DCIT 7(1), MUMBAI V. PRECISION RUBBER INDUSTRIES LTD, MUMBAI

ITA 3710/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88079 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 29-01-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 24-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R N DSOUZA
• Assessee Lawyers: ASHOK PURI
• Keywords: Tax effect

Judgement Text

, , , , , ,, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI . . , ! '# , $ BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO.3710/MUM/2012 ASSESSMENT YEAR: 2006-07 DY. COMMISSIONER OF INCOME TAX-7(1), ROOM NO.622, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 / VS. M/S PRECISION RUBBER INDUSTRIES LTD. 201-A, POONAM CHAMBERS, DR. ANNIE BESANT ROAD, MUMBAI-400018 ( '# / REVENUE) ( ()* /ASSESSEE) P.A. NO.AAACP2272L '# + , + , + , + , / REVENUE BY SHRI R.N. DSOUZA - DR ()* + , + , + , + , / // / ASSESSEE BY): SHRI ASHOK PURI + *-! / / / / DATE OF HEARING : 29/01/2015 ./0 + *-! / DATE OF PRONOUNCEMENT : 29/01/2015 '1 '1 '1 '1 + *-! / DATE OF ORDER : 02/02/2015 '1 '1 '1 '1 / / / / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) : THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DATE D 15/03/2012 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS:- ON THE FACTS AND INTEREST THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON M/S PRECISION RUBBER INDUSTRIES LTD . 2 ACCOUNT OF UNUTILIZED MODVAT CREDIT BY HOLDING THAT THE IMPACT ON THE TRADING ACCOUNT IS NIL FOLLOWING THE INCLUSIVE OR EXCLUSIVE METHOD OF VALUATION OF CLOSING STOCK. ON THE FACTS AND INTEREST THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNUTILIZED MODVAT CREDIT WITHOUT APPRECI ATING THE DETAILED ILLUSTRATION GIVEN BY THE ASSESSING OFFICE R, SUBSTANTIATING THE ADJUSTMENT U/S 145A, AT PARA 5.3 OF THE ORDER U/S 143(3). 2. AT THE TIME OF HEARING, LD. DR, SHRI R.N.DSOUZA , ADVANCED HIS ARGUMENTS WHICH ARE IDENTICAL TO THE GROUND RAI SED. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE CONTEN DED THAT THE TAX EFFECT IN THE PRESENT APPEAL IS BELOW PRESCRIBE D MONETARY LIMIT. IT WAS FAIRLY AGREED BY THE LD. DR THAT THE TAX EFFECT IN THE PRESENT APPEAL IS RS.3,78,687/-, WHICH IS BELOW PRE SCRIBED MONETARY LIMIT. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. IN VIEW OF THE FACT THAT THE TAX EFFECT IN THE APPEAL IS BELOW PRESCRIBED MONETARY L IMIT AS CONTAINED IN CBDT INSTRUCTION NO.3/2011 DATED 09/02 /2011, FURTHER INSTRUCTION NO.5/2014(F NO.279/MISC./ 142/2 007-IT(PT) DATED 10/07/2014. THE CBDT REVISED THE MONETARY LIM IT FOR FILING THE APPEAL BEFORE VARIOUS AUTHORITIES/COURTS AND ADVISED/DIRECTED THE DEPARTMENT NOT TO FILE APPEAL IN THE CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE FOLLOWING MONETARY LIMITS:- SL. NO. APPEALS IN INCOME TAX MATTERS MONETARY LIMIT (IN R S.) 1. BEFORE APPELLATE TRIBUNAL 4,00,000/- 2. U/S 260 A BEFORE HIGH COURT 10,00,000/- 3. BEFORE SUPREME COURT 25,00,000/- M/S PRECISION RUBBER INDUSTRIES LTD . 3 AS PER THE AFORESAID INSTRUCTION, THE DEPARTMENT IS NOT TO FILE APPEAL BEFORE THE TRIBUNAL WHEREIN THE TAX EFF ECT IS LESS THAN RS.4,00,000/-, CONSEQUENTLY, CONSIDERING THE DECISI ON FROM THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF PI THWA ENGINEERING WORKS (276 ITR 519) (BOM ) , THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE, THEREFORE, DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 29/01/2015. '1 + ./0 2'3 29/01/2015 / + 9 SD/- (N.K.BILLAIYA) SD/- (JOGINDER SINGH) ! '# ! '# ! '# ! '# / ACCOUNTANT MEMBER '# '# '# '# / JUDICIAL MEMBER MUMBAI; 2' DATED : 02/02/201 5 F{X~{T? P.S/. .. '1 + :* ;0* '1 + :* ;0* '1 + :* ;0* '1 + :* ;0*/ COPY OF THE ORDER FORWARDED TO : 1. <= / THE APPELLANT 2. :><= / THE RESPONDENT. 3. ? ( ) / THE CIT, MUMBAI. 4. ? / CIT(A)- , MUMBAI 5. A9 :* , , / DR, ITAT, MUMBAI 6. 9B( C / GUARD FILE. '1 '1 '1 '1 / BY ORDER, >* :* //TRUE COPY// D DD D/ // /E ' E ' E ' E ' (DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI