DCIT-6, Kanpur V. M/S A.R.Polymers p Ltd, Kanpur

ITA 312/LKW/2011

• Counselvise Citation: 31223714 RSA 2011
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 26-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGDISH; P K B AJAJ
• Keywords: Tax effect
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, B - BENCH, LUCKNOW. BEFORE SHRI H.L.KARWA, HON'BLE VICE PRESIDENT AND SHRI N.K.SAINI, ACCOUNTANT MEMBER I.T.A.NO.312(LKW.)/2011 A.Y.: 2005-06 THE DY.CIT-6, VS. M/S.A.R.POLYMERS PVT. LTD., KANPUR. 26/52,BIRHANA ROAD, KANPUR. PAN AABCA2263P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI JAGDISH, CIT(DR) & SHRI P.K.BAJAJ, SR.D.R. RESPONDENT BY : SHRI AMIT SHUKLA, ADVOCATE DATE OF HEARING : 11.8.2011 DATE OF PRONOUNCEMENT : 11.8.2011 O R D E R PER H.L.KARWA, VICE PRESIDENT THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD.CIT(A)-II, KANPUR DATED 16.2.2011 RELATING TO THE ASSESSMENT YEAR 2005- 06. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLOWING GROUNDS : 1. THAT THE LD COMMISSIONER OF INCOME TAX (A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE A.O. TO ALLOW THE CLAIM OF 2 DEDUCTION U/S 80 IB AGAINST THE INCOME DERIVED FROM NEW TENT UNIT WHICH HAS COMMENCED ITS PRODUCTION AFTER 31.03.2002. 2. THAT THE ORDER OF LD. COMMISSIONER OF INCOME TAX (A)-I, KANPUR BEING ERRONEOUS IN LAW AND ON THE FACTS DESERVES TO BE VACATED AND THAT THE ORDER OF ASSESSING OFFICER BE RESTORED. 3. THAT THE APPELLANT CRAVES LEAVE TO MODIFY ANY OF THE GROUNDS OF APPEAL GIVEN ABOVE AND/OR ADD ANY FRESH GROUND AS AND WHEN IT IS CONSIDERED NECESSARY TO DO SO. 3. DURING THE COURSE OF HEARING, SHRI AMIT SHUKLA, ADVOCATE, LD.COUNSEL FOR THE ASSESSEE, AT THE VERY OUTSET, STATED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.3 LACS AND, THEREFORE, THE DEPARTMENT OUGHT NOT TO HAVE FILED THE APPEAL IN VIEW OF THE BOARDS CIRCULAR ISSUED BY THE C.B.D.T. 4. AFTER HEARING THE LD. REPRESENTATIVES OF BOTH THE PARTIES AND GOING THROUGH THE MATERIAL ON RECORD, WE FIND THAT IN REVENUES APPEAL TAX EFFECT IS LESS THAN RS.3 LAKHS AND ADMITTEDLY THE APPEAL WAS FILED ON 26.5.2011. IT IS NOTICED THAT THE C.B.D.T. HAS ISSUED INSTRUCTION NO.3 OF 2011 DATED 9.2.2011, BY WHICH THE C.B.D.T. HAS REVISED THE MONETARY LIMIT TO RS.3 LAKHS FOR FILING THE APPEALS BEFORE THE TRIBUNAL. KEEPING IN VIEW THE C.B.D.T. INSTRUCTION NO.3 OF 2011 DATED 9.2.2011, WE ARE OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE FILED THIS APPEAL BEFORE THE TRIBUNAL AFTER THE DATE OF ISSUANCE OF THE AFORESAID INSTRUCTION. THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF CIT V. CONCORD PHARMACEUTICALS (2008) 220 CTR GUJARAT 117 HAS UPHELD THE ORDERS OF I.T.A.T. AHMEDABAD BENCHES DISMISSING THE APPEALS OF THE REVENUE ON THE GROUND THAT TAX EFFECT WAS LESS THAN THE LIMIT PRESCRIBED BY C.B.D.T. IN ITS CIRCULARS ISSUED FROM TIME TO TIME. 3 5. IN VIEW OF THE ABOVE, WITHOUT GOING INTO THE MERITS OF THE CASE, WE DISMISS THE APPEAL FILED BY THE REVENUE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.8.2011. SD. SD. (N.K.SAINI) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT AUGUST 11TH ,2011. COPY TO THE : 1. APPELLANT 2. RESPONDENT 3. CIT(A) (4) CIT 5.DR. A.R.,ITAT, LUCKNOW. SRIVASTAVA.