ACIT, CHENNAI V. M/s. Mangal Tirth Estates Ltd., CHENNAI

MA 233/CHNY/2011

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 7470 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-01-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 20-01-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 21-11-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: M VISWANATHAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER, AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER .. M.P. NO. 233/MDS/2011 (IN I.T.A. NO. 1653/MDS/2005) ASSESSMENT YEAR : 2005-06 THE ASSISTANT COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE IV(1), CHENNAI - 600 034 . (PETITIONER) V. M/S MANGAL TIRTH ESTATES LTD., SPENCER PLAZA, 769, ANNA SALAI, CHENNAI - 600 002. PAN : AAACM4614R (RESPONDENT) PETITIONER BY : SHRI SHAJI P. JACOB, ADDL. CIT RESPONDENT BY : SHRI M. VIS WANATHAN, CA DATE OF HEARING : 20.01.2012 DATE OF PRONOUNCEMENT: 31.01.2012 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THROUGH THIS MISCELLANEOUS PETITION, GRIEVANCE RAI SED BY THE ASSESSEE IS THAT THE TRIBUNAL HELD THAT THE APPEAL TO BE NOT MAINTAINABLE SINCE THE TAX EFFECT BEING LESS THAN ` 3 LAKHS. 2. WHEN THE MATTER CAME UP BEFORE US, LEARNED D.R. SUBMITTED THAT IN VIEW OF THE DECISION OF HONBLE APEX COURT IN THE CASE OF CIT M.P. NO.233/MDS/11 2 V. SURYA HERBAL LTD. IN T.C. NO.13694/2011 DATED 29 .8.2011 AND THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF CIT V. MR. M. SUSHIL KUMAR (IND) & (HUF) IN TAX CASE (APPEAL) NOS. 805 & 806 OF 2005 DATED 29.6.2011, THE ORDER OF THE TRIBUNAL REQUIRED TO BE RECALLED. 3. PER CONTRA, LEARNED A.R. SUBMITTED THAT THE ISSU E WAS DEBATABLE ONE AND THERE WERE OTHER DECISIONS OF HON BLE JURISDICTIONAL HIGH COURT WHICH CLEARLY IMPLY THAT INSTRUCTION NO. 3 OF 2011 WILL APPLY FOR PENDING APPEALS ALSO. 4. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL S UBMISSIONS CAREFULLY. INSOFAR AS THE ISSUE OF LOW TAX EFFECT IS CONCERNED, THIS TRIBUNAL HAS BEEN TAKING CONSISTENT VIEW THAT CIRCU LAR NO.3 OF 2011 DATED 9.2.2011 WOULD APPLY TO THE APPEALS PENDING B EFORE THIS TRIBUNAL ALSO. REASON WHY THIS CIRCULAR COULD BE A PPLIED FOR PENDING APPEALS HAS ALREADY BEEN GIVEN BY THIS TRIBUNAL IN ITS DECISION DATED 2 ND DECEMBER, 2011 IN M.P. NO.197/MDS/2011, WHEREIN RE LIANCE HAS BEEN PLACED ON THE DECISIONS OF HONBLE JURISDICTIO NAL HIGH COURT IN THE CASE OF CIT V. S. SUMATHI (317 ITR 422), HONBL E PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT V. ABHINASH G UPTA (327 ITR M.P. NO.233/MDS/11 3 61) AND THAT OF HONBLE BOMBAY HIGH COURT IN THE CA SE OF CIT V. MADHUKAR K. INAMDAR (318 ITR 141). 5. NOW, LEARNED D.R. BROUGHT TO OUR NOTICE THE DEC ISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF M. SUSHIL KUMAR (SUPRA). IN THIS DECISION DATED 29.6.2011, IT HAS BEEN HELD BY HONBLE JURISDICTIONAL HIGH COURT THAT THE TERMINOLOGY USED IN INSTRUCTION NO.1777 DATED 4.11.1987 AND INSTRUCTION NO.1903 DAT ED 28 TH OCTOBER, 1992 AND THE LATER CIRCULAR OF THE BOARD D ATED 27 TH MARCH, 2000 WOULD BE RELEVANT AS ON THE DATE OF FILING APP EAL OR IN OTHER WORDS, IT WOULD NOT APPLY TO MATTERS PENDING BEFORE THIS TRIBUNAL. 6. SINCE THE JURISDICTIONAL HIGH COURT HAS HELD THA T CIRCULAR ON TAX EFFECT WILL APPLY ONLY TO APPEALS FILED AFTER THE D ATE OF SUCH CIRCULARS, JUDICIAL DISCIPLINE REQUIRES US TO BOW BEFORE SUCH HIGHER WISDOM, IN ACCORDANCE WITH THE JUDICIAL HIERARCHY. WE ARE THE REFORE CONVINCED THAT THE ORDER OF THE TRIBUNAL SUFFERS FROM A MISTA KE APPARENT ON RECORD AND HAS TO BE RECALLED. IN THE RESULT, THE ORDER IN THE APPEAL IS RECALLED AND REGISTRY IS DIRECTED TO FIX IT FOR HEA RING, IN REGULAR COURSE, AFTER GIVING DUE NOTICES TO THE PARTIES. M.P. NO.233/MDS/11 4 7. IN THE RESULT, MISCELLANEOUS PETITION FILED BY T HE REVENUE IS ALLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON 31 ST JANUARY, 2012. SD/- SD/- (HARI OM MARATHA) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 31 ST JANUARY , 2012. KRI. COPY TO: (1) PETITIONER (2) RESPONDENT (3) CIT(A) (4) CIT (5) D.R. (6) GUARD FILE