DCIT 10(2), MUMBAI V. UNIVERSAL MEDICARE P. LTD, MUMBAI

ITA 6077/MUM/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62461 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 21-05-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 06-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M MURALI
• Assessee Lawyers: D V LAKHANI
• Keywords: Bad and doubtful debts; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F , MUMBAI BEFORE SHRI VIJAY PAL RAO, J.M. AND SHRI N. K. BILL AIYA, A.M. ITA NO. : 6077/MUM/2010 ASSESSMENT YEAR : 2004-05 ASST. COMMISSIONER OF INCOME - TAX, LARGE TAXPAYER UNIT CENTRE-1, WORLD TRADE CENTRE, 28 TH FLOOR, CUFFE PARADE, MUMBAI-400 005 VS. M/S. UNIVERSAL MEDICARE PVT. LTD. SION TROMBAY ROAD, DEONAR, MUMBAI-400 088 PAN NO: AAACU 0717 B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M. MURALI RESPONDENT BY : S HRI D. V. LAKHANI DATE OF HEARING : 21.05.2012 DATE OF PRONOUNCEMENT : 25.05.2012 ORDER PER N. K. BILLAIYA, A.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 24.05.2010 OF CIT-24, MUMBAI FOR THE A.Y. 2004-05. THE ONLY EFFECTIVE GROUND OF APPEAL IS THAT ON THE FACTS AND CIRCUMSTA NCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN CANCELLING THE LEVY U/S.271(1)(C) OF THE ACT ON ACCOUNT OF DOUBTFUL DEBTS AND TRAVELLING EXPENSE S WHEN THE ASSESSEE HAD NOT PRODUCED THE PROOF OF SUCH EXPENSES. 2. AT THE OUTSET, THE LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED A CHART EXHIBITING THE DISALLOWANCE UNDER THE HEAD TRAVELLING ITA NO : 6077/MUM/2010 M/S. UNIVERSAL MEDICARE PVT. LTD. 2 EXPENSES OF `. 2,61,000/- AND DOUBTFUL DEBTS OF `. 2,91,091/-. THE COUNSEL FURTHER POINTED OUT THAT FOR THE YEAR UNDER CONSIDERATION, THE TOTAL TAX WOULD BE `. 1,98,063/- AND AS THE A.O. HAS LEVIED MINIMUM PENALTY, THE SAME WOULD BE EQUALLED TO THE TAX AS C ALCULATED TO HEREINABOVE WHICH IS COVERED BY THE INSTRUCTION NO. 3 OF 2011 ISSUED BY THE CBDT PRESCRIBING THE LIMIT FOR FILING OF APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE CONSIDERED THIS CHART AND PERUSED THE OR DER OF THE LD. CIT(A). WE FIND FORCE IN THE CONTENTION OF THE LEA RNED AR. IN SUCH A SITUATION, THE APPEAL FILED IN CONTRAVENTION OF SUC H LIMIT CANNOT BE SUSTAINED. THIS VIEW IS DULY SUPPORTED BY THE DECI SION IN THE CASE OF ACIT VS. SATISH CHAND JAIN (2006) 10 SOT 383 (DEL.). SIMILAR VIEW HAS BEEN TAKEN BY THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO. (2002) 254 ITR 565 (BOM) , WHEREIN IT HAS BEEN HELD THAT THE TAX EFFECT INVOLVED IN THE APPEAL FILED BY THE REVENUE BEING LESS THAN THE LIMIT AS PRESCRIBED IN THE BOARD CIRCULAR, THE SAME IS NOT MAINTAINABLE. 4. ACCORDINGLY, IN VIEW OF THE CIRCULAR OF 2011 AS APPLICABLE TO THE APPEALS FILED EARLIER, THE HON'BLE JURISDICTIONAL H IGH COURT HAS HELD IN THE CASE OF CIT VS. MADHUKAR K. INAMDAR (HUF) 318 ITR 149 THAT THE APPEALS FILED BY THE REVENUE PRIOR TO THE CIRCULAR ALSO BE COVERED BY THE MONETARY LIMIT OF THE CIRCULAR. RESPECTFULLY, FOLL OWING THE DECISION ABOVE ITA NO : 6077/MUM/2010 M/S. UNIVERSAL MEDICARE PVT. LTD. 3 WE HOLD THAT THE APPEAL CANNOT BE TAKEN UP ON DECIS ION OF MERITS, AS THE TAX EFFECT ON THIS CASE IS LESS THAN `. 3 LAKHS. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON THIS 25 TH DAY OF MAY, 2012. SD/- - SD/- ( VIJAY PAL RAO ) ( N. K. BILLAIYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DT: 25.05.2012 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