ITO 3(1)(1), MUMBAI V. AEROMATUM PERFUMES P. LTD, MUMBAI

ITA 5458/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 4031 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 19-10-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 01-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JI TENDRA YADAV
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI VIJAY PAL RAO, JM ITA NO.5458/MUM/2009 : ASST.YEAR 2005-2006 THE INCOME TAX OFFICER RANGE 3(1)(1) MUMBAI. VS. M/S.AEROMATUM PERFUMES PRIVATE LIMITED A-1, 433/434, SHAH & NAHAR IND. ESTATE DHANRAJ MILLS COMPOUND SITARAM JADHAV MARG, LOWER PAREL MUMBAI 400 013. PA NO.AAECA4447L. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI JITENDRAYADAV RESPONDENT BY : SHRI ANANT N.PAI O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 16.07.2009 IN RELATION TO THE ASSESSMENT YEAR 2005-2006. 2. AT THE VERY OUTSET THE LEARNED COUNSEL FOR THE A SSESSEE PLACED ON RECORD A STATEMENT SHOWING THE COMPUTATION OF TAX EFFECT AND CONTENDED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS RS.1,86,099, WHICH IS BE LOW THE PRESCRIBED LIMIT OF RS.2 LAKHS FOR FILING THE APPEAL BEFORE THE TRIBUNAL BY THE REVENUE AS PER THE CBDT CIRCULAR. THE LEARNED DEPARTMENTAL REPRESENTATIVE F AIRLY ADMITTED THAT THE COMPUTATION OF TAX EFFECT MADE BY THE ASSESSEE IS C ORRECT. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.2 LAKHS AS PER THE LIMIT PRE SCRIBED BY THE CBDT FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL. IN SUCH A SITUATION THE APPEAL FILED IN CONTRAVENTION OF SUCH LIMIT CANNOT BE SUSTAINED. TH IS VIEW IS DULY SUPPORTED BY THE DECISION IN THE CASE OF ACIT VS. SATISH CHANDRA, 10 SOT 383. SIMILAR VIEW HAS ITA NO.5458/MUM/2009 M/S.AEROMATUM PERFUMES PRIVATE LIMITED. 2 BEEN TAKEN BY THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO. 254 ITR 565, WHEREIN IT HAS BEEN HELD THAT THE TAX EFFECT INVOLVED IN THE APPEAL FILED BY THE REVENUE BEING LESS THAN THE MONETARY L IMIT AS PRESCRIBED IN BOARD CIRCULAR, THE SAME IS NOT MAINTAINABLE. RESPECTFULL Y FOLLOWING THE PRECEDENTS, WE DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAIN TAINABLE. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 27 TH DAY OF OCTOBER, 2010. SD/- SD/- ( VIJAY PAL RAO ) ( R.S.SYAL ) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 27 TH OCTOBER, 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XXVIII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.