D.C.I.T 1(2), MUMBAI V. POTASH FERTIISERS PVT. LTD., MUMBAI

ITA 7121/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0667 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 05-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J
• Assessee Lawyers: R M SAVANT
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI . . , . , BEFORE SHRI I.P. BANSAL, JM AND RAJENDRA, AM ./ I.T.A. NO.7121/MUM/2013 ( / ASSESSMENT YEAR : 2004-05 THE DCIT 1(2), ROOM NO.535, 5 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI 400 020 / VS. M/S. POTASH FERTILIZERS PVT. 6, LOTUS HOUSE, JAMSHEDJI TATA ROAD, MUMBAI 400 055. ./ ./ PAN/GIR NO. : AAACP 6275B ( / APPELLANT ) .. ( / RESPONDENT ) A PPELLANT BY SHRI PREMANAND J RESPONDENT BY SHRI R.M. SAVANT ' #$ / DATE OF HEARING : 06/05/2015 ' #$ / DATE OF PRONOUNCEMENT : 06/05/2015 / O R D E R PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE REVENUE AND IT IS D IRECTED AGAINST ORDER PASSED BY LD. CIT(A)-7, MUMBAI DATED 11.09.2013 FOR ASSESSMENT YEAR 2004-05. GROUNDS OF APPEAL READ AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE IN LAW, THE LD. CIT(A) ERRED IN DELETING THE PENALTY U/S. 271(1) (C) OF RS.4,00, 000/- 2. AT THE OUTSET IT WAS SUBMITTED BY LD. AR THAT TH E TAX EFFECT INVOLVED IN THE PRESENT APPEAL DOES NOT EXCEED MONETARY LIM IT OF RS. 4.00 LACS AS DESCRIBED IN THE CBDT INSTRUCTION NO.5/2014 (F.N O.279/MISC.142/2007- ITJ(PT)], VIDE WHICH THE TAX EFFECT LIMIT FOR FILIN G THE APPEAL BEFORE THE TRIBUNAL WAS ENHANCED FROM RS.3.00 LACS TO RS.4.00 LACS. ./ I.T.A. NO.7121/MUM/2013 ( / ASSESSMENT YEAR : 2004-05 2 3. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES. HOWEVER, ACCORDING TO FOLLOWING DECISIONS OF HONBLE JURISD ICTIONAL HIGH COURT, SUCH NOTIFICATIONS ISSUED UNDER SECTION 268A WOULD BE AP PLICABLE EVEN TO THE APPEALS FILED BEFORE ISSUE OF THE NOTIFICATION IF THE LIMIT IS ENHANCED: 1. IN THE CASE OF CIT VS. SMT. VIJAYA KAVEKAR (201 3 30 TAXMANN.COM 412) IT WAS HELD AS UNDER: SECTION 260A, READ WITH SECTION 268A, OF THE INCOME -TAX ACT, 1961 - HIGH COURT - APPEALS TO - TAX EFFECT - WHETH ER INSTRUCTION NO. 3 OF 2011, DATED 9-2-2011, SPECIFYING MONETARY LIMIT OF RS. 10 LAKHS FOR MAINTAINABILITY OF APPEAL BEFORE HIGH COURT IS APPLICABLE ON PENDING APPEALS AS WELL - HELD, YES - WHETHER, THEREFORE, WHERE TAX EFFECT IN REVENUES APPEALS WA S LESS THAN RS. 10 LAKHS WHICH WAS FILED EVEN PRIOR TO ISSUE OF INSTRUCTION DATED 9-2-2011, SAME WAS TO BE DISMISSED BEING NON- MAINTAINABLE - HELD, YES [IN FAVOUR OF ASSESSEE ] 2. IN THE CASE OF CIT VS. MADHUKAR IMANDAR (2009 1 85 TAXMAN 101] IT WAS HELD AS UNDER: SECTION 268A, READ WITH SECTION 119, OF THE INCOME- TAX ACT, 1961 - APPEAL OR APPLICATION FOR REFERENCE - FILING OF, BY INCOME-TAX AUTHORITY - WHETHER CIRCULAR/INCOME-TAX INSTRUCTION NO. 5 OF 2008, DATED 15-5-2008 ISSUED BY CBDT DIRECTING INCOME-TAX AUTHORITIES NOT TO FILE APPEALS IF TAX EFFECT IS LESS THAN RS. 4 LAKHS WOULD BE APPLICABLE TO CASES PENDING BEFORE HIGH COURT AS ON 15-5-2008 EITHER FOR ADMISSION OR FOR FINAL DISPOSAL, EVEN TH OUGH SAID APPEALS AND/OR PETITIONS WERE FILED BEFORE HIGH COU RT PRIOR TO 15- 5-2008 - HELD, YES 4. IN THIS VIEW OF THE SITUATION, WE DISMISS THE APPEAL FILED BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT AS PER AFOREME NTIONED INSTRUCTION ISSUED BY CBDT. ORDER PRONOUNCED IN THE OPEN COURT ON 06/05/2015 ' * +, 06/05/2015 ' SD/- SD/- (RAJENDRA) . . (I.P.BANSAL) /ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; + DATED 06/05/2015 ./ I.T.A. NO.7121/MUM/2013 ( / ASSESSMENT YEAR : 2004-05 3 !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. /# ( ) / THE CIT(A)- 4. /# / CIT 5. 01 #23 , $ 23 , / DR, ITAT, MUMBAI 6. 4 / GUARD FILE. / BY ORDER, 0# # //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . . .VM , SR. PS