The ACIT(OSD)., Circle-8, Ahmedabad V. Shrirangam Enterprises (P) Ltd., Ahmedabad

ITA 937/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85538 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-01-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 30-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: S N DIVATIA
• Keywords: Depreciation; Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI N. S. SAINI, ACCOUNTANT MEMBER. ITA.NO.937/AHD/2011 (ASSESSMENT YEAR:2007-08) A.C.I.T. (OSD), CIRCLE-8, AHMEDABAD APPELLANT VS. SHRIRANGAM ENTERPRISES (P) LTD. 504, SHAPATH II, OPP. RAJPATH CLUB, SARKHEJ, GANDHINAGAR HIGHWAY, BODAKDEV, AHMEDABAD RESPONDENT PAN: AAHCS2730B /BY APPELLANT : SHRI DINESH SINGH, SR. D.R. /BY RESPONDENT : SHRI S. N. DIVATIA, A.R. !'# /DATE OF HEARING : 08.01.2015 $%& !'# /DATE OF PRONOUNCEMENT : 09.01.2015 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-XIV, I.T.A. NO. 937/AHD/11 A.Y. 07-08 [ACIT (OSD) VS. SHRIRANGAM ENTERPRISES (P) LTD.] PAGE 2 AHMEDABAD, DATED 13.12.2010 FOR A.Y. 2007-08 ON THE FOLLOWING GROUNDS: [1]. THE LD, CIT(A)-XIV, AHMADABAD ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF RS.53,647/- M ADE BY THE ASSESSING OFFICER ON ACCOUNT OF MOTOR CAR EXPENSES. [2]. THE LD, CIT[A]-XIV, AHMEDABAD HAS ERRED AND ON FACTS IN DELETING THE DISALLOWANCE OF RS. 1,47,583/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DEPRECIATION ON MOTORCAR. [3]. THE LD. CIT[A]-XIV, AHMEDABAD HAS ERRED AND O N FACTS IN DELETING THE ADDITION OF RS.2,00,000/- MADE BY T HE ASSESSING OFFICER, BEING ADVANCE IN THE NAME OF MS. NEETA S. PATEL. [4]. THE LD. CIT[A]-XIV, AHMEDABAD HAS ERRED AND ON FACTS IN DELETING THE ADDITION OF RS.10,650/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF STOCK. [5]. THE LD. CIT[A]-XIV, AHMEDABAD HAS ERRED AND ON FACTS IN DELETING THE DISALLOWANCE OF RS 5,00,000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF TRAVELLING EXPENSES. 2. IN THIS CASE, THE REVENUE HAS COME IN APPEAL ON ACCOUNT OF VARIOUS ADDITIONS DELETED BY CIT(A) AND MADE BY THE ASSESSING OFFICER. THE ASSESSMENT YEAR IN THE APPE AL IS 2007- 08. THE TAX EFFECT ON THE DELETED ADDITIONS IS LES S THAN THE THRESHOLD LIMIT, I.E. RS.4 LACS. THE APPEAL HAS BE EN FILED ON 30.03.2011. 3. WE FIND THAT THE TAX EFFECT IN THIS CASE IS LES S THAN RS.4 LACS. AS PER THE RECENT CBDT INSTRUCTION NO.5/2014 DATED 10.07.2014, THE REVENUE IS NOT PERMITTED TO FILE A PPEAL BEFORE I.T.A. NO. 937/AHD/11 A.Y. 07-08 [ACIT (OSD) VS. SHRIRANGAM ENTERPRISES (P) LTD.] PAGE 3 THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS. 4 L AVD. WE FIND SUPPORT FROM THE DECISION OF HONBLE SUPREME COURT DATED 25.03.2011 IN ITA NOS. 3 TO 5/2010. LD. DEPARTMENT AL REPRESENTATIVE FOR THE REVENUE SUBMITTED THAT INS TRUCTION NO. 5/2014 IS NOT APPLICABLE FOR THE APPEALS FILED PRI OR TO ISSUE OF THE SAID INSTRUCTIONS. IT IS ALSO SUBMITTED THAT THE FULL BENCH OF PUNJAB & HARYANA HIGH COURT IN THE CASE OF CI T VS. VIRENDRA CONSTRUCTION CO., 239 CTR 1, HELD THAT REVISED MONETARY LIMITS ARE NOT APPLICABLE TO THE PENDING APPEALS, AND IT IS IN FAVOUR OF THE REVENUE. 4. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH TH E MATERIAL AVAILABLE ON RECORD. INSTRUCTION NO.5/201 4 DATED 10.07.2014 HAS REVISED THE MONETARY LIMIT FOR FIL ING THE APPEAL BY THE DEPARTMENT BEFORE INCOME-TAX APPELLAT E TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPRE ME COURT. MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE TRI BUNAL IS RS. 4 LACS; BEFORE HONBLE HIGH COURT RS. 10 LACS AND BE FORE HONBLE SUPREME COURT RS. 25 LACS. HONBLE SUPREME COURT IN THE ORDER DATED 25.03.2011 REFERRED TO ABOVE HAS HELD AS UNDER:- IT IS STATED THAT THE TAX IMPACT IN THE PRESENT CASES IS LESS THAN RS. 10.00 LACS. THE DEPARTMENT HAS RECENTLY ISSUED AN INSTRUCTION BEARING NO. 3/2011 DATED 09.02.2011, WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING N O. 5/2008 DATED 15.05.2008 EXCEPT THAT IN SO FAR AS THE HIGH COURT IS CONCERNED, THE MONETARY LIMIT IN RESPECT OF APPEALS WHERE THE QUESTIONS OF LAW RAISED NEED NOT TO BE ANSWERED, HAS BEEN RAISED FROM RS. 4.00 LACS TO RS. 10.00 LACS . I.T.A. NO. 937/AHD/11 A.Y. 07-08 [ACIT (OSD) VS. SHRIRANGAM ENTERPRISES (P) LTD.] PAGE 4 THE DIVISION BENCH OF THIS COURT IN ITA NO. 89/1999 DECIDED ON 28.01.2011 HAS ALREADY HELD THAT THE INSTRUCTION BEARING NO. 5/2008 DATED 15.05.2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD THUS NATURALLY EQUALLY APPLY TO THE INSTANT INSTRUCTION BEARING NO.3/2011 DATED 09.02.2011, AS WELL. THE TAX EFFECT BEING LESS THAN RS. 10.00 LACS, THE QUESTION OF LAW DOES NOT REQUIRE TO BE ANSWERED. THE APPEALS ARE DISPOSED OF ACCORDINGLY. 4.1 HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008 DATED 03.03.20 11 HAS HELD AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS. 4,65,860/-. AS PER THE RECENT GUIDELINES OF THE CBDT, APPEAL IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS. 10.00 LACS, ARE NOT TO BE ENTERTAINED. THIS COURT IN THE CASE OF CIT, DELHI-III VS. M/S P.S. JAIN & CO., BEING ITA NO. 179/1991 DECIDED ON 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES. 4.2 IN VIEW OF THE ABOVE, INSTRUCTION NO. 5/2014 D ATED 10.07.2014 WILL APPLY TO ALL PENDING APPEALS. RESPECTFULLY FOLLOWING THE PRECEDENT, IT IS HELD THAT THE AP PEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFE CT IS LESS THAN RS.4 LACS. ACCORDINGLY, IT IS HELD THAT APPEA L FILED BY THE REVENUE IS NOT MAINTAINABLE. I.T.A. NO. 937/AHD/11 A.Y. 07-08 [ACIT (OSD) VS. SHRIRANGAM ENTERPRISES (P) LTD.] PAGE 5 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED WITHOUT GOING INTO THE MERITS. PRONOUNCED IN THE OPEN COURT ON THIS THE 9 TH DAY OF JANUARY, 2015. SD/- SD/- (N. S. SAINI) (SHAILENDR A KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R TRUE COPY S.K.SINHA ' ' ' ' !( !( !( !( )(&! )(&! )(&! )(&! / COPY OF ORDER FORWARDED TO:- 1. ,- / REVENUE 2. / ASSESSEE 3. 00! 1 / CONCERNED CIT 4. 1- / CIT (A) 5. (56 !, , / DR, ITAT, AHMEDABAD 6. 69: ;< / GUARD FILE. BY ORDER / ' , =/ 0, , ?