ADDL CIT RG 7(1), MUMBAI V. PSL LTD, MUMBAI

ITA 6040/MUM/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62387 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 28-05-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 04-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C G K NAIR
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Tax effect; Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C , MUMBAI BEFORE SHRI DINESH KUMAR AGARWAL, J.M. AND SHRI N. K. BILLAIYA, A.M. ITA NO. : 6040/MUM/2010 ASSESSMENT YEAR : 2006-07 D.C.I.T. CIR. 7(1), 622, AAYAKAR BHAVAN, M.K. MARG, MUMBAI VS. M/S. PSL LTD. 386, VEER SAVARKAR MARG, PRABHADEVI, MUMBAI-400 025 PAN NO: AAACP 2734 K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C. G. K. NAIR RESPONDENT BY : SHRI M. SUBRAMANIAN DATE OF HEARING : 28.05.2012 DATE OF PRON OUNCEMENT : 28.05.2012 ORDER PER N. K. BILLAIYA, A.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 30.04.2010 OF THE CIT-13, MUMBAI FOR THE A.Y. 2006- 07. 2. THE REVENUE HAS RAISED THE FOLLOWING EFFECTIVE G ROUND IN THIS APPEAL : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) ERRED IN DECIDING THAT THE EXPENDITURE OF `. 659832/- INCURRED BY THE ASSESSEE FOR MAINTENANCE OF LAND AT PANIPAT AS REVENUE EXPENDITURE THEREBY ALLOWING THE ASSESSEES APPEAL AGAINST THE ADDITION OF THAT AMOUNT IN THE TOTAL IN COME OVERLOOKING THE FACT THAT SUCH AN EXPENSE PROVIDES ENDURING BEN EFIT TO THE ASSESSEE. 3. WE HAVE HEARD THE LD DR AS WELL AS THE LD AR OF THE ASSESSEE AND CONSIDERING THE RELEVANT MATERIAL ON RECORD. AT TH E OUTSET, WE NOTE THAT THE ITA NO : 6040/MUM/2010 M/S. PSL LIMITED. 2 TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS. 3 LAKHS AS PER THE LIMIT PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO.3 OF 201 1 FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL. IN SUCH A SITUATI ON 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 CHAN DRA, 10 SOT 383. SIMILAR VIEW HAS BEEN TAKEN BY THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO. 254 ITR 565, WHEREIN IT HAS BEEN HELD TH AT THE TAX EFFECT INVOLVED IN THE APPEAL FILED BY THE REVENUE BEING LESS THAN THE MONETARY LIMIT AS PRESCRIBED IN BOARD CIRCULAR, THE SAME IS NOT MAINT AINABLE. 3.1 ACCORDINGLY, IN VIEW THE CIRCULAR OF 2011 AS A PPLICABLE TO THE APPEALS FILED EARLIER, THE HONBLE JURISDICTIONAL HIGH COUR T HAS HELD IN THE CASE OF CIT VS MADHUKAR K INAMDAR (HUF) REPORTED IN 318 ITR 149 THAT THE APPEALS FILED BY THE REVENUE PRIOR TO THE CIRCULAR SHALL ALSO BE GOVERNED THE MONETARY LIMIT OF THIS CIRCULAR. SIMILAR VIEW HAS BEEN REIT ERATED BY THE MUMBAI BENCH OF THE TRIBUNAL VIDE ORDER DATED 29.04.2011 IN ITO VS INDIA SAFETY VAULTS LTD., IN ITA NO. 648-651/M/2010. RESPECTFULLY FOLL OWING THE PRECEDENTS, WE HOLD THAT THE APPEAL FILED BY THE REVENUE CANNOT BE TAKEN UP FOR DECISION ON MERITS AS THE TAX EFFECT IN THIS CASE IS ADMITTEDLY LESS THAN RS. 3.00 LACS. WE, THEREFORE, DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE T IME OF HEARING I.E. 28.05.2012 SD/ - SD/ - - ( DINESH KUMAR AGARWAL ) ( N. K. BILLAIYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DT: 28.05.2012 ITA NO : 6040/MUM/2010 M/S. PSL LIMITED. 3 COPY FORWARDED TO : 1. THE APPELLANT, 2. THE RESPONDENT, 3. THE C.I.T. 4. CIT (A) 5. THE DR, - BENCH, ITAT, MUMBAI //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI ROSHANI