ACIT, CHENNAI V. M/s. Shri Shanthinath Benefit Fund Ltd., Villupuram

ITA 501/CHNY/2011

• Counselvise Citation: 50121714 RSA 2011
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 15-12-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 17-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R B NAIK
• Assessee Lawyers: N DEVANATHAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T.A. NO. 501/MDS/2011 (ASSESSMENT YEAR : 2003-04) THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(2), CHENNAI 600 034. (APPELLANT) V. M/S SHRI SHANTHINATH BENEFIT FUND LTD., 234, KAMARAJ SALAI, VILLUPURAM 605 602. PAN : AAACS7042R (RESPONDENT) APPELLANT BY : SHRI R.B. NAIK, CIT-DR RESPONDENT BY : SHRI N. DEVANATHAN DATE OF HEARING : 15.12.11 DATE OF PRONOUNCEMENT : 15.12.11 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL, REVENUE IS AGGRIEVED THAT THE CIT (APPEALS) HELD IN HIS ORDER DATED 7.1.2011 THAT THE REOPENING DONE FOR THE IMPUGNED ASSESSMENT YEAR TO BE NOT VALID AND DELETE D AN ADDITION OF ` 2,52,000/- MADE BY THE A.O. BY DISALLOWING THE CLA IM OF REMUNERATION PAID TO THE DIRECTORS. I.T.A. NO. 501/MDS/11 2 2. IT IS CLEAR FROM THE GROUNDS ITSELF THAT EVEN IF THE REOPENING IS HELD TO BE VALID, THE ADDITION EFFECTED BY THE A.O. BEING ONLY ` 2,52,000/-, THE TAX EFFECT IS MUCH LESS THAN ` 3 LAKHS AND EVEN WELL BELOW ` 2 LAKHS. THEREFORE, IN VIEW OF CBDT CIRCULAR NO.3 OF 2008 DATED 9.2.2011, THE APPEAL IS NOT MAINTAINABLE. 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D FOR LOWER TAX EFFECT. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 15 TH DECEMBER, 2011. SD/- SD/- (HARI OM MARATHA) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 15 TH DECEMBER, 2011. KRI. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A)-V, CHENNAI-34 (4) CIT, CHENNAI-III, CHENNAI (5) D.R. (6) GUARD FILE