DCIT CIR 8(2), MUMBAI V. NISHIT PHARMA CHEM P. LTD, MUMBAI

ITA 3508/MUM/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8162 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-09-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 02-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAVAN KUMAR BEER LA
• Assessee Lawyers: A KSHAY NIVALKAR
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI . . , , BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER /AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO.3508/MUM/2011 (A.Y.2005-06) THE DY. CIT, CIR. 8(2), ROOM NO.216-A, AAYKAR BHAVAN, MK ROAD, MUMBAI. (APPELLANT ) VS. M/S. NISHIT PHARMA CHEM PVT. LTD., 2 ND FLOOR, SHIV ASHISH, A.K.ROAD, SAKINAKA, ANDHERI (EAST), MUMBAI 400 072 PAN:AABCN 4344E (RESPONDENT) APPELLANT BY : SHRI PAVAN KUMAR BEER LA RESPONDENT BY : SHRI A KSHAY NIVALKAR DATE OF HEARING : 30/09/2014 DATE OF PRONOUNCEMENT : 30 /09/2014 ORDER PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE REVENUE AND IT IS D IRECTED AGAINST THE ORDER PASSED BY LD. CIT(A)-17, MUMBAI DATED 31/12/2010 F OR ASSESSMENT YEAR 2005-06. 2. THE ONLY DELETION OF ADDITION WHICH IS AGITATED BY THE REVENUE IN THE PRESENT APPEAL IS A SUM OF RS.9,74,595/-, ON WHICH TAX EFF ECT IS MUCH LESS THAN RS. 4.00 LACS. ACCORDING TO THE LATEST INSTRUCTION ISSUED BY CBDT DATED 10/07/2014 UNDER SECTION 268A OF THE INCOME TAX ACT, 1961 (INS TRUCTION NO.5/2014 (F.NO.279/MISC.142/2007-ITJ(PT)] VIDE WHICH THE TAX EFFECT LIMIT FOR FILING THE APPEAL BEFORE THE TRIBUNAL WAS ENHANCED FROM RS.3.00 LACS TO RS.4.00 LACS. ITA NO.3508/MUM/2011 (A.Y.2005-06) 2 3. WE HAVE HEARD LD. D.R. ACCORDING TO FOLLOWIN G DECISIONS OF HONBLE JURISDICTIONAL HIGH COURT, SUCH NOTIFICATIONS ISSUE D UNDER SECTION 268A WOULD BE APPLICABLE EVEN TO THE APPEALS FILED BEFORE ISSUE OF THE NOTIFICATION IF THE LIMIT IS ENHANCED: 1. IN THE CASE OF CIT VS. SMT. VIJAYA KAVEKAR (201 3 30 TAXMANN.COM 412) IT WAS HELD AS UNDER: SECTION 260A, READ WITH SECTION 268A, OF THE INCOME -TAX ACT, 1961 - HIGH COURT - APPEALS TO - TAX EFFECT - WHETHER INSTRUCTI ON NO. 3 OF 2011, DATED 9- 2-2011, SPECIFYING MONETARY LIMIT OF RS. 10 LAKHS F OR MAINTAINABILITY OF APPEAL BEFORE HIGH COURT IS APPLICABLE ON PENDING A PPEALS AS WELL - HELD, YES - WHETHER, THEREFORE, WHERE TAX EFFECT IN REVEN UES APPEALS WAS LESS THAN RS. 10 LAKHS WHICH WAS FILED EVEN PRIOR TO ISS UE OF INSTRUCTION DATED 9-2-2011, SAME WAS TO BE DISMISSED BEING NON-MAINTA INABLE - HELD, YES [IN FAVOUR OF ASSESSEE ] 2. IN THE CASE OF CIT VS. MADHUKAR IMANDAR (2009 1 85 TAXMAN 101] IT WAS HELD AS UNDER: SECTION 268A, READ WITH SECTION 119, OF THE INCOME- TAX ACT, 1961 - APPEAL OR APPLICATION FOR REFERENCE - FILING OF, BY INCOME -TAX AUTHORITY - WHETHER CIRCULAR/INCOME-TAX INSTRUCTION NO. 5 OF 2008, DATE D 15-5-2008 ISSUED BY CBDT DIRECTING INCOME-TAX AUTHORITIES NOT TO FILE A PPEALS IF TAX EFFECT IS LESS THAN RS. 4 LAKHS WOULD BE APPLICABLE TO CASES PENDI NG BEFORE HIGH COURT AS ON 15-5-2008 EITHER FOR ADMISSION OR FOR FINAL D ISPOSAL, EVEN THOUGH SAID APPEALS AND/OR PETITIONS WERE FILED BEFORE HIG H COURT PRIOR TO 15-5- 2008 - HELD, YES 4. IN VIEW OF THE ABOVE DISCUSSION WE DISMISS THE APPEAL FILED BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT AS PER AFOREMENTIONED IN STRUCTION ISSUED BY CBDT ORDER PRONOUNCED IN THE OPEN COURT ON 30/09/2 014 ! ' #$ % &'( 30/09/2014 ' ) SD/- SD/- ( /SANJAY ARORA ) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; &' DATED 30/09/2014 ITA NO.3508/MUM/2011 (A.Y.2005-06) 3 ! ! ! ! ' '' ' *+, *+, *+, *+, -,$+ -,$+ -,$+ -,$+ / COPY OF THE ORDER FORWARDED TO : 1. ./ / THE APPELLANT 2. *0./ / THE RESPONDENT. 3. 1 ( ) / THE CIT(A)- 4. 1 / CIT 5. ,2) *+' , , / DR, ITAT, MUMBAI 6. )3 4 / GUARD FILE. !' !' !' !' / BY ORDER, 0,+ *+ //TRUE COPY// 5 55 5 / 6 6 6 6 (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . ' . ./ VM , SR. PS