DCIT 8(2), MUMBAI V. HYDAC INDIA P. LTD, MUMBAI

ITA 6395/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55659 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2004-2005
• Appeal Filed On: 30-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

1 HYDAC INDIA P LTD IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI H BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI J SUDHAKAR REDDY, AM & SHRI VIJAY PAL RAO, JM ITA NO. 6395/MUM/2010 (ASST YEAR 2004-05 ) THE DY COMMR OF INCOME TAX 8(2), MUMBAI VS HYDAC INDIA P LTD 114 MAHAVFIR4 INDUSTRIAL ESTATE OFF: MAHAKALI CAVES RD, ANDHERI (E) MUMBAI 93 (APPELLANT) (RESPONDENT) PAN NO. AAACH 2910B ASSESSEE BY NONE REVENUE BY SHRI V V SHASTRI DT.OF HEARING 17 TH OCT 2011 DT OF PRONOUNCEMENT 21 ST , OCT 2011 PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 13 TH MAY 2011 ARISING FROM THE PENALTY ORDER U/D 271(1)( C) FOR T HE AY 2004-05. 2 WE HAVE HEARD THE LD DR AND CONSIDERED THE RELEVA NT MATERIAL ON RECORD. AS NOBODY APPEARED ON BEHALF OF THE RESPONDENT ASSESSE E DESPITE NOTICE SENT BY RPAD RETURNED BACK WITH THE POSTAL REMARKS LEFT; THEREFORE, WE PROPOSED TO HEAR THE LD DR AND DISPOSE OFF THIS APPEAL EX-PARTE. 3 AT THE OUTSET, WE FIND THAT THE TAX EFFECT INVOLV ED IN THIS APPEAL IS LESS THAN RS.3 LAKHS AS PER THE LIMIT PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO.3 OF 2011 FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL . IN SUCH A SITUATION THE APPEAL FILED IN CONTRAVENTION OF SUCH LIMIT CANNOT BE SUST AINED. THIS VIEW IS DULY SUPPORTED BY THE DECISION IN THE CASE OF ACIT VS. SATISH CHAN DRA, 10 SOT 383. SIMILAR VIEW HAS 2 HYDAC INDIA P LTD BEEN TAKEN BY THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CAMCO COLOUR CO. 254 ITR 565, WHEREIN IT HAS BEEN HELD THAT THE TAX EFFE CT INVOLVED IN THE APPEAL FILED BY THE REVENUE BEING LESS THAN THE MONETARY LIMIT AS P RESCRIBED IN BOARD CIRCULAR, THE SAME IS NOT MAINTAINABLE. 3.1 ACCORDINGLY, IN VIEW THE CIRCULAR OF 2011 AS AP PLICABLE TO THE APPEALS FILED EARLIER, THE HONBLE JURISDICTIONAL HIGH COURT HAS HELD IN THE CASE OF CIT VS MADHUKAR K INAMDAR (HUF) REPORTED IN 318 ITR 149 THAT THE AP PEALS FILED BY THE REVENUE PRIOR TO THE CIRCULAR SHALL ALSO BE GOVERNED THE MONETARY LIMIT OF THIS CIRCULAR. SIMILAR VIEW HAS BEEN REITERATED BY THE MUMBAI BENCH OF THE TRIB UNAL VIDE ORDER DATED 29.04.2011 IN ITO VS INDIA SAFETY VAULTS LTD., IN I TA NO. 648-651/M/2010. RESPECTFULLY FOLLOWING THE PRECEDENTS, WE HOLD THAT THE APPEAL F ILED BY THE REVENUE CANNOT BE TAKEN UP FOR DECISION ON MERITS AS THE TAX EFFECT I N THIS CASE IS ADMITTEDLY LESS THAN RS. 3.00 LACS. WE, THEREFORE, DISMISS THE APPEAL FI LED BY THE REVENUE AS NOT MAINTAINABLE. 4 IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 21 ST , DAY OF OCT 2011. SD/ SD/- ( J SUDHAKAR REDDY ) ACCOUNTANT MEMBER ( VIJAY PAL RAO ) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 21 ST , OCT2011 RAJ* 3 HYDAC INDIA P LTD COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI