ITO (E) 2(2), MUMBAI V. SHRI PRAYAGDHAM TRUST, MUMBAI

ITA 3832/MUM/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 2205 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 09-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 22-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RONAK G DOSHI
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, M UMBAI BEFORE SHRI A.K. GARODIA, AM ITA 3832/MUM/2015 & CO 131/MUM/15 ASSESSMENT YEAR: 2007-08 THE ITO (E)-2(2), ROOM NO. 502, 5 TH FLOOR, PIRAMAL CHAMBERS, LALBAUG PAREL, MUMBAI- 400012. / VS. SHRI. PRAYAGDHAN TRUST. 301-B DEV DHARSHAN, MAHIM, MUMBAI- 400016. ./ ./ PAN/GIR NO. AAATP0079L ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI. V.S. JADHAV / RESPONDENT BY : SHRI. RONAK G. DOSHI / DATE OF HEARING : 22/12/2015 !'# / DATE OF PRONOUNCEMENT : 22/12/2015 / O R D E R PER A. K. GARODIA, A. M : THIS APPEAL IS FILED BY THE REVENUE AND THE CROSS OBJECTION IS FILED BY THE ASSESSEE AND THESE ARE DIRECTED AGAINS T THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-7, MUMBAI (HER EINAFTER CALLED AS THE CIT(A) ) DT. 18/03/2015 FOR ASSESSMENT YEARS 2007-08. 2. AT THE VERY OUTSET, IT WAS SUBMITTED BY THE LD. AR OF THE ASSESSEE THAT IN THE PRESENT CASE, EVEN AFTER MAKING DISALLO WANCE BY THE AO IN RESPECT OF THE DEPRECIATION, ASSESSED INCOME IS NI L AND THEREFORE, THE TAX EFFECT IN THE PRESENT CASE IS BELOW THE SPECIFI ED LIMIT AS PER THE RECENT BOARD INSTRUCTIONS DT. 10/12/2015, AS PER WH ICH, IT IS SPECIFIED THAT THE REVENUE IS NOT SUPPOSED TO FILE ANY APPEAL BEFORE THE TRIBUNAL ITA 3832/MUM/2015 2 & CO 131/M UM/15 ASSESSMENT YEAR: 2007-08 WHERE THE TAX EFFECT IS BELOW RS. 10 LACS. THEREAFT ER, HE POINTED OUT THAT AS PER THESE INSTRUCTIONS DT.10/12/2015, EVEN THE PENDING APPEALS ARE ALSO COVERED BY THESE INSTRUCTIONS. 3. AT THE JUNCTURE, IT WAS POINTED OUT THAT IF THE APPEAL OF THE REVENUE GOES BY HOLDING THAT IT IS NOT MAINTAINABLE THEN CO OF THE ASSESSEE ALSO NOT SURVIVE. IN REPLY, THE LD. AR OF THE ASSES SEE AGREED TO THIS PROPOSITION. LD. DR OF THE REVENUE HAD NOTHING TO SAY AND HE COULD NOT SHOW THAT THE TAX EFFECT IN THE PRESENT CASE IS NOT BELOW RS. 10 LACS. 4. I HAVE CONSIDERED THE FACTS OF THE PRESENT CASE AS DISCUSSED ABOVE AND I FIND THAT IN VIEW OF THE RECENT BOARD INSTRUC TIONS DT. 10/12/2015, AN APPEAL OF THE REVENUE IS NOT MAINTAI NABLE BECAUSE OF LOW TAX EFFECT IF THE TAX EFFECT IS BELOW RS. 10 LA CS AND THE PRESENT APPEAL IS SUCH BECAUSE IN THE PRESENT CASE, TAX EFF ECT IS BELOW RS. 10 LACS AND AS A CONSEQUENCES, CO OF THE ASSESSEE ALSO GOES BECAUSE IN THE ABSENCE OF A VALID APPEAL OF THE REVENUE, CO OF THE ASSESSEE IS ALSO NOT MAINTAINABLE. ACCORDINGLY BOTH ARE DISMISSED AS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT. 5. IN THE RESULT, THE REVENUES APPEAL & CROSS OBJE CTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22ND DECEMBER , 2015 AFTER CONCLUSION OF HEARING ON 22/12/2015 SD/- (A.K. GARODIA) ( / ACCOUNTANT MEMBER) MUMBAI; ( DATED : 22.12.2015 ITA 3832/MUM/2015 3 & CO 131/M UM/15 ASSESSMENT YEAR: 2007-08 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ) ( ) / THE CIT(A) 4. ) / CIT - CONCERNED 5. ,-. //01 , 01# , / DR, ITAT, MUMBAI 6. .34 5 / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) !' #, / ITAT, MUMBAI PRAMILA