ITO (IT) 3(1), MUMBAI V. RAMESH I. BHATIA, MUMBAI

ITA 752/MUM/2012

• Counselvise Citation: 75219914 RSA 2012
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 25-04-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 03-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K JALALI
• Keywords: Cost of acquisition; Fair market value; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: MUMBAI BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.752/MUM/2012 (ASSESSMENT YEAR: 2008-09) INCOME-TAX OFFICER -3(1), R. NO.114, SCINDIA HOUSE, BALLARD PIER, MUMBAI -400 038 ...... APPELLANT VS SHRI RAMESH ISSARDAS BHATIA, 8, RISHBHDEV, VALLABH, BAUG LANE, GHATKOPAR (E), MUMBAI -400 077 ..... RESPONDENT PAN: AKQPB 6825 Q APPELLANT BY: SHRI R.K. JALALI RESPONDENT BY: NONE DATE OF HEARING: 25.04.2012 DATE OF PRONOUNCEMENT: 30.04.2012 O R D E R R.S. PADVEKAR , JM : IN THIS APPEAL REVENUE HAS CHALLENGED THE ORDER OF THE LD. CIT (A)-10, MUMBAI FOR THE A.Y. 2008-09 DATED 14.11.201 1. THE REVENUE HAS TAKEN THE FOLLOWING EFFECTIVE GROUND: 1. GROUNDS OF APPEAL BEFORE THE CIT (A) CONSIST OF FOUR IN WHICH MAIN ISSUED WAS THAT THE COST OF ACQUISITION OF THE PROPERTY THE INDEXATION TAKEN BY THE AO FOR THE A.Y . 1994- 95 IN THE DATE OF INHERITANCE OF THE PROPERTY BY TH E ASSESSEE FROM HIS MOTHER AFTER HER DEATH AS FIRST O WNER, ASSESSEE HAS TAKEN COST OF INDEXATION FROM 01/04/19 81 AS FAIR MARKET VALUE SINCE THE PROPERTY HAS ACQUIRE D HER MOTHER IN THE YEAR 1972. 2. I HAVE HEARD THE PARTIES. IT IS SEEN THAT THE T OTAL INCOME COMPUTED BY THE A.O. AS PER THE ASSESSMENT ORDER P ASSED U/S.143(3) ITA 752/M/2012 SHRI RAMESH ISSARDAS BHATIA 2 DATED 27.12.2012 IS ` 2,57,070/-. THUS THE TAX EFFECT IN THIS APPEAL IS LESS THAN ` 3 LAKHS AND WHICH IS BELOW MINIMUM MONETARY LIMIT AS PER THE INSTRUCTIONS ISSUED BY THE CBDT, FOR FILING THE APPEAL BEFORE THE TRIBUNAL. IN THE PRESENT CASE, QUANTUM OF PENA LTY IS ` 2,57,070/- WHICH IS BELOW ` 3 LAKHS. THE C.B.D.T. HAS ISSUED INSTRUCTIONS TO ALL THE CHIEF COMMISSIONERS/COMMISSIONERS THAT WHERE TH E TAX EFFECT IS LESS THAN ` 3 LAKHS, THEN THE APPEAL SHOULD NOT BE FILED IN TH E TRIBUNAL. MOREOVER, INSTRUCTIONS ISSUED BY THE CBD T PUTTING CEILING FOR APPROACHING THE TRIBUNAL HAS BEEN CONSIDERED BY HONBLE HIGH COURT OF BOMBAY IN THE CASE OF CIT VS. PITHWA ENGIN EERING 276 ITR 519 AND HELD THAT INSTRUCTION IS APPLICABLE TO PEND ING APPEALS ALSO. MOREOVER IN THE CASE OF MADHUKAR K. INAMADAR 318 IT R 149 (BOM) THEIR LORDSHIPS HAVE HELD THAT THE CIRCULAR NO.3 OF THE CBDT DATED 09.01.2011 IS APPLICABLE TO THE APPEALS PENDING FOR ADMISSION OR FOR FINAL DISPOSAL. AS PER THE SAID INSTRUCTIONS PRESE NT APPEAL IS NOT MAINTAINABLE AS A.O. HAS NO AUTHORITY TO FILE THE S AME. I, THEREFORE, RESPECTFULLY FOLLOWING THE DECISIONS OF THE HONBLE JURISDICTIONAL HIGH COURT, CITED SUPRA , DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. 3. FURTHER, I FIND THAT THE ISSUE IS ALSO COVERED O N MERIT IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE BOMB AY HIGH COURT IN THE CASE OF CIT VS. MANJULA J. SHAH IN ITA NO.3378 OF 2010 JUDGMENT DATED 11.10.2011 HENCE, ON MERIT ALSO THE REVENUE H AS NOT CASE. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 3 0TH APRIL, 2012. SD/- ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 30TH APRIL, 2012 ITA 752/M/2012 SHRI RAMESH ISSARDAS BHATIA 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)-10, MUMBAI. 4) THE DIT (INTERNATIONAL TAXATION)-II, MUMBAI. 5) THE D.R. SMC BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN