The ITO, Ward-1, Bharuch V. Shri Kiran K.Majmudar, Bharuch

ITSSA 62/AHD/2011

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7760 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 02-12-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 28-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGIDM
• Keywords: Tax effect

Judgement Text

, , . .. . . .. . , , , , . .. .!' !' !' !' !' !' !' !' , #$ #$ #$ #$ # % # % # % # % IN THE INCOME TAX APPELLATE TRIBUNAL : C BENCH : AHMEDABAD BEFORE SHRI G.C.GUPTA, HONBLE V.P. & SHRI A.MOHAN ALANKAMONY, HONBLE A.M.) . IT(SS)A NO. 62/AHD./2011 : ' &' - 2003-2004 I.T.O., WARD-1, BHARUCH ( () /APPELLANT) -VS- KIRAN K. MAJUMDAR, BHARUCH ( *+() /RESPONDENT ) (PAN : ADFPM 4805E) () , - # / APPELLANT BY : SHRI J.P.JANGIDM, D.R. *+() , - # / RESPONDENT BY : SHRI MUKUND BAKSHI, A.R. '. , /0$ / DATE OF HEARING : 03/02/2012 1!& , /0$ / DATE OF PRONOUNCEMENT : 17/02/2012 #2 #2 #2 #2 / ORDER PER SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A)-IV, AHMEDABAD DATED 08.11.2010 IN APPEAL NO.CIT(A)- IV/081-B/CC-2/09-10 FOR THE ASSESSMENT YEAR 2003-04 PASSED UNDER SECTION 250 R.W.S. 271(1)(C) OF THE I.T. ACT. 2. AT THE OUTSET, IT IS NOTICED THAT THE MONETARY E FFECT IN RESPECT OF IMPOSITION OF PENALTY FALLS BELOW RS.3 LAKHS I.E. R S.2,58,000/-. THE CBDT VIDE LETTER NO.DIT(L&R)-I/SLP/393/2011/4589 DATED 0 2.09.2011 CLARIFIES THAT, THE REVISED MONETARY LIMITS OF TAX EFFECTS INVOLVED PRESCRIBED BY CBDT INSTRUCTION NO.3/2011 DATED 9 TH FEBRUARY, 2011, WAS APPLICABLE ONLY FOR THE APPEALS FILED ON OR AFTER 9 TH FEBRUARY, 2011 I.E. THE DATE OF ISSUE OF INSTRUCTION. AS PER PARA 11 OF THE INSTRUC TION, IT WAS CLARIFIED THAT THE APPEALS FILED EARLIER WOULD BE GOVERNED BY THE OLD INSTRUCTIONS IT(SS)A NO.62-AHD-2011 2 OPERATIVE AT THE TIME OF FILING . FURTHER, THE TRIBUNAL IN THE CASE OF ITO VS- M/S. LAXMI JEWEL PVT. LTD. IN ITA NO.2165/MUM/2 010 HAS INTERPRETED THAT THE INSTRUCTION OF CBDT FOR FILING THE APPEAL IN ADHERENCE TO MONETARY CONCESSION SHALL BE APPLICABLE TO ALL THE CASES PENDING BEFORE THE COURT EITHER FOR ADMISSION OR FOR FINAL DISPOSA L. THE RELEVANT PORTION OF THE ORDER IS REPRODUCED HEREUNDER: 6. WE HAVE CONSIDERED THE ISSUE. THERE IS NO DOUBT THAT THE TAX EFFECT IN THIS CASE IF ONLY 2,07,512/-. AS PER INST RUCTION NO. 3 OF 2011 DATED 09.02.2011 APPEAL BEFORE APPELLATE TRIBU NAL CAN BE FILED WHERE THE TAX EFFECT EXCEEDS THE MONITORY LIM IT OF 3,00,000/-. HOWEVER, CONSIDERING THE SIMILAR SITUATION WHERE TA X LIMITS WERE MODIFIED BY THE CBDT INSTRUCTION NO. 5 OF 2008 THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. MA DHUKAR K. INAMDAR (HUF) (SUPRA) HELD THAT THE CIRCULAR WILL B E APPLICABLE TO THE CASES PENDING BEFORE THE COURT EITHER FOR ADMI SSION OR FOR FINAL DISPOSAL. IN VIEW OF THE ORDER OF THE JURISDICTIONA L HIGH COURT WE HOLD THAT INSTRUCTION NO. 3 DATED 09.02.2011 IS APP LICABLE FOR THE APPEAL PREFERRED BY THE REVENUE. THEREFORE, THE APP EAL IS DISMISSED ON THE ISSUE OF TAX EFFECT INVOLVED. EVEN OTHERWISE THERE IS NO CASE FOR THE REVENUE ON MERITS AS THE ISSUE W AS HELD IN AGAINST THE REVENUE BY THE ITAT ORDER IN THE CASE O F LIVING STONES JEWELLERY (P) LTD. VS. DCIT 31 SOT 323, WHICH THE C IT(A) FOLLOWED. 2.1 PLACING RELIANCE ON THE ABOVE DECISION OF THE C OORDINATE BENCH OF THE TRIBUNAL ( SUPRA ), WE HOLD THAT THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 3 #2 , 1!& 4' ' 17 / 02 /201 2 ! 5 , . SD/- SD/- (G.C.GUPTA) (A.MOHAN ALANKAMONY) VICE PRESIDENT ACCOUNTANT MEMBER DATED : 17/02/2012 IT(SS)A NO.62-AHD-2011 3 #2 #2 #2 #2 , ,, , */ */ */ */6 66 6 7#6&/' 7#6&/' 7#6&/' 7#6&/'- -- - 1. () 2. *+() 3. / < 4. <- - 5. 6? */' , , @ 6. B C3 #2 #, D/ , @ TALUKDAR/ SR. P.S.