The DCIT, Circle-2, RAJKOT-GUJARAT V. Friends Land Development Co., RAJKOT-GUJARAT

ITA 468/RJT/2007

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50009 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-05-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 27-08-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAY RAJ KUMAR
• Assessee Lawyers: J C RANPURA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT. BEFORE SHRI A. L. GEHLOT (AM )AND SHRI N.R.S. GANE SAN(JM) ITA NO.468/RJT/07 (ASSESSMENT YEAR 2004-05.) THE D.C.I.T., VS. M/S. FRIENDS LAND DEVELOPMENT CO., CIRCLE-2, RAJKOT. RAJKOT. PAN:AAAFF4174E. (APPELLANT) (RESPONDENT). C.O. NO.38/RJT/07. (ASSESSMENT YEAR 2004-05.) M/S. FRIENDS LAND DEVELOPMENT CO., VS. THE D .C.I.T., RAJKOT. CIRCLE-2, RAJKOT. PAN:AAAFF4174E. (APPELLANT) (RESPONDENT). DEPARTMENT BY : SHRI JAY RAJ KUMAR . ASSESSEE BY : SHRI J.C. RANPURA, C.A. O R D E R PER N.R.S.GANESAN (JM). THIS APPEAL OF THE REVENUE AND CROSS- OBJECTION OF THE ASSESSEE WAS DISMISSED BY THIS TRI BUNAL BY AN ORDER DATED 21-10-2008 ON THE GROUND THAT THE TAX EFFECT IN THI S APPEAL IS LESS THAN RS.2,00,000/-. HOWEVER, THE REVENUE FILED A MISC. A PPLICATION NO.23/RJT/2010 ON THE GROUND THAT THE ACTUAL TAX PA YABLE COMES TO RS.2,31,268/-. THEREFORE, THE REVENUE HAS CONTENDED THAT THE APPEAL OF THE REVENUE OUGHT TO HAVE BEEN DECIDED ON MERITS. ACCO RDINGLY, THIS TRIBUNAL BY AN ORDER DATED 17-08-2010 RECALLED ITS EARLIER O RDER DATED 21-10-2008 AND ITA 468/07 & C.O.38-07 A.Y. 2004-05. 2 RESTORED THE APPEAL ON FILE. ACCORDINGLY, THE APPE AL OF THE REVENUE AND THE CROSS-OBJECTION OF THE ASSESSEE IS POSTED FOR FINAL DISPOSAL. DURING THE COURSE OF HEARING, THE LD. A.R. FOR THE ASSESSEE SU BMITTED THAT THE CBDT, AN APEX ADMINISTRATIVE BODY OF DIRECT TAX ADMINISTRATI ON MODIFIED THE MONETARY LIMIT FOR FILING OF APPEAL IN THE EXERCISE OF ITS A DMINISTRATION POWER U/S.119 OF THE INCOME-TAX ACT AND INSTRUCTED ALL ITS OFFICE R NOT TO FILE THE APPEAL BEFORE THIS TRIBUNAL WHENEVER THE TAX EFFECT IS LES S THAN RS.3,00,000/-. IN THIS CASE, ADMITTEDLY, THE TAX EFFECT IS RS.2,31,26 8/-. THEREFORE, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. THE LD. A.R. FOR THE ASSESSEE FURTHER SUBMITTED THAT THE ASSESSEE IS NOT PRESSING THE CRO SS-OBJECTION. 2. WE HEARD SHRI JAY RAJ KUMAR, LD. D. R. THE LD. D .R. VERY FAIRLY SUBMITTED THAT THE TAX EFFECT IS LESS THAN RS.3,00, 000/-. HOWEVER, HE RAISED AN APPREHENSION WHETHER THE CIRCULAR ISSUED BY THE CBDT INCREASING THE MONETARY LIMIT FOR FILING THE APPEAL BEFORE THIS TR IBUNAL WOULD BE APPLICABLE FOR THE PENDING MATTERS OR NOT. WE FIND THAT THIS I SSUE HAS BEEN DISCUSSED BY THIS TRIBUNAL ELABORATELY ON THE BASIS OF THE JUDGM ENT OF BOMBAY HIGH COURT IN C.I.T. VS. CAMCO COLOUR CO. 254 ITR 565 A ND FOUND THAT EVEN THE EARLIER CIRCULAR ISSUED BY THE CBDT WITH SIMILAR EX PRESSION WAS HELD TO BE RETROSPECTIVE IN OPERATION. ACCORDINGLY, THE PRESE NT CIRCULAR ISSUED BY THE CBDT FIXING THE MONETARY LIMIT AT RS.3,00,000/- FOR FILING THE APPEAL BEFORE THIS TRIBUNAL IS ALSO APPLICABLE RETROSPECTIVELY. IN ANOTHER WORD, THE CIRCULAR ISSUED BY THE CBDT IS EQUALLY APPLICABLE TO THE PEN DING APPEALS BEFORE THIS TRIBUNAL. IN VIEW OF THE ABOVE, IN OUR OPINION, TH E APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE SINCE THE TAX EFFECT IS ADMITTEDLY LESS THAN RS.3,00,000/-. THE CROSS-OBJECTION OF THE ASSESSEE IS ALSO DISMISSED AS NOT ITA 468/07 & C.O.38-07 A.Y. 2004-05. 3 PRESSED. IN THE RESULT, BOTH THE APPEAL OF REVENUE AND CROSS-OBJECTION OF THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13-05-2011. SD/- SD/- ( A. L. GEHLOT ) (N.R.S.GANESAN) ACCOUNTANT MEMBER. JUDICIAL MEMBER. PLACE : RAJKOT, DATED: 13-05-2011. NVA/ COPY TO: 1. THE D.C.I.T., CIRCLE-2, RAJKOT. 2. FRIENDS LAND DEVELOPMENT CO., RAJKOT. 3. THE C.I.T.(A)-II, RAJKOT. 4. THE C.I.T.-, RAJKOT. 5. THE D.R., I.T.A.T., RAJKOT. TRUE COPY. BY ORDER ASSTT.REGISTRAR. ITAT, RAJKOT.