DCIT 1(1), MUMBAI V. BHARAT CONTAINERS P. LTD, MUMBAI

ITA 8213/MUM/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71243 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 26-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR DURGESH SUMROTT
• Assessee Lawyers: SATENDRA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'B' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO. 8213/MUM/2010 (ASSESSMENT YEAR: 2006-07) D C I T - 1(1) M/S. BHARAT CONTAINERS P. LTD. ROOM NO. 597, AAYAKAR BHAVAN 1ST FLOOR, CECIL COURT M.K. ROAD, MUMBAI 400020 VS. MAHAKAVI BHUSHAN MARG MUMBAI 400039 PAN - AAACB0484G PAN - AAACB0484G APPELLANT RESPONDENT APPELLANT BY: DR. DURGESH SUMROTT RESPONDENT BY: S/SHRI K. GOPAL & SATENDRA PANDEY DATE OF HEARING: 07.10.2013 DATE OF PRONOUNCEMENT: 07.10.2013 O R D E R PER D. MANMOHAN, V.P. THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 19.07.2010 PASSED BY THE CIT(A)-1, MUMBAI AND IT PERTAINS TO A .Y. 2006-07. 2. REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPE AL: - 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) ERRED IN LAW, IN DIRECTING TO ALLOW CLAIM OF EXPENSES AGAINS T INCOME FROM OTHER SOURCES DISALLOWED BY THE AO. 2. THE CIT(A) HAS FURTHER OVERLOOKED THE FACT THAT THE ASSESSEE HAS NOT ESTABLISHED THE NEXUS OF EXPENSES WITH REFERENC E TO THE INCOME EARNED FROM OTHER SOURCES. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE TAX EFFECT IN THE INSTANT CASE WORKS OUT TO ` 2,10,289/-. AS PER CBDT CIRCULAR NO. 3 DATED 09.02.2011 AN APPEAL SHOULD NOT BE PREFERRED BY REV ENUE UNLESS THE TAX EFFECT IS ABOVE ` 3,00,000/- OR THE ISSUE ARISING OUT OF THE ORDER OF THE FIRST APPELLATE AUTHORITY IS EXCEPTIONAL IN NATURE AND IT IS SPECIFICALLY MENTIONED IN THE AUTHORISATION. IN THE ABSENCE OF SHOWING THA T THE CASE FALLS UNDER ITA NO. 8213/MUM/2010 M/S. BHARAT CONTAINERS P. LTD. 2 EXCEPTIONAL CIRCUMSTANCE THE APPEAL FILED BY REVENU E DESERVES TO BE DISMISSED AS UNADMITTED. 4. ON THE OTHER HAND, THE LEARNED D.R. SUBMITTED TH AT THE APPEAL IS DULY AUTHORISED BY THE COMMISSIONER OF INCOME TAX AND HE NCE THE AO WAS JUSTIFIED IN FILING THE APPEAL. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS AND PERUSED THE RECORD. IN THE LIGHT OF THE CIRCULAR ISSUED BY THE CBDT (SUPRA), WHICH IS BINDING UPON THE REVENUE AUTHORITIES, THIS APPEAL D ESERVES TO BE DISMISSED AS UNADMITTED FOR WANT OF TAX EFFECT AND WE ORDER A CCORDINGLY. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH OCTOBER, 2013. SD/- SD/- (SANJAY ARORA) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATED: 7 TH OCTOBER, 2013 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 1, MUMBAI 4. THE CIT 1, MUMBAI CITY 5. THE DR, B BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.