ACIT, Madurai V. Smt. Rajhakoumari, Madurai

ITA 901/CHNY/2011

• Counselvise Citation: 90121714 RSA 2011
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2000-2001
• Appeal Filed On: 16-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B' BENCH, CHENNAI [BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER] I.T.A NO.901/MDS/2011 (ASSESSMENT YEAR : 2000-01 ) THE ACIT CIRCLE II MADURAI VS SMT. RAJHA KOUMARI 926, NALLAMUTHU PILLAI NEW ROAD KEERAITHURAI MADURAI [PAN ALWPR9241C ] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E.B RENGARAJAN, JR. STANDING COUNSEL RESPONDENT BY : NONE DATE OF HEARING : 28.7.2011 DATE OF PRONOUNCEMENT : 24.08.2011 O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE, FOR ASSESSMENT YEA R 2000-01, IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), MADUR AI, DATED 15.2.2011. 2. IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN ` 3 LAKHS. INSTRUCTION NO.3 OF 2011 DATED 9 TH FEB.,2011 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER SEC.268A(1) OF THE ITA 901/11 :- 2 -: INCOME-TAX ACT, 1961, HAS GIVEN DIRECTIONS NOT TO F ILE APPEALS BEFORE THE INCOME-TAX APPELLATE TRIBUNAL WHERE THE TAX EFF ECT DOES NOT EXCEED ` 3 LAKHS. 3. THE FIRST INSTRUCTION NO.1093 DATED 28.10.1992 ISSUED BY THE BOARD, HAD LAID DOWN SUCH LIMIT AT ` 25,000/-. THEREAFTER THROUGH INSTRUCTION NO. 1979 DATED 27.3.2000, THE SAID LIMI T WAS ENHANCED TO ` 1,00,000/-. SUBSEQUENTLY THE LIMIT WAS AGAIN INCRE ASED TO ` 2 LAKHS THROUGH INSTRUCTION NO.2 DATED 24.10.2005. 4. IN THE LIGHT OF THE ABOVE EARLIER INSTRUCTIONS, WHEN THE APPEALS WERE DISPOSED OF BY THE TRIBUNAL IN LIMINE ON THE G ROUND OF NON- MAINTAINABILITY, ISSUES WERE TAKEN UP BEFORE THE HO N'BLE HIGH COURTS. THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V S CAMCO COLOUR CO. (254 ITR 565) HAS HELD THAT WHERE THE REVENUE EFFECT INVOLVED IN THE APPEAL IS BELOW THE PRESCRIBED LIMIT, THE APPEA L IS NOT MAINTAINABLE BEFORE THE APPELLATE TRIBUNAL. THEREAFTER THE HON' BLE MADRAS HIGH COURT IN CWT VS. ANNAMALI (258 ITR 675) HELD THAT T HE LIMIT PRESCRIBED IN THE LATEST INSTRUCTION IS APPLICABLE NOT ONLY TO THE APPEALS TO BE FILED AFTER THE ISSUE OF SUCH INSTRUCTIONS, BUT ALSO APPL ICABLE TO THE PENDING APPEALS. THIS VIEW WAS AGAIN FOLLOWED BY THE HON'B LE MADRAS HIGH COURT IN THE CASE OF CIT VS ASSOCIATED ELECTRICAL AGENCIES (295 ITR 496). THE HON'BLE BOMBAY HIGH COURT ALSO HAS HELD THE SAME VIEW IN ITA 901/11 :- 3 -: THE CASE OF CIT VS PITHWA ENGG. WORKS (276 ITR 519 ) AND IN THE CASE OF CIT VS ZOEB Y. TOPPIWALA (284 ITR 379). 5. THUS, THE COURTS HAVE CONSISTENTLY HELD THAT WHE RE THE TAX EFFECT IS LESS THAN THE PRESCRIBED LIMIT, APPEALS ARE NOT MAINTAINABLE BEFORE THE TRIBUNAL AND HAVE ALSO HELD THAT THE LATEST SUC H INSTRUCTIONS ARE APPLICABLE EVEN TO THE PENDING APPEALS. 6. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THIS APPEAL IS NOT MAINTAINABLE BEFORE THE TRI BUNAL. ACCORDINGLY, THE APPEAL IS DISMISSED IN LIMINE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24. 08.2011. SD/- SD/- (ABRAHAM P GEORGE) ACCOUNTANT MEMBER ( HARI OM MARATHA ) JUDICIAL MEMBER DATED: 24 TH AUGUST, 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR