ITO 2(1), MUMBAI V. EWART INVESTMENTS LTD, MUMBAI

ITA 7257/MUM/2012

• Counselvise Citation: 725719914 RSA 2012
• Duration Of Justice: 1 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 06-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK SURI
• Assessee Lawyers: M M GOLVALA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI . . , , , BEFORE SHRI B.R. B ASKARAN , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEMBER . / ITA NO. 7257 / MUM./ 2012 ( / ASSESSMENT YEAR : 20 0 9 10 ) ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 2 (1), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .. / APPELLANT V/S EWART INVESTMENTS LTD. EWA RT HOUSE, 22 HOMI MODI STREET FORT, MUMBAI 400 001 .... / RESPONDENT . / PERMANENT ACCOUNT NUMBER AAACD2546C / REVENUE BY : MR. ASHOK SURI / ASSESSEE BY : MR. M.M. GOLVALA / DATE OF HEARING 1 3 . 0 2 .201 4 / DATE OF ORDER 14.02.2014 / ORDER , / PER AMIT SHUKLA , J.M. THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENUE CHALLENGING THE IMPUGNED ORDER DATED 17 TH SEPTEMBER 2012 , PASSED BY THE COMMISSIONER (APPEALS) I V , MUMBAI, FOR THE QUANTUM OF ASSESSMENT PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ) FOR THE ASSESSMENT YEAR 20 0 9 10 , VIDE WHICH, FOLLOWING G ROUNDS HAVE BEEN RAISED: EWART INVESTMENTS LTD. 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN GRANTING RELIEF ON ACCOUNT OF EXPENSES RELATING TO PROVIDING OF SERVICES TO THE ASSESSEE THEREBY OVERLOOKING THE FACT THAT DEDUCTION UND ER THIS HEAD OF INCOME ARE CLEARLY SPECIFIED, FURTHER EXPENSES ARE NOT ALLOWABLE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN ALLOWING RELIEF TO THE ASSESSEE IN THE TAXABLE HOUSE PROPERTY INCOME BY DIRECTING THE EXCLUSION OF THE QUANTUM RELATING TO SERVICE RENDERED FROM THIS HEAD OF INCOME WHEN THE ASSESSEE HAD OFFERED THE ENTIRE SUM FOR TAXATION UNDER THE HEAD INCOME FROM HOUSE PROPERTY . 2 . AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE ONLY DISPUTED ISSUE IS WITH REGARD TO THE RELIEF OF ALLOWANCE OF EXPENDITURE OF ` 1,60,239, THE TAX ON WHICH COMES TO ` 49,514, WHICH IS FAR BELOW THE PRESCRIBED MONITORY LIMIT OF ` 3,00,000 FOR FILING APPEAL BY THE REVENUE BEFORE THE TRIBUNAL. A REFERENCE WAS MADE TO CBDT INSTRUCTION NO.3 OF 2011 DATED 9 TH FEBRUARY 2011. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, DID NOT RAISE ANY OBJECTION TO THE SUBMISSIONS MADE BY THE LEARNED COUNSEL. 3 . AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE, WE FIND THAT AS PER CBDT INSTRUCTION NO.3 OF 2011, DATED 9 TH FEBRUARY 2011, THE APPEAL BEFORE THE APPELLATE TRIBUNAL CAN BE FILED BY THE REVENUE, WHEN THE TAX EFFECT EXCEEDS THE MONITORY LIMIT OF ` 3,00,000. ONCE IT IS NOT DISPUTED THAT TAX EFFECT IS ONLY ` 49,514, WHICH IS MUCH BELOW THE PRESCRIBED LIMIT, THEN IN VIEW OF THE CBDT INSTRUCTIONS, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AND, HENCE, IT IS DISMISSED. 4 . 4 . IN THE RESULT, REVENUES APPEAL IS DISMISSED. 14 TH FEBRUARY 2014 ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH FEBRUARY 2014 SD / - . . B.R. B ASKARAN ACCOUNTANT MEMBE R SD / - AMIT SHUKLA JUDICIAL MEMBER MUMBAI, DATED : 14 TH FEBRUARY 2014 EWART INVESTMENTS LTD. 3 / COPY OF THE ORDER FORWARDED TO : ( 1 ) / THE ASSESSEE ; ( 2 ) / THE REVENUE; ( 3 ) ( ) / THE CIT(A ) ; ( 4 ) / THE CIT, MUMBAI CITY CONCERNED ; ( 5 ) , , / THE DR, ITAT, MUMBAI ; ( 6 ) / GUARD FILE . / TRUE COPY / BY ORDER . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI