ACIT RG 11(1), MUMBAI V. RED CHILLIES ENTERTAINMENT P. LTD, MUMBAI

ITA 4194/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 49236 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 24-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C G K NAIR
• Assessee Lawyers: KETAN PANCHMIA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI R.S.PADVEKAR, JM ITA NO.4194/MUM/2010 : ASST.YEAR 2007-2008 THE ASSTT.COMMISSIONER OF INCOME-TAX RANGE 11(1) MUMBAI. VS. M/S.RED CHELLIES ENTERTAINMENT PVT.LTD. DEEPVAN BUILDING, ANAND VIHAR SOCIETY 20 TH ROAD, KHAR (WEST) MUMBAI 400 052. PA NO.AACCR2518P. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C.G.K.NAIR RESPONDENT BY : SHRI KETAN PANCHMIA O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 27.03.2010 IN RELATI ON TO THE ASSESSMENT YEAR 2007-2008. 2. AT THE VERY OUTSET THE LEARNED COUN SEL FOR THE ASSESSEE PLACED ON RECORD A STATEMENT SHOWING THE COMPUTATION OF TAX EF FECT AND CONTENDED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS RS.2,46,054, WHIC H IS BELOW THE PRESCRIBED LIMIT OF RS.3 LAKHS FOR FILING THE APPEAL BEFORE THE TRIBUNAL BY THE REVENUE AS PER THE CBDT CIRCULAR NO.3 OF 2011. IT WAS ALSO ARGUED TH AT THE CIRCULAR OF 2011 SHALL ALSO APPLY TO THE PENDING APPEALS, AS HAS BEEN HELD BY THE MUMBAI BENCH OF THE TRIBUNAL IN SEVERAL CASES. COPIES OF TWO ORDERS WERE PLACED ON RECORD. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE COMPUTATION OF TAX EFFECT MADE BY THE ASSESSE E IS CORRECT. 3. AFTER HEARING BOTH THE PARTIES, WE FI ND THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.3 LAKHS AS PER THE LIMIT PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO.3 OF 2011 FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL. IN ITA NO.4194/MUM/2010 M/S.RED CHELLIES ENTERTAINMENT PRIVATE LIMITED. 2 SUCH A SITUATION THE APPEAL FILED IN CONTRA VENTION OF SUCH LIMIT CANNOT BE SUSTAINED. THIS VIEW IS DULY SUPPORTED BY THE DE CISION IN THE CASE OF ACIT VS. SATISH CHANDRA, 10 SOT 383. SIMILA R VIEW HAS BEEN TAKEN BY THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO. 254 ITR 565, WHEREIN IT HAS BEEN HELD THAT THE TAX EFFECT INVOLVED IN THE APPEAL FI LED BY THE REVENUE BE ING LESS THAN THE MONETARY LIMIT AS PRESCRIBED IN BOARD CIRCULAR, THE SAME IS NOT MAINTAINABLE. 4. NOW COMING TO THE QUESTION OF APPLICABILITY OF CI RCULAR OF 2011 AS APPLICABLE TO THE APPEALS FILED EARLIER, IT IS SEEN THAT THE MUMBAI BENCH OF THE TRIBUNAL IN ITO VS. LAXMI JEWEL PVT. LTD., VIDE ITS ORDER DATED 12.04.2011 IN ITA NO. 2165/M/2010 HAS HELD THAT THE APPEALS FILE D BY THE REVENUE PRIOR TO THE CIRCULAR SHALL ALSO BE GOVERNED THE MONETARY LIMIT OF THIS CIRCULAR. SIMILAR VIEW HAS BEEN REITERATED BY THE MUMBAI BENC H OF THE TRIBUNAL VIDE ORDE R DATED 29.04.2011 IN ITO VS. INDIA SAFETY VAULTS LTD. IN ITA NO. 648-651/M/2010. RESPECTFULLY FOLLOWING THE PRECEDENTS, WE HOLD THAT THE APPEAL FILED BY THE RE VENUE CANNOT BE TAKEN UP FOR DECISION ON MERITS AS THE TAX EFF ECT IN THIS CASE IS ADMITTED LY LESS THAN RS. 3.00 LACS. WE, THEREFORE, DISMISS THE APPEAL FILE D BY THE REVENUE AS NOT MAINTAINABLE. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN TH E OPEN COURT ON THIS 30 TH DAY OF JUNE, 2011. SD/- SD/- ( R.S.PADVEKAR ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 30 TH JUNE, 2011. DEVDAS* ITA NO.4194/MUM/2010 M/S.RED CHELLIES ENTERTAINMENT PRIVATE LIMITED. 3 COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XI, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.