The DCIT, Circle-5, Ahmedabad V. Ravi Raj Foils Ltd., Ahmedabad

MA 16/AHD/2010

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 3672 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 08-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K M MAHESH
• Assessee Lawyers: P M MEHTA
• Keywords: Tax effect

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A AHMEDABAD BEFORE S/SHRI T.K. SHARMA, JM AND D.C.AGRAWAL, AM DY. CIT, CIR.5, AHMEDABAD. VS. RAVI RAJ FOILS LTD., 702, SAFFRON BLDG., 7 TH FLOOR, PANCHVATI, AHMEDABAD. (APPELLANT) .. (RESPONDENT) REVENUE BY :- SHRI K. M. MAHESH, DR ASSESSEE BY:- SHRI P. M. MEHTA, AR O R D E R PER D. C. AGRAWAL, ACCOUNTANT MEMBER . THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY T HE REVENUE AGAINST THE ORDER OF THE TRIBUNAL IN ITA NO.3655/AH D/2007 ALONG WITH C.O. NO.356/AHD/2007 PRONOUNCED ON 11.11.2009 WHERE IN THE TRIBUNAL HAD DISMISSED THE APPEAL OF REVENUE FOLLOWING THE D ECISION OF HON.DELHI HIGH COURT IN THE CASE OF CIT VS. MANGLAM RICINUS L TD. (2008) 174 TAXMAN 186 (DEL), BECAUSE THE RETURNED INCOME OF TH E ASSESSEE WAS OF LOSS AND ALSO THE ASSESSED INCOME WAS OF LOSS. THUS THERE WAS NO REVENUE EFFECT AND THE TRIBUNAL HELD THAT REVENUE NEED NOT HAVE FILED THE APPEAL BECAUSE OF LOW REVENUE EFFECT. HOWEVER, IN THE MISC . APPLICATION REVENUE SUBMITTED THAT AMOUNT OF ADDITION INVOLVED IN THE CASE OF ASSESSEE IS RS.33,54,944/- AS RETURNED LOSS WAS RS. 3,63,73,594 AND ASSESSED LOSS WAS RS.3,12,18,639/- AND THUS TAX EFF ECT INVOLVED IS M.A. NO.16/AHD/2010 ARISING OUT ITA NO.3655/AHD/2007 ALONG WITH C.O. NO.356/AHD/2007 ASST. YEAR :2004-05 2 RS.12,03,586/- WHICH IS IN FACT A NOTIONAL TAX EFFE CT. ACCORDINGLY, AS PER LD. DR THE TRIBUNAL SHOULD NOT HAVE DISMISSED THE A PPEAL OF REVENUE IN LIMINE. 2. ON THE OTHER HAND, THE LD. AR SUBMITTED THAT CBD T VIDE INSTRUCTION NO.5/2008 DATED 15.5.2008 HAS ONLY DIRE CTED THE REVENUE TO FILE THE APPEAL ON THE BASIS OF NOTIONAL TAX EFFECT WHEREAS THE PRESENT APPEAL WAS FILED BY THE REVENUE ON 7.9.2007, THEREF ORE THE SAID INSTRUCTION OF THE CBDT WOULD NOT BE APPLICABLE. 3. ACCEPTING THE ARGUMENT OF LD. AR, WE HOLD THERE IS NO CASE FOR RECALLING THE ORDER OF THE TRIBUNAL AND ACCORDINGLY THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS REJECTED. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS REJECTED. ORDER WAS PRONOUNCED IN OPEN COURT ON 30/7/2010 SD/- SD/- (T.K. SHARMA) (D.C.AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBE R AHMEDABAD, DATED : 20/7/2010 MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD