ITO, Ward-1, Khammam Dist V. Sri Santhoshi Transport, Khammam Dist

ITA 615/HYD/2013

• Counselvise Citation: 61522514 RSA 2013
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 23-02-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 30-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: M CHANDRAMOULESHWRA RAO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SMT.ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.615/HYD/13 : ASSESSMENT YEAR 2006 - 07 INCOME TAX OFFICER, WARD 1, KOTHAGUDEM V/S. M/S. SRI SANTHOSHI TRANSPORT , YELLANDU, KHAMMAM DIST. (PAN AAZFS 7346 A ) (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI RAMAKRISHNA BANDI, DR RESPONDENT BY : SHRI M.CHANDRAMOULESHWRA RAO DATE OF HEARING 23.2.2015 DATE OF PRONOUNCEMENT 23.2.20 15 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : TH IS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS), VIJAYAWADA DATED 8 TH FEBRUARY, 2013, WHEREBY HE D ELETED THE DISALLOWANCE OF RS.9,22,883 AND R S .90,800 MADE BY THE ASSESSING OFFICER UNDER S.40A(IA ) AND S.40A(3) OF THE ACT RESPECTIVELY. 2. WE HAVE H E ARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE REL E VANT MATERIAL ON RECORDS. AS SUBMITTED BY THE LEARNED COUNSEL F OR THE ASSESSEE , AT THE OUTSET, THE TAX EFFECT INVOLVED IN THIS APPEAL O F THE REVENUE IS LESS THAN THE MONETARY LIMIT OF RS.4 LAKHS PRESCRIBED BY THE CBDT FOR FILIN G THE APPEALS BEFORE TH E TRIBUNAL , AND THE SAME, THEREFORE, IS NO T MAINTAINABLE. ALTHOUGH THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NO T DISPU T ED THE FACT THAT THE TAX EFFECT INVOLVED IN THIS APPEAL O F THE REVENUE IS LESS TH A N R S .4 LAKHS, HE HAS CONTENDED THAT THE R E VISED I TA NO. 615 /H YD/20 1 3 M/S. SRI SANTHOSHI TRANSPORT, YELLANDU, KHAMMAM DIST. 2 MONETARY LIMIT OF R S .4 LAKHS FIXED BY THE CBDT VIDE INSTRUCTION NO.5 OF 2014 ISSUED ON 10 TH JULY, 2014 FOR FILING O F THE DEPARTMENTAL APPEALS B E FORE THE TRIBUN A L IS APPL I CABLE ONLY TO THE APPEALS F I LED ON OR AFTER 10 TH JULY,2014. HE HAS CONTENDED THAT SIN C E THE PRESENT APPEAL W AS FILED BY THE DEPARTMENT ON 4.7.2013 , THE REVISED MONETARY LIM I T OF R S . 4 LAKHS IS NO T APPLICABLE TO THE SAME. IN THI S REGARD, THE LEARNED COUNSEL FOR THE ASSESSEE HAS RELIED ON THE DECISION OF THE KOLKATA BENCH O F THE TRIBUNAL IN TH E CA S E OF ITO , WARD 3 , MURSHIDABAD V/S. NABIKCHUDDIN SK. R ENDERED VIDE ITS ORDER DATED 12.8.2014 PASSED IN ITA NO.34 0/KOL/2012 , WHEREIN A SI MIL AR ARGUM E N T RAISED ON BEHALF OF TH E DEP A RTMENT WAS REJ E CTED BY THE TRIBUNAL RELYING INTER ALIA ON THE DECISION OF THE HON'BLE GUJAR AT HIGH COURT IN THE C A S E OF SURESHCHADNRA DURGA PRASAD KHATOD(HUF) (2 5 3 CTR 492 ) (GUJ) , WHEREIN IT WAS HELD , KEEPING IN VIEW THE MAIN OBJECTIVE OF THE INSTRU C TION ISSUED BY THE CBDT TO REDUCE THE PENDING LIT I GATION WH E RE THE TAX EFFECT IS CONSIDERABL Y LOW OR SMALL, THAT THE SAME WOULD APPLY TO PENDING APPEALS ALSO. KEEPING IN VIEW THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CA S E OF NABIKCHUDDIN SK.(SUPRA) , WE HOL D TH A T THE PRESENT APPEAL FIL E D BY THE D E PARTMENT INVOLVING A TAX EFFECT O F LESS THAN THE MON E TARY LIM I T OF R S .4 LAKH S FIXED BY THE C BDT IN ITS I NST R U CT ION NO.5 OF 2014 DATED 10 TH JULY, 2014 FOR FILIN G O F APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL, IS NOT MAINTAINABLE. THE SAME IS ACCORDINGLY DISMISSED. 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF HEARING ON THE APPEAL ON 23 RD FEBRUARY, 2015 SD/ - SD/ - ( ASHA VIJAYARAGHAVAN ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER D T/ - 23 RD FEBRUARY, 201 5 I TA NO. 615 /H YD/20 1 3 M/S. SRI SANTHOSHI TRANSPORT, YELLANDU, KHAMMAM DIST. 3 COPY FORWARDED TO: 1. M/S. SRI SANTHOSHI TRANSPORT , NO.12, BASTHI, YELLANDU, KHAMMAM DIST. 2 . INCOME TAX OFFICER WARD 1, KOTHAGUDEM 3. COMMISSIONER OF INCOME - TAX(APPEALS) VIJAYAWADA 4. COMMISSIONER OF INCOME - TAX, VIJAYAWADA 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S