DCIT CC-47, MUMBAI V. DEEPA K DHUNJIBHOY, MUMBAI

ITA 5805/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4981 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 19-09-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 16-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALMAN KHAN
• Assessee Lawyers: AMIT V JOGLE EMPLOYEE OF
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D MUMBAI . . , , BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI RAJENDRA, ACCOUNTANT MEMBER . / ITA NO.5805/MUM/2011 ' ' ' ' # # # # / ASSESSMENT YEAR 2007-08 . / ITA NO.6895/MUM/2011 ' ' ' ' # # # # / ASSESSMENT YEAR 2008-09 THE DCIT, CEN.CIR.47, ROOM NO.658, 6 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI -400020 ' ' ' ' / VS. SMT. DEEPA KHUSHROO DHUNJIBHOY, IMROZ, 6-A, MOUNT PLEASANT ROAD, MUMBAI 400006 $ ./ % ./ PAN/GIR NO. : ABIOPD 3499B ( $& / APPELLANT ) .. ( '($& / RESPONDENT ) $& ) / APPELLANT BY: SHRI SALMAN KHAN '($& * ) / RESPONDENT BY : SHRI AMIT V. JOGLE (EMPLOYEE OF ASSESSEE) ' * + / DATE OF HEARING : 19/09/2013 ,-# * + / DATE OF PRONOUNCEMENT : 19/09/2013 . / O R D E R PER I.P.BANSAL, J.M: BOTH THESE APPEALS ARE FILED BY THE REVENUE. THE Y ARE DIRECTED AGAINST TWO SEPARATE ORDERS PASSED BY LD. CIT(A)-38,MUMBAI DATED 25/3/2011 AND 21/7/2011 FOR ASSESSMENT YEARS 2007-08 AND 2008-9 RESPECTIVELY. THE GROUNDS RAISED IN BOTH THESE APPEALS READ AS UN DER: . / ITA NO.5805/MUM/2011 ' ' ' ' # # # # / ASSESSMENT YEAR 2007-08 . / ITA NO.6895/MUM/2011 ' ' ' ' # # # # / ASSESSMENT YEAR 2008-09 2 GROUNDS RAISED IN ITA NO.5805/MUM/2011: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD.CIT(A) ERRED IN HOLDING THAT LEASE RENT RECEIVED FROM M/S. FIVE STAR SHIPPING CO. PVT. LTD. WAS AGRICULTURAL INCOME IGNORING THE FACTS THA T NO AGRICULTURAL ACTIVITY WAS CARRIED OUT BY THE LESSEE NAMELY M/S. FIVE STAR SHI PPING CO. PVT. LTD. AND IT WAS A COLLUSIVE TRANSACTION BETWEEN THE ASSESSEE, THE D IRECTOR AND THE LESSEE COMPANY. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. GROUNDS RAISED IN ITA NO.6895/MUM/2011 : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) ERRED IN HOLDING THAT LEASE RENT AT RS. 9,77,132/ -RECEIVED FROM M/S.. FIVE STAR SHIPPING CO. PVT. LTD. WAS AGRICULTURAL INCOME IGNO RING THE FACTS THAT NO AGRICULTURAL ACTIVITY WAS CARRIED OUT BY THE LESSEE NAMELY M/S. FIVE STAR SHIPPING CO. PVT. LTD. AND IT WAS A COLLUSIVE TRANSACTION BE TWEEN THE ASSESSEE, THE DIRECTOR AND THE LESSEE COMPANY. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 2. IN BOTH THESE APPEALS THE REVENUE IS AGITATING THE DELETION OF A SUM OF RS.9,77,132/-. LD. DR WAS REQUIRED TO SUBMIT THAT WHETHER OR NOT TAX EFFECT INVOLVED IN THESE APPEALS EXCEEDS A SUM OF RS.3.00 LACS. AFTER CALCULATING THE TAX EFFECT LD. DR SUBMITTED THAT TAX EXCLUDING INTE REST DOES NOT CROSS A SUM OF RS.3.00 LACS. 3. WE HAVE HEARD BOTH THE PARTIES. AS PER CBDT INS TRUCTION NO.3/11 DATED 9/2/2011 APPEAL BEFORE THE TRIBUNAL SHOULD NOT HAV E BEEN FILED IN CASE WHERE TAX EFFECT IS LOWER THAN RS.3.00 LACS. THE HONBLE HIGH COURT OF BOMBAY IN CASE OF CIT VS. CAMCO COLOR CO. (254 ITR 565) HAVE HELD THAT THE APPEAL FILED BY THE REVENUE AUTHORITIES IN CONTRAVENTION OF THE INS TRUCTION OF CBDT IS NOT MAINTAINABLE. IN THE PRESENT CASE ON THE DATE OF F ILING OF APPEAL THE MONETARY LIMIT WAS RS. 3.00 LACS. THEREFORE, IN VIEW OF TH E JUDGMENT OF THE HONBLE BOMBAY HIGH COURT IN CASE OF CAMCO COLOR CO.(SUPRA) THE PRESENT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AS TAX E FFECT IS LESS THAN RS.3.OO . / ITA NO.5805/MUM/2011 ' ' ' ' # # # # / ASSESSMENT YEAR 2007-08 . / ITA NO.6895/MUM/2011 ' ' ' ' # # # # / ASSESSMENT YEAR 2008-09 3 LACS. WE, THEREFORE, DISMISS THESE APPEALS OF THE R EVENUE AS NON - MAINTAINABLE. 4. IN THE RESULT, APPEALS FILED BY THE REVENUE AR E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19/09/2013 . * ,-# / 0'1 19/09/2013 - * 2 3 SD/- S D/- ( / RAJENDRA ) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 0' DATED 19/09/2013 . . . . * ** * '+45 '+45 '+45 '+45 65#+ 65#+ 65#+ 65#+ / COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. '($& / THE RESPONDENT. 3. 7 ( ) / THE CIT(A)- 4. 7 / CIT 5. 582 '+' , , / DR, ITAT, MUMBAI 6. 29 : / GUARD FILE. .' .' .' .' / BY ORDER, (5+ '+ //TRUE COPY// ; ;; ; / < < < < (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . ' . ./ VM , SR. PS