ACIT CIR 13(3), MUMBAI V. ASHISH INTERNAITONAL, MUMBAI

ITA 4432/MUM/2010

• Counselvise Citation: 443219914 RSA 2010
• Duration Of Justice: 1 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 14-11-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 31-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R POPAT
• Assessee Lawyers: J V CHHABRIA
• Keywords: Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER, A ND SHRI V. DURGA RAO, JUDICIAL MEMBER ITA NO. 4432/MUM./2010 (ASSESSMENT YEAR : 2006-07 ) ASSTT. COMMISSIONER OF INCOME TAX CIRCLE-13(3), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .. APPELLANT V/S M/S. ASHISH INTERNATIONAL 407, AGH CHAMBERS 379/381, NARSI NATHA STREET MUMBAI 400 009 PAN AAAFA3905G .... RESPONDENT REVENUE BY : MR. B.R. POPAT ASSESSEE BY : MR. J.V. CHHABRIA DATE OF HEARING 14.11.2011 DATE OF ORDER 23.11.2011 O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL FILED BY THE REVENUE, IS DIRECTED AGAI NST THE IMPUGNED ORDER DATED 23 RD MARCH 2010, PASSED BY THE COMMISSIONER (APPEALS)-X XIV, MUMBAI, FOR ASSESSMENT YEAR 2006-07. 2. BOTH THE PARTIES AGREE BEFORE US THAT THE TAX EFFEC T IN THE REVENUES APPEAL IS LESS THAN ` 3,00,000. AS PER CBDT INSTRUCTION NO.3 OF 2011, DA TED M/S. ASHISH INTERNATIONAL ITA NO. 4432/MUM./2010 2 9 TH FEBRUARY 2011, THE APPEAL BEFORE THE APPELLATE TRI BUNAL CAN BE FILED BY THE REVENUE, WHEN THE TAX EFFECT EXCEEDS THE MONITO RY LIMIT OF ` 3,00,000. 3. THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V/ S MADHUKAR K. INAMDAR (HUF), 318 ITR 149 (BOM.) HELD AS FOLLOWS:- THE CIRCULAR DATED MAY 15, 2008 IN GENERAL AND PAR AGRAPH (5) THEREOF IN PARTICULAR LAY DOWN THAT EVEN IF THE SAME ISSUE, IN RESPECT OF THE SAME ASSESSEE, FOR OTHER ASSESSMENT YEARS IS INVOLV ED, THE DEPARTMENT SHOULD NOT FILE APPEAL, IF THE TAX EFFEC T IS LESS THAN ` 4 LAKHS. IN OTHER WORDS, EVEN IF THE QUESTION OF LAW IS OF RECURRING NATURE, THE REVENUE IS NOT EXPECTED TO FILE APPEALS IN SUCH CASES, IF THE TAX IMPACT IS LESS THAN THE MONETARY LIMIT FIXE D BY THE CENTRAL BOARD OF DIRECT TAXES. THE BOARD HAS ALSO ISSUED A CIRCULAR ON JUNE 5, 2007, DIRECTING THE DEPARTMENT TO EXAMINE ALL APPEA LS PENDING BEFORE THE COURT ON A CASE TO CASE BASIS WITH FURTHER DIRE CTION TO WITHDRAW CASES WHEREIN THE CRITERIA OF MONETARY LIMITS AS PE R THE PREVAILING INSTRUCTION ARE NOT SATISFIED, UNLESS THE QUESTION OF LAW INVOLVED OR RAISED IN APPEAL OR REFERRED TO THE HIGH COURT FOR OPINION IS OF A RECURRING NATURE REQUIRED TO BE SETTLED BY THE HIGH ER COURT. THE CIRCULAR MAKES IT CLEAR THAT ON THE DATE OF ISSUANC E OF THE CIRCULAR, PREVAILING INSTRUCTIONS FIXING MONETARY LIMIT WILL HOLD GOOD EVEN FOR PENDING CASES. THE CIRCULAR DATED MAY 15, 2008 WOUL D BE APPLICABLE TO PENDING CASES REQUIRING THE DEPARTMENT TO WITHDRAW CASES WHEREIN THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS. THE CIRCULAR DATED MAY 15, 2008, WOULD BE APPLICABLE TO CASES PE NDING BEFORE THE COURT EITHER FOR ADMISSION OR FOR FINAL DISPOSAL AN D IT IS BINDING ON THE REVENUE. 4. SIMILAR VIEW WAS TAKEN BY THE HON'BLE JURISDICTIONA L HIGH COURT IN THE JUDGMENT IN CIT V/S PITHWA ENGINEERING WORKS, (2005 ) 276 ITR 519 (BOM.), AND THE HON'BLE DELHI HIGH COURT IN M/S. P.S. JAIN & CO., 335 ITR 591 (DEL.). APPLYING THE PROPOSITIONS LAID DOWN IN THESE CASE L AWS TO THE FACTS OF THE PRESENT CASE, WE DISMISS THE REVENUES APPEAL. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD NOVEMBER 2011 SD/- V. DURGA RAO JUDICIAL MEMBER SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 23 RD NOVEMBER 2011 M/S. ASHISH INTERNATIONAL ITA NO. 4432/MUM./2010 3 COPY TO : (1) THE ASSESSEE; (2) THE RESPONDENT; (3) THE CIT(A), MUMBAI, CONCERNED; (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, A BENCH, ITAT, MUMBAI. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI DATE INITIAL 1. DRAFT DICTATED ON 14.11.2011 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 15.11.2011 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 18.11.2011 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 18.11.2011 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 18.11.2011 SR.PS 6. DATE OF PRONOUNCEMENT 23.11.2011 SR.PS 7. FILE SENT TO THE BENCH CLERK 24.11.2011 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER