ITO, Ward -2, Karimnagar V. M/s. Gayathri Cotton Pressing Industries, Karimnagar Dist.

MA 86/HYD/2013

• Counselvise Citation: [2013] 124 COUNSELVISE.COM (IT) 0248 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-05-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 18-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M H NAIK
• Keywords: Audit objection; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER M.A. NO. 86/HYD/2013 (IN ITA NO. 1376/HYD/2012 ASSESSMENT YEAR: 2004-05) INCOME TAX OFFICER, APPLICANT WARD 2, KARIMNAGAR VS. M/S GAYATHRI COTTON PRESSING INDUSTRIES, RESPONDEN T JAMMIKUNTA (VILLAGE & POST), KARIMNAGAR DT. (PAN AABFG 5865 H) APPELLANT BY : SHRI M.H. NAIK RESPONDENT BY : NONE DATE OF HEARING : 19/04/2013 DATE OF PRONOUNCEMENT : 03/05/ 2013 ORDER PER SAKTIJIT DEY, J.M.: THIS MISCELLANEOUS APPLICATION FILED BY THE REVENUE ARISES OUT OF THE ORDER OF ITAT A BENCH, HYDERABAD BENCH ES, HYDERABAD, IN APPEAL ITA NO. 1376/HYD/2012 DATED 17/10/2012. 2. BRIEFLY, THE FACTS ARE THE ASSESSEE FIRM ENGAGED IN THE BUSINESS IN COTTON GINNING & PRESSING HAD FILED ITS RETURN OF INCOME FOR THE AY 2004-05 ON 30/10/2004 DECLARING T OTAL INCOME OF RS. 39,410/-. THE AO COMPLETED THE ASSESS MENT U/S M.A NO. 86/HYD/13 M/S GAYATHRI COTTON PRESSING INDUSTRIES. 2 143(3) BY MAKING ADDITION OF DIFFERENCE AMOUNT OF R S. 1,84,071/- TOWARDS PRESSING AND PROCESSING CHARGES AND RS. 33,318/- TOWARDS ELECTRICITY CHARGES TOTALLING TO R S. 2,17,389/- . ON APPEAL, THE CIT(A), DELETED THE SAID ADDITIONS MADE BY THE AO. WHEN THE REVENUE CAME IN APPEAL BEFORE THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A), THE TRIBUNAL DISMI SSED THE APPEAL OF THE REVENUE ON THE GROUND THAT THE TAX EF FECT INVOLVED IN THE APPEAL IS LESS THAN 3 LAKHS IN VIEW OF THE INSTRUCTION NO. 3 OF 2011 (F.NO. 279/MISC 142/2007- ITJ), DATED 9 TH FEBRUARY, 2011. 3. HENCE, THE REVENUE FILED THE PRESENT MA AGAINST THE ORDER OF THE TRIBUNAL. IT IS STATED IN THE MA THAT THE DE PARTMENT FILED THE APPEAL BEFORE THE ITAT ON THE GROUND THAT IT FA LLS UNDER PARA 8(C) OF BOARDS INSTRUCTION NO. 3/2011 DT. 09/ 02/2011 AND HAS TO BE CONTESTED ON MERITS NOTWITHSTANDING T HAT THE TAX EFFECT ENTAILED IS LESS THAN THE PRESCRIBED MONETAR Y LIMIT OF RS. 3.00 LAKHS. THE LESS THAN RS. 3.00 LAKH TAX WOULD N OT BE APPLICABLE IN THE FOLLOWING CIRCUMSTANCES: A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISI ONS OF AN ACT OR RULE ARE UNDER CHALLENGE, OR B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION O R CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES , OR C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BE EN ACCEPTED BY THE DEPARTMENT. IT WAS, THEREFORE, REQUESTED TO THE TRIBUNAL TO AME ND ITS ORDER. M.A NO. 86/HYD/13 M/S GAYATHRI COTTON PRESSING INDUSTRIES. 3 4. AT THE TIME OF HEARING OF THE M.A. BEFORE US NON E APPEARED ON BEHALF OF THE RESPONDENT-ASSESSEE IN-SP ITE OF SERVICE OF NOTICE. CONSIDERING THE SUBMISSIONS OF T HE LEARNED DR THAT THE PRESENT APPEAL FALLS WITHIN THE EXCEPTI ONS PROVIDED IN PARA 8(C) OF BOARDS INSTRUCTION NO. 3/2011 DT. 09/02/2011 ON ACCOUNT OF REVENUE AUDIT OJBECTION BEING ACCEPTE D BY THE DEPARTMENT, WE RECALL OUR ORDER DT. 17/10/2012 IN I TA NO. 1376/HYD/12 AND RESTORE THE APPEAL FOR HEARING ON M ERITS IN NORMAL COURSE. 5. IN THE RESULT, THE M.A. FILED BY THE REVENUE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 3 RD MAY, 2013. SD/- SD/- (CHANDRA POOJARI) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 3 RD MAY, 2013. KV COPY TO:- 1) INCOME-TAX OFFICER, WARD 2, KARIMNAGAR. 2) M/S GAYATHRI COTTON PRESSING INDUSTRIES, JAMMIKUNTA (VILLAE & POST), KARIMNAGAR DIST. 3) THE CIT (A)-III, HYDERABAD 4) THE CIT-II, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD.