DCIT 7(1), MUMBAI V. PRABHUDAS LILLADHAR ADVISORY SERVICES P.LTD, MUMBAI

ITA 7130/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88234 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 04-06-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 29-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J
• Assessee Lawyers: NISHIT GANDHI AR
• Keywords: Tax effect
• Section: 14A

Judgement Text

, , , , C IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C, MUMBAI . . , ! '' , # BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO.7130/M/2012 ( & ' & ' & ' & ' / ASSESSMENT YEAR; 2009-10) DCIT 7(1) R. NO.622, AAYAKAR BHAVAN, M.K. RD. CHURCHGATE MUMBAI 400 020 & & & & / VS. M/S. PRABHUDAS LILLADHAR ADVISORY SERVICS PVT. LTD. 3 RD FLOOR, SADHANA HOUSE, 570, P.B. MARG WORLI MUMBAI 400018 PAN: AACCP1090J ( () / APPELLANT) ( *+() / RESPONDENT) REVENUE BY : SHRI PREMANAND J. (DR) ASSESSEE BY : SHRI NISHIT GANDHI (AR) & , -. / DATE OF HEARING : 11.12.2015 /0' , -. / DATE OF PRONOUNCEMENT : 06 .02.2015 / O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED OF THE COMMISSIONER OF INCOME TAX (APPEALS) [(HEREI NAFTER REFERRED TO AS CIT(A)] AGITATING THE DELETION OF THE DISALLOWANCE OF 20,58 ,502/- WHICH WAS MADE BY THE AO UNDER SECTION 14A READ WITH RULE 8D OF THE INCOME T AX ACT. 2. AT THE OUTSET, THE LD. A.R. OF THE ASSESSEE HAS STATED THAT THE ADDITION IN THIS CASE WAS MADE BY THE AO OF RS.10,49,181/- ONLY. OUT OF THE TOTAL DISALLOWANCE COMPUTED BY THE AO U/S.14A OF THE ACT AN AMOUNT OF RS.10,49,181/- HAD BEEN SUO- MOTO OFFERED BY ASSESSEE. THE LD. CIT(A) HAS DELETE D THE ADDITION OF RS.10,49,181/- ONLY AND NOT OF RS.2050,502/-. HE HAS FURTHER STATE D THAT THE TAX EFFECT IN THIS APPEAL ITANO.7130/M/2012 2 IS LESS THAN RS.4 LAKHS WHICH IS BELOW THE PRESCRIB ED LIMIT FOR FILING THE APPEAL BEFORE THE TRIBUNAL AS PER THE CBDT CIRCULAR NO.5 DATED 10 .07.14. LD. D.R. HAS FAIRLY ADMITTED THAT THE TAX EFFECT IN THIS APPEAL IS BELO W THE PRESCRIBED LIMIT OF RS.4 LAKHS. 3. SINCE THE TAX EFFECT IN THE PRESENT APPEAL IS B ELOW PRESCRIBED LIMIT, THEREFORE, WE ARE OF THE VIEW THAT THE APPEAL OF THE REVENUE I S NOT MAINTAINABLE. THE CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE INSTRUCTION NO.5 DATED 10.07.2014, ISSUED UNDER SECTION 268A OF THE ACT, HAS PRESCRIBED THE MONETAR Y LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT WHERE TAX EFFECT IS LESS THAN RS.4 L AKHS. THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF 'MADHUKAR INAMDAR' - 185 TAXMA NN. 101 HAS HELD THAT CBDT CIRCULAR IS APPLICABLE WHERE THE APPEALS ARE PENDIN G AND NOT ONLY TO THE APPEALS WHICH ARE TO BE FILED AFTER THE CIRCULAR WAS ISSUED . SIMILAR VIEW HAS BEEN ADOPTED BY THE CO- ORDINATE BENCHES OF THIS TRIBUNAL IN THE CA SE OF 'ITO VS. SURENDERMAL R. LODHA' IN ITA NO.1628/MUM/11 FOR THE ASSESSMENT YEA R 2004-05 DECIDED ON 25.08.14 AND FURTHER IN THE CASE OF 'ITO VS. SHRI K ULDEEP GANESH HAKE' IN ITA NO.4284/M/2013 FOR THE ASSESSMENT YEAR 2008-09 DECI DED ON 17.09.2014. IN VIEW OF THE AFOREMENTIONED INSTRUCTIONS OF THE CBDT AND THE ABOVE JUDICIAL DECISIONS ON THE ISSUE, SINCE THE TAX EFFECT IN THE APPEAL OF TH E REVENUE IS BELOW THE PRESCRIBED LIMIT, THEREFORE, THE PRESENT APPEAL OF THE REVENU E IS NOT MAINTAINABLE, CONSEQUENTLY, THE SAME IS HEREBY DISMISSED 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED AS NOT MAINTAINABLE. ORDER PRONOUNCED IN THE OPEN COURT ON 06 .02.2015. , /0' 1 2&3 06.02.2015 0 , ' SD/- SD/- ( . . / R.C.SHARMA ) ( ! '' / SANJAY GARG) / ACCOUNTANT MEMBER / JUDICIAL MEMBER /MUMBAI ; 2& / DATED 06 .02.2015 * PATEL ITANO.7130/M/2012 3 , *-4 54'- , *-4 54'- , *-4 54'- , *-4 54'-/ COPY OF THE ORDER FORWARDED TO : 1. () / THE APPELLANT 2. *+() / THE RESPONDENT. 3. 6 ( ) / THE CIT(A)- 4. 6 / CIT 5. 49' *-& , , / THE DR CONCERNED BENCH , 6. ': ; / GUARD FILE. & & & & / BY ORDER, +4- *- //TRUE COPY// < <<