ITO 18(2)2), MUMBAI V. COMMERCIAL BOOK BINDING WORKS, MUMBAI

ITA 5921/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0669 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J
• Assessee Lawyers: R M SAVANT
• Keywords: Valuation report; Tax effect
• Section: 154

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI . . , . , BEFORE SHRI I.P. BANSAL, JM AND RAJENDRA, AM ./ I.T.A. NO.5921/MUM/2013 ( / ASSESSMENT YEAR : 2007-08 THE INCOME TAX OFFICER 18(2)(2), ROOM NO.111, PIRAMAL CHAMBERS, LALBAUG PAREL, MUMBAI 400 012. / VS. M/S. COMMERCIAL BOOK BINDING WORKS, 97/AB UDYOG BHAVAN, OLD PRABHADEVI RAOD, MUMBAI 400 025. ./ ./ PAN/GIR NO. : AAACF 8024G ( / APPELLANT ) .. ( / RESPONDENT ) A PPELLANT BY SHRI PREMANAND J RESPONDENT BY SHRI R.M. SAVANT ' #$ / DATE OF HEARING : 06/05/2015 ' #$ / DATE OF PRONOUNCEMENT : 06/05/2015 / O R D E R PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE REVENUE AND IT IS D IRECTED AGAINST ORDER PASSED BY LD. CIT(A)-16, MUMBAI DATED 23/7/2013 FOR ASSESSMENT YEAR 2007-08. GROUNDS OF APPEAL READ AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT (A) HAS ERRED IN DIRECTING TO THE AO TO RECTIFY THE ASSESSM ENT ORDER BY ADOPTING THE . VALUATION MADE BY DISTRICT VALUATION OFFICER WHICH WAS NOT AVAILABLE TO THE AO WHILE PASSING THE ASSESSMENT ORDER. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT (A) HAS ERRED IN HOLDING THAT AN ASSESSMENT ORDER CAN BE RE CTIFIED U/S 154 ON RECEIPT OF VALUATION REPORT FROM DISTRICT VALUATION OFFICER . 3. . FOR THESE AND OTHER REASONS IT IS SUBMITTED TH AT THE ORDER OF THE CIT(A) MAY BE SET ASIDE AND THAT OF THE AO RESTORED. ./ I.T.A. NO.5921/MUM/2013 ( / ASSESSMENT YEAR : 2007-08 2 2. IT IS SEEN FROM THE ORDER PASSED BY LD. CIT(A), THE TAX EFFECT MENTIONED IS ONLY A SUM OF RS.3,32,598/-, WHICH IS MUCH LESS THAN THE LIMIT OF RS.4.00 LACS DESCRIBED IN THE CBDT INSTRUCTION NO.5/2014 (F.NO.279/MISC.142/2007-ITJ(PT)], VIDE WHICH THE TA X EFFECT LIMIT FOR FILING THE APPEAL BEFORE THE TRIBUNAL WAS ENHANCED FROM RS .3.00 LACS TO RS.4.00 LACS. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES. HOWEVER, ACCORDING TO FOLLOWING DECISIONS OF HONBLE JURISD ICTIONAL HIGH COURT, SUCH NOTIFICATIONS ISSUED UNDER SECTION 268A WOULD BE AP PLICABLE EVEN TO THE APPEALS FILED BEFORE ISSUE OF THE NOTIFICATION IF THE LIMIT IS ENHANCED: 1. IN THE CASE OF CIT VS. SMT. VIJAYA KAVEKAR (201 3 30 TAXMANN.COM 412) IT WAS HELD AS UNDER: SECTION 260A, READ WITH SECTION 268A, OF THE INCOME -TAX ACT, 1961 - HIGH COURT - APPEALS TO - TAX EFFECT - WHETH ER INSTRUCTION NO. 3 OF 2011, DATED 9-2-2011, SPECIFYING MONETARY LIMIT OF RS. 10 LAKHS FOR MAINTAINABILITY OF APPEAL BEFORE HIGH COURT IS APPLICABLE ON PENDING APPEALS AS WELL - HELD, YES - WHETHER, THEREFORE, WHERE TAX EFFECT IN REVENUES APPEALS WA S LESS THAN RS. 10 LAKHS WHICH WAS FILED EVEN PRIOR TO ISSUE OF INSTRUCTION DATED 9-2-2011, SAME WAS TO BE DISMISSED BEING NON- MAINTAINABLE - HELD, YES [IN FAVOUR OF ASSESSEE ] 2. IN THE CASE OF CIT VS. MADHUKAR IMANDAR (2009 1 85 TAXMAN 101] IT WAS HELD AS UNDER: SECTION 268A, READ WITH SECTION 119, OF THE INCOME- TAX ACT, 1961 - APPEAL OR APPLICATION FOR REFERENCE - FILING OF, BY INCOME-TAX AUTHORITY - WHETHER CIRCULAR/INCOME-TAX INSTRUCTION NO. 5 OF 2008, DATED 15-5-2008 ISSUED BY CBDT DIRECTING INCOME-TAX AUTHORITIES NOT TO FILE APPEALS IF TAX EFFECT IS LESS THAN RS. 4 LAKHS WOULD BE APPLICABLE TO CASES PENDING BEFORE HIGH COURT AS ON 15-5-2008 EITHER FOR ADMISSION OR FOR FINAL DISPOSAL, EVEN TH OUGH SAID APPEALS AND/OR PETITIONS WERE FILED BEFORE HIGH COU RT PRIOR TO 15- 5-2008 - HELD, YES ./ I.T.A. NO.5921/MUM/2013 ( / ASSESSMENT YEAR : 2007-08 3 4. IN THIS VIEW OF THE SITUATION, WE DISMISS THE APPEAL FILED BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT AS PER AFOREME NTIONED INSTRUCTION ISSUED BY CBDT. ORDER PRONOUNCED IN THE OPEN COURT ON 06/05/2015 ' * +, 06/05/2015 ' SD/- SD/- (RAJENDRA) . . (I.P.BANSAL) /ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; + DATED 06/05/2015 !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. /# ( ) / THE CIT(A)- 4. /# / CIT 5. 01 #23 , $ 23 , / DR, ITAT, MUMBAI 6. 4 / GUARD FILE. / BY ORDER, 0# # //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . . .VM , SR. PS