DCIT 9(1), MUMBAI V. DREAMWORKS ENTERTINMENT & SOFTWARE LTD, MUMBAI

ITA 918/MUM/2011

• Counselvise Citation: 91819914 RSA 2011
• Duration Of Justice: 2 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-08-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 01-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J K GARG
• Assessee Lawyers: RASHMIKANT C MOD I
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'D' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO. 918/MUM/2011 (ASSESSMENT YEAR: 2006-07) ACIT, RANGE 9(1) M/S. DREAMWORKS ENTERTAINMENT ROOM NO. 223, AAYAKAR BHAVAN & SOFTWARE LTD. M.K. ROAD, MUMBAI 400020 VS. B-3, SHRINIVAS, M.G. ROAD GOREGAON (W), MUMBAI 400062 PAN - AABCD0458P APPELLANT RESPONDENT APPELLANT BY: SHRI J.K. GARG RESPONDENT BY: SHRI RASHMIKANT C. MODI DATE OF HEARING: 26.08.2013 DATE OF PRONOUNCEMENT: 26.08.2013 O R D E R PER D. MANMOHAN, V.P. THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 02.11.2010 PASSED BY THE CIT(A)-19, MUMBAI AND IT PERTAINS TO A.Y. 2006-07. 2. REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEA L: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN CANCELLING THE PENALTY OF RS.2, 80,779/- IMPOSED U/S. 271(1)(C) OF THE I.T. ACT, 1961 DISREG ARDING THE FACT THAT THE ASSESSEE HAD ACCEPTED THE ADDITION MADE IN THE QUANTUM ASSESSMENT WITH REGARD TO THE COMPUTATION OF CAPITA L GAIN AND THAT SUCH ACCEPTANCE BY THE ASSESSEE WAS A CONSEQUE NCE OF THE DISCOVERY OF FURNISHING INACCURATE PARTICULARS MADE BY THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS . 3. DURING THE COURSE OF HEARING IT IS NOTICED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW THE PRESCRIBED LIMIT, I.E. RS.3 LAKHS AS PER THE LIMIT PRESCRIBED BY THE CBDT VIDE INSTRUCTION NO. 3 OF 20 11 FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL. IN SUCH A SITUATIO N THE APPEAL FILED IN CONTRAVENTION OF SUCH LIMIT CANNOT BE SUSTAINED. TH IS VIEW IS DULY SUPPORTED BY THE DECISION IN THE CASE OF ACIT VS. SATISH CHAN DRA, 10 SOT 383. SIMILAR ITA NO. 918/MUM/2011 DREAMWORKS ENTERTAINMENT & SOFTWARE LTD. 2 VIEW HAS BEEN TAKEN BY THE HON'BLE BOMBAY HIGH COUR T IN THE CASE OF CIT VS. CAMCO COLOUR COMPANY 254 ITR 565, WHEREIN IT WA S HELD THAT THE TAX EFFECT INVOLVED IN THE APPEAL FILED BY THE REVENUE BEING LESS THAN THE LIMIT PRESCRIBED BY CBDT, THE SAME IS NOT MAINTAINABLE. 4. HAVING CAREFULLY CONSIDERED THE RIVAL SUBMISSION S AND FROM A CAREFUL PERUSAL OF THE AFORESAID JUDGMENTS IN WHICH IT HAS BEEN HELD THAT IF THE REVENUE FILES AN APPEAL CONTRARY TO THE INSTRUCTION S ISSUED BY THE CBDT, WHICH ARE BINDING UPON THE REVENUE, THE SAME IS LIA BLE TO BE DISMISSED BEING NOT MAINTAINABLE. THEREFORE, WE ARE OF THE VI EW THAT THE APPEAL DESERVES TO BE DISMISSED IN LIMINE BEING FILED CONT RARY TO THE INSTRUCTIONS OF CBDT AND WE DISMISS THE SAME. 4. IN THE RESULT, AS PRONOUNCED IN THE OPEN COURT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH AUGUST, 2013. SD/- SD/- (RAJENDRA) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATED: 26 TH AUGUST, 2013 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 19, MUMBAI 4. THE CIT 9, MUMBAI CITY 5. THE DR, D BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.