ITO, Ward-1, Khammam V. M/s Sunder Talkies, Khammam

ITA 627/HYD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69720 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 01-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAKIR HUSSAIN SHAIK
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 627/HYD/2013 ASSESSMENT YEAR: 2004-05 INCOME-TAX OFFICER, APPELLANT WARD 1, KHAMMAM VS. M/S SUNDER TALKIES, KHAMMAM RESPONDENT (PAN AAJFS 7254F) APPELLANT BY : SHRI SHAKIR HUSSAIN SHAIK ASSESSEE BY : NONE DATE OF HEARING : 07/08/2013 DATE OF PRONOUNCEMENT : 07/08/ 2013 ORDER PER CHANDRA POOJARI, A.M.: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A), VIJAYAWADA, DATED 08/02/2013 FOR THE ASSESSMENT YEAR 2004-05. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS AP PEAL: 1. THE CIT(A), VJA HAS ERRED IN LAW AND FACTS OF T HE CASE IN ALLOWING THE APPEAL OF THE ASSESSEE AND DECIDING TH AT THE BENEFICIAL OWNER IS THE PERSON ELIGIBLE FOR CLAIMIN G THE DEPRECIATION THOUGH THE ASSET IS NOT IN THE NAME OF THE SAID PERSON. 2. WHETHER THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT THE DEPRECIATION AND MAINTENANCE EXPENDITURE ARE TO BE ALLOWED TO THE ASSESSEE FIRM THOUGH THE ASSET IS IN THE NAM E OF THE PARTNER. 3. THOUGH THE TAX EFFECT INVOLVED IS BELOW THE MONE TARY LIMITS AS SPECIFIED IN INSTRUCTION NO. 3/2011, BUT, FALLS UNDER EXCEPTION C. 2 ITA NO. 627/HYD/13 M/S SUNDER TALKIES 3. NONE APPEARED ON BEHALF OF THE RESPONDENT-ASSESS EE AT THE TIME OF HEARING OF THIS APPEAL. HOWEVER, WE PROCEED TO DECIDE THIS APPEAL AFTER HEARING THE LEARNED DR, AS THE TA X EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS. 3 LAKHS. 4. WE HAVE HEARD THE LEARNED DR AND PERUSED THE R ELEVANT MATERIAL ON RECORD. WE FIND THAT, AFTER GIVING APPE AL EFFECT, THE TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REV ENUE IS LESS THAN RS. 3 LAKHS AND THIS POSITION HAS NOT BEEN DISPUTED EVEN BY THE LEARNED DR. AS PER THE CBDT INSTRUCTION NO. 3 OF 20 11 ISSUED ON 09/02/2011, THE MONETARY LIMIT FOR FILING OF AN APP EAL BY THE DEPARTMENT BEFORE THE TRIBUNAL HAS BEEN REVISED TO RS. 3 LAKHS. AS DECIDED BY THE CBDT, APPEALS SHALL NOT BE FILED BY THE DEPARTMENT IN CASES WHERE TAX EFFECT DOES NOT EXCEE D RS. 3 LAKHS. IN THE CASE OF CIT VS. MADHUKAR INAMDAR (HUF ) 318 ITR 149, THE HONBLE BOMBAY HIGH COURT HAS HELD THAT CB DT INSTRUCTION FIXING ANY MONETARY LIMIT FOR FILING TH E APPEAL WOULD APPLY EVEN FOR THE PENDING CASES. KEEPING IN VIEW T HE SAID DECISION OF HONBLE JURISDICTIONAL HIGH COURT AND T HE BOARD INSTRUCTION NO. 3 OF 2011 DATED 09/02/2011, WE HOLD THAT THE PRESENT APPEAL FILED BY THE DEPARTMENT INVOLVING TA X EFFECT OF LESS THAN RS. 3 LAKHS IS NOT MAINTAINABLE AND THE SAME I S, THEREFORE, DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 07/08/2013 UPON CONCLUSION OF HEARING. SD/- SD/- (SAKTIJIT DEY) (CHA NDRA POOJARI) JUDICIAL MEMBER ACCOUNTA NT MEMBER HYDERABAD, DATED: 7 TH AUGUST, 2013. 3 ITA NO. 627/HYD/13 M/S SUNDER TALKIES KV COPY TO:- 1) ITO, WARD 1, AAYAKAR BHAVAN, RAJIV GUNJ, KHAMMAM. 2) M/S SUNDER TALKIES, H.NO. 8-3-1, GANDHI CHOWK, KHAMMAM. 3) THE CIT (A), VIJAYAWADA. 4) THE CIT, VIJAYAWADA 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD