The ACIT, Circle-5(1), Visakhapatnam V. Sri Panga Malakodaiah, Visakhapatnam

ITA 438/VIZ/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2837 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 07-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Assessee Lawyers: C V S MURTHY
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.438/VIZAG/2009 ASSESSMENT YEAR : 2002-03 THE ACIT, CIRCLE-5(1), VISAKHAPATNAM SRI PANGA MALAKONDAIAH, VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AGNPP8760B APPELLANT BY: SHRI G.S.S. GOPINATH, DR RESPONDENT BY: SHRI C.V.S. MURTHY, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 17.06.2009 PASSED BY THE CIT (A), VISAKHAPATNAM, AN D IT PERTAINS TO THE ASSESSMENT YEAR 2002-03. 2. BOTH THE PARTIES HAVE AGREED THAT THOUGH IN THE GROUND RAISED BY THE REVENUE, THE PENALTY AMOUNT IS MENTIONED AS RS.4.00 LAKHS, THE ACTUAL AMOUNT IN DISPUTE IS ONLY RS.2.00 LAKHS. HENCE THE TAX EFFECT IN THIS CASE DOES NOT EXCEED RS.2,00,000/- AND AS SUCH THIS APPE AL IS LIABLE TO BE DISMISSED IN VIEW OF JUDGEMENT OF THE JURISDICTIONA L HIGH COURT IN THE CASE OF C.I.T. VS A. RAJENDRA PRASAD (299 ITR 227) . IN THE SAID DECISION, HONBLE COURT HAS HELD THAT THE CBDT INSTRUCTIONS FIXING MO NETARY LIMITS FOR FILING APPEALS ARE STATUTORY IN NATURE AS THEY WERE ISSUED BY THE CBDT IN EXERCISE OF POWERS UNDER SECTION 119 OF THE INCOME TAX ACT A ND THE REVENUE HAS TO NECESSARILY FOLLOW THEM AND IF A CASE FALLS UNDER O NE OF THE EXCEPTIONS PROVIDED IN THE CIRCULARS, A SPECIFIC GROUND SHOULD BE RAISED IN THAT REGARD. ADMITTEDLY, THE REVENUE HAS NOT RAISED A SPECIFIC G ROUND TO SHOW THAT THE CASE FALLS WITHIN THE EXCEPTIONS PROVIDED IN THE CI RCULARS OF CBDT. 2 3. UNDER THE CIRCUMSTANCES, BY RESPECTFULLY FOLLOWI NG THE DECISION OF THE HONBLE ANDHRA PRADESH HIGH COURT CITED SUPRA, WE D ISMISS THE APPEAL AS UN- ADMITTED ON THE GROUND THAT IT IS CONTRARY TO THE P OLICY DECISION TAKEN BY THE CBDT. P RONOUNCED IN THE OPEN COURT ON 7.12.2009 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 7 TH DECEMBER, 2009 COPY TO 1 THE ACIT, CIRCLE-5(1), 2 ND FLOOR, DIRECT TAX BUILDING, MVP DOUBLE ROAD, OPP. RYTU BAZAR, VISAKHAPATNAM 2 SRI PANGA MALAKONDAIAH, PROP. SAILAJA INDUSTRIES, D.NO.10-1-50, MEHER NAGAR, GAJUWAKA, VISAKHAPATNAM 3 THE CIT, VISAKHAPATNAM 4 THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM