DCIT 8(3), MUMBAI V. RUBY MACONS LTD, MUMBAI

ITA 4106/MUM/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1766 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 30-03-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 09-06-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D: MUMBAI BEFORE SHRI D.MANMOHAN, HONBLE VICE PRESIDENT AND SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER ITA NO.4106/MUM/2008 (ASSESSMENT YEAR 2005-06) DCIT, ROOM NO.204, 2 ND FLOOR, AAYKAR BHAVAN, M K ROAD, MUMBAI 400 020 VS M/S RUBY MACONS LTD, 203/204, ANGELINA APARTMENTS, SAROJINI ROAD, VILEPARLE (WEST), MUMBAI 400 056 PAN AAACR 1939 A (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI DURGESH SUMROTT FOR RESPONDENT : SHRI HIRO RAI ORDER PER D.MANMOHAN, V.P. 1. ONLY GROUND RAISED BY THE REVENUE READS AS UNDE R: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) ERRED IN ALLOWING CLAIM OF DEDUCTIO N U/S 80IB(4) OF THE INCOME TAX ACT IN RESPECT OF JOB WORK CHARGE S OF RS 18,10,000/- EVEN THOUGH THE ASSESSEE HAD NOT DERIVE D THIS INCOME FROM BUSINESS OF THE UNDERTAKING. 2. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE, APPEARING ON BEHALF OF THE ASSESSEE, FURNISHED A ST ATEMENT TO SHOW THAT THE REVENUE EFFECT IS LESS THAN RS 2 LAKHS AND HENC E REVENUE IS DEBARRED FROM PREFERRING AN APPEAL TO THE APPELLATE TRIBUNAL , IN THE LIGHT OF THE INSTRUCTIONS ISSUED BY THE CBDT (INSTRUCTION NO.5 D ATED 15.5.2008). PARA 5 OF THE INSTRUCTIONS READS AS UNDER:- 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES IN THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPE AL SHALL ITA 4106/M/2008 M/S RUBY MACONS LTD 2 BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEAR S IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EX CEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHAL L BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN OTHER WORDS, HENCEFORTH, APPEALS WILL BE FILED ONLY WITH REFERENCE TO THE TAX EFFECT IN THE RELEVANT ASSESSM ENT YEAR. HOWEVER, IN CASE OF A COMPOSITE ORDER OF ANY HIGH C OURT OR APPELLATE AUTHORITY, WHICH INVOLVES MORE THAN ONE Y EAR, APPEAL SHALL BE FILED IN RESPECT OF ALL ASSESSMENT YEARS E VEN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S), IF IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEEDS THE MONETARY LIMIT PRESC RIBED. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NOT DISPUTED THE WORKING OF THE TAX EFFECT. UNDER THESE CIRCUMS TANCES, IN THE LIGHT OF THE INSTRUCTIONS ISSUED BY THE CBDT, WHICH ARE BIND ING ON THE REVENUE, APPEAL FILED BY THE REVENUE IS NOT ADMITTED SINCE R EVENUE EFFECT DID NOT EXCEED MONETARY LIMITS STATED IN THE CIRCULAR. 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31-05-2010. SD/- SD/- (RAJENDRA SINGH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATE 1 ST JUNE, 2010 . COPY TO 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (A)-XXIX, MUMBAI. 4. THE CIT, MUMBAI. 5. DR D BENCH 6. GUARD FILE. *CHAVAN BY ORDER / / TRUE COPY / / ASST. REGISTRAR, ITAT, MUMBAI BENCHES MUMBAI ITA 4106/M/2008 M/S RUBY MACONS LTD 3 SNO DATE INITIALS 1 DRAFT DICTATED ON 31-05-2010 SR.P.S. 2. DRAFT PLACED BEFORE AUTHOR 1-06-2010 SR.P.S. 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1-06-2010 A.M. 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 1-06- 2010 A.M 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.P.S. 6. KEPT FOR PRONOUNCEMENT ON SR.P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S. 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER