAN RS.4 LAKHS, HE HAS CONTENDED THAT THE REVISED MONETARY LIMIT OF RS.4 LAKHS FIXED BY THE CBDT VIDE INSTRUCTION NO.5 OF 2014 ISSUED ON 10 TH JULY, 2014 FOR FILING OF THE DEPARTMENTAL APPEALS BEFORE THE TRIBUNAL IS APPLICABLE ONLY TO THE APPEAL S FILED ON OR AFTER 10 TH JULY,2014. HE HAS CONTENDED THAT SINCE THE PRESENT APPEAL WAS FILED BY THE DEPARTMENT ON 25 . 2 .201 4 , THE REVISED MONETARY LIMIT OF RS. 4 LAKHS IS NOT APPLICABLE TO THE SAME. IN THIS REGARD, THE LEARNED COUNSEL FOR THE ASSESSEE HAS RELIED ON THE DECISION OF THE KOLKATA BENCH OF THE TRIBUNAL IN THE CASE OF ITO, WARD 3, MURSHIDABAD V/S. NABIKCHUDDIN SK. R ENDERED VIDE ITS ORDER DATED 12.8.2014 PASSED IN ITA NO.340/KOL/2012, WHEREIN A SIMILAR ARGUMENT RAISED ON BEHALF OF THE DEPARTMENT WAS REJECTED BY THE TRIBUNAL RELYING INTER ALIA ON THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF SURESHCHA DNRA DURGA PRASAD KHATOD(HUF) (253 CTR 492)(GUJ), WHEREIN IT WAS HELD, KEEPING IN VIEW THE MAIN OBJECTIVE OF THE INSTRUCTION ISSUED BY THE CBDT TO REDUCE THE PENDING LITIGATION WHERE THE TAX EFFECT IS CONSIDERABLY LOW OR SMALL, THAT THE SAME WOULD APPLY T O PENDING APPEALS ALSO. KEEPING IN VIEW THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF NABIKCHUDDIN SK.(SUPRA), WE HOLD THAT THE PRESENT APPEAL FILED BY THE DEPARTMENT INVOLVING A TAX EFFECT OF LESS THAN THE MONETARY LIMIT OF RS.4 LAK HS FIXED BY THE CBDT IN ITS INSTRUCTION NO.5 OF 2014 DATED 10 TH JULY, 2014 FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL, IS NOT MAINTAINABLE. THE SAME IS ACCORDINGLY DISMISSED. I TA NO. 297 /H YD/20 14 M/S. MEENA JEWELS & PEARLS, HYDERABAD 3 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF HEARING ON THE APPEAL ON 9 TH MARCH, 2015. SD/ - SD/ - ( ASHA VIJAYARAGHAVAN ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER D T/ - 9 TH MARCH, 201 5 COPY FORWARDED TO: 1. M/S. MEENA JEWELS & PEARLS, 5 - 9 - 58/1 - 15 BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD 2 . DY. COMMISSIONER OF INCOME - TAX CIRCLE 16(2), HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) V HYDERABAD 4. COMMISSIONER OF INCOME - TAX IV, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S