ACIT, THANE V. SEVAK PHARMA P. LTD, THANE

ITA 4369/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56007 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 03-11-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 28-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K NAYAK
• Keywords: Additional evidence; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, A.M. AND SHRI V. DU RGA RAO, J.M. ITA NO. 4369/MUM/2010 ASSESSMENT YEAR: 2004-05 ASSTT. COMMISSIONER OF INCOME-TAX, APPELL ANT PALGHAR CIRCLE, PALGHAR. VS. M/S SEVAK PHARMA PVT. LTD., RESPONDENT PLOT NO. 29, BALSAR ROAD, PALGHAR, DIST. THANE. APPELLANT BY : MR. A.K. NAYAK RESPONDENT BY : NONE. ORDER PER V. DURGA RAO, J.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF CIT(A)-II, THANE, PASSED ON 08/02/2010 FOR THE ASSE SSMENT YEAR 2004-05 WHEREIN THE REVENUE HAS RAISED THE FOLLOWIN G GROUNDS OF APPEAL:- I. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN THE LAW, THE LD. CIT(A)-II, THANE HAS ERRED IN A LLOWING THE AMOUNT OF SUBSIDY OF RS. 7,82,000/- AS CAPITAL RECE IPT WHICH WAS TREATED BY THE AO AS REVENUE RECEIPTS ON THE BASIS OF ADDITIONAL EVIDENCE FILED BY THE ASSESSEE WITHOUT REFERRING TH E MATTER TO THE AO CALLING FOR REMAND REPORT AS REQUIRED UNDER RULE 46A. 2. THE APPELLANT PRAYS THAT THE ORDER PASSED BY THE LD. CIT(A) MAY BE VACATED AND THAT OF THE AO BE RESTORED.. 2. NONE APPEARED ON BEHALF OF THE RESPONDENT-ASSESS EE AT THE TIME OF HEARING BEFORE US. WE HAVE HEARD THE ARGUMENTS O F THE LEARNED DR AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. A S NOTED FROM THE GROUNDS RAISED BY THE REVENUE, THE TAX EFFECT INVOL VED IN THIS APPEAL FILED BY THE REVENUE IS LESS THAN RS. 3 LAKHS AND T HIS POSITION HAS NOT ITA NO. 4369/M/2010 M/S SEVAK PHARMA PVT. LTD. 2 BEEN DISPUTED EVEN BY THE LEARNED DR. AS PER THE CB DT INSTRUCTION NO. 3 OF 2011 ISSUED ON 09/02/2011, THE MONETARY LI MIT FOR FILING OF AN APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL HAS BEEN REVISED TO RS. 3 LAKHS. AS DECIDED BY THE CBDT, APPEALS SHALL NOT BE FILED BY THE DEPARTMENT IN CASES WHERE TAX EFFECT DOES NOT EXCEE D RS. 3 LAKHS. IN THE CASE OF CIT VS. MADHUKAR INAMDAR (HUF) 318 ITR 149, THE HONBLE BOMBAY HIGH COURT HAS HELD THAT CBDT INSTRUCTION FI XING ANY MONETARY LIMIT FOR FILING THE APPEAL WOULD APPLY EV EN FOR THE PENDING CASES. KEEPING IN VIEW THE SAID DECISION OF HONBLE JURISDICTIONAL HIGH COURT AND THE BOARD INSTRUCTION NO. 3 OF 2011 DATED 09/02/2011, WE HOLD THAT THE PRESENT APPEAL FILED BY THE DEPARTMEN T INVOLVING TAX EFFECT OF LESS THAN 3 LAKHS IS NOT MAINTAINABLE AND THE SAME, IS, THEREFORE, DISMISSED. 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF NOVEMBER, 2011. SD/- SD/- (J. SUDHAKAR REDDY) (V. DU RGA RAO) ACCOUNTANT MEMBER JUDI CIAL MEMBER MUMBAI, DATED: 18 TH NOVEMBER, 2011 KV ITA NO. 4369/M/2010 M/S SEVAK PHARMA PVT. LTD. 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE, G BENCH, I.T .A.T., MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR, I.T.A.T., MUMBAI.