THE ACIT, CIRCLE - 1, RAJAHMUNDRY, Rajahmundry V. Smt Tummalacheruvu Nagaratnam, Rajahmundry

ITA 412/VIZ/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0178 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 01-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 05-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Keywords: Tax effect

Judgement Text

ITA NO.412/VISAG/2012 TUMMALACHERUVU NAGARATNAM, RAJAHMUNDRY 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . . . . , . . . . , $ $ $ $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.412/VIZAG/2012 ( / ASSESSMENT YEAR : 2008-09 ) ACIT CIRCLE - 1 RAJAHMUNDRY VS. TUMMALACHERUVU NAGARATNAM RAJAHMUNDRY [ P AN: AARPT 4319A] ( & & & & / APPELLANT) ( '(& '(& '(& '(& / RESPONDENT ) & ) / APPELLANT BY : SHRI M.K. SETHI, DR '(& ) / RESPONDENT BY : SHRI G.V.N. HARI, AR ) - / DATE OF HEARING : 01.12.2015 ) - / DATE OF PRONOUNCEMENT : 04.12.2015 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) VIS AKHAPATNAM DATED 27.08.2012 FOR THE ASSESSMENT YEAR 2008-09. ITA NO.412/VISAG/2012 TUMMALACHERUVU NAGARATNAM, RAJAHMUNDRY 2 2. WHEN THIS APPEAL IS TAKEN UP FOR HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS.4 LAKHS AND THIS APPEAL IS NOT MAINTAINABL E. 3. ON THE OTHER HAND, THE LD. D.R. HAS NOT RAISED A NY OBJECTION. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORDS. AT THE OUTSET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE I S LESS THAN THE MONETARY LIMIT OF RS.4 LAKHS PRESCRIBED BY THE CBDT FOR FILING THE APPEALS BEFORE THE TRIBUNAL, AND THE SAME, THEREFOR E, IS NOT MAINTAINABLE. ALTHOUGH THE LEARNED DEPARTMENTAL REP RESENTATIVE HAS NOT DISPUTED THE FACT THAT THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS LESS THAN RS.4 LAKHS, HE HAS CONTENDED T HAT THE REVISED MONETARY LIMIT OF RS.4 LAKHS FIXED BY THE CBDT VIDE INSTRUCTION NO.5 OF 2014 ISSUED ON 10 TH JULY, 2014 FOR FILING OF THE DEPARTMENTAL APPEALS BEFORE THE TRIBUNAL IS APPLICABLE ONLY TO THE APPEA LS FILED ON OR AFTER 10 TH JULY,2014. HE HAS CONTENDED THAT SINCE THE PRESE NT APPEAL WAS FILED BY THE DEPARTMENT ON 27.8.2012, THE REVISED MONETAR Y LIMIT OF RS. 4 LAKHS IS NOT APPLICABLE TO THE SAME. WE HAVE CONSIDE RED SIMILAR CONTENTIONS OF THE REVENUE IN THE CASE OF ITO V/S. SRI SANTHOSHI TRANSPORT, YELLANDU (KHAMMAM DISTRICT) IN ITA NO.61 5/HYD/2013 FOR ASSESSMENT YEAR 2006-07, AND DECIDED THE ISSUE RELA TING TO THE ITA NO.412/VISAG/2012 TUMMALACHERUVU NAGARATNAM, RAJAHMUNDRY 3 APPLICABILITY OF THE CBDT INSTRUCTION NO.5 OF 2014 ISSUED ON 10 TH JULY, 2014 IN RESPECT OF APPEALS FILED PRIOR TO 10.7.2014 , AGAINST THE DEPARTMENT VIDE PARA 2 OF OUR ORDER DATED 23.2.2015 , WHICH READS AS FOLLOWS- 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORDS. AS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET, TH E TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS LESS THAN THE MONETARY LIMIT OF RS.4 LAKHS PRESCRIBED BY THE CBDT FOR FILI NG THE APPEALS BEFORE THE TRIBUNAL, AND THE SAME, THEREFORE, IS NO T MAINTAINABLE. ALTHOUGH THE LEARNED DEPARTMENTAL REPRESENTATIVE HA S NOT DISPUTED THE FACT THAT THE TAX EFFECT INVOLVED IN T HIS APPEAL OF THE REVENUE IS LESS THAN RS.4 LAKHS, HE HAS CONTENDED T HAT THE REVISED MONETARY LIMIT OF RS.4 LAKHS FIXED BY THE CBDT VIDE INSTRUCTION NO.5 OF 2014 ISSUED ON 10 TH JULY, 2014 FOR FILING OF THE DEPARTMENTAL APPEALS BEFORE THE TRIBUNAL IS APPLICA BLE ONLY TO THE APPEALS FILED ON OR AFTER 10 TH JULY,2014. HE HAS CONTENDED THAT SINCE THE PRESENT APPEAL WAS FILED BY THE DEPARTMEN T ON 4.7.2013, THE REVISED MONETARY LIMIT OF RS. 4 LAKHS IS NOT AP PLICABLE TO THE SAME. IN THIS REGARD, THE LEARNED COUNSEL FOR THE A SSESSEE HAS RELIED ON THE DECISION OF THE KOLKATA BENCH OF THE TRIBUNAL IN THE CASE OF ITO, WARD 3, MURSHIDABAD V/S. NABIKCHUDDIN SK. RENDERED VIDE ITS ORDER DATED 12.8.2014 PASSED IN ITA NO.340 /KOL/2012, WHEREIN A SIMILAR ARGUMENT RAISED ON BEHALF OF THE DEPARTMENT WAS REJECTED BY THE TRIBUNAL RELYING INTER ALIA ON THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF SURESHCH ADNRA DURGA PRASAD KHATOD(HUF) (253 CTR 492)(GUJ), WHEREIN IT WAS HELD, KEEPING IN VIEW THE MAIN OBJECTIVE OF THE INSTRUCTIO N ISSUED BY THE CBDT TO REDUCE THE PENDING LITIGATION WHERE THE TAX EFFECT IS CONSIDERABLY LOW OR SMALL, THAT THE SAME WOULD APPL Y TO PENDING APPEALS ALSO. KEEPING IN VIEW THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF NABIKCHUDDIN SK.(SUP RA), WE HOLD THAT THE PRESENT APPEAL FILED BY THE DEPARTMENT INV OLVING A TAX EFFECT OF LESS THAN THE MONETARY LIMIT OF RS.4 LAKH S FIXED BY THE CBDT IN ITS INSTRUCTION NO.5 OF 2014 DATED 10 TH JULY, 2014 FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL, I S NOT MAINTAINABLE. THE SAME IS ACCORDINGLY DISMISSED. KEEPING IN VIEW THE CONSISTENT VIEW TAKEN BY THE CO ORDINATE BENCHES OF THIS TRIBUNAL, WE HOLD THAT THE PRESENT APPEAL FILE D BY THE DEPARTMENT ITA NO.412/VISAG/2012 TUMMALACHERUVU NAGARATNAM, RAJAHMUNDRY 4 INVOLVING A TAX EFFECT OF LESS THAN THE MONETARY LI MIT OF RS.4 LAKHS FIXED BY THE CBDT IN ITS INSTRUCTION NO.5 OF 2014 DATED 1 0 TH JULY, 2014 FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIB UNAL, IS NOT MAINTAINABLE. THE SAME IS ACCORDINGLY DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMIS SED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 4 TH DEC15. SD/- SD/- ( . . . . ) ( . ) ( G. MANJUNATHA) ( (( ( V. DURGA RAO ) )) ) / // / ACCOUNTANT MEMBER / // / JUDICIAL MEMBER /VISAKHAPATNAM: 3 / DATED : 04.12.2015 VG/SPS ) ' 4 / COPY OF THE ORDER FORWARDED TO :- 1. & / THE APPELLANT THE ACIT, CIRCLE-1, RAJAHMUNDRY 2. '(& / THE RESPONDENT SMT. TUMMALACHERUVU NAGARATNAM, PROPX: M/S. AKSH ARASRI VIDYANIKETAN, TILAK ROAD, RAJAHMUNDRY 3. 5 / THE CIT, VISAKHAPATNAM 4. 5 () / THE CIT(A), VISAKHAPATNAM 5. ' , , / // / DR, ITAT, VISAKHAPATNAM 6 . . . . / GUARD FILE / BY ORDER // TRUE COPY // 9: ( SR.PRIVATE SECRETARY ) , / // / ITAT, VISAKHAPATNAM