DCIT, Circle-3(2), Hyderabad V. M/s. S.S.B. Enterprises Ltd., Hyderabad

MA 93/HYD/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 9694 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2001-2002
• Appeal Filed On: 09-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPTH
• Assessee Lawyers: K NEERAJA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER MA NO. 93/HYD/2012 IN ITA NOS. 299 & 300 /HYD/2010 ASSESSMENT YEARS 2001-02 & 2002-03 THE DY. CIT CIRCLE-3(2) HYDERABAD VS. M/S. S.S.B. ENTERPRISES LTD. HYDERABAD PAN: AACCS8253N APPELLANT RESPONDENT APPELLANT BY: SMT. AMISHA S. GUPTH RESPONDENT BY: SMT. K. NEERAJA DATE OF HEARING: 14.12.2012 DATE OF PRONOUNCEMENT: 14.12.2012 O R D E R PER CHANDRA POOJARI, AM: THIS MISCELLANEOUS APPLICATION (MA) BY THE REVENUE SEEKS RECALL OF ORDER OF THIS TRIBUNAL DATED 30.11.2011 IN ITA NOS. 288 & 300/HYD/2010 FOR ASSESSMENT YEARS 2001-02 AND 2002-03, RESPECTIVELY. THE TRIBUNAL VIDE THE ABOVE ORDER DISMISSED THE APPEALS OF THE REVENUE HO LDING THAT THE TAX EFFECT IS LESS THAN RS. 3 LAKHS. 2. ACCORDING TO THE LEARNED DR THE INSTRUCTION NO. 3 O F 2011 (F. NO. 279/MISC. 142/2007/ITJ) DATED 9 TH FEBRUARY, 2011 ISSUED BY THE CBDT, ON WHICH THE TRIBUNAL PLACED RELIANCE, IS NOT APPLICAB LE WHERE IT IS MENTIONED THAT THE TAX EFFECT NOT TO FILE APPEAL BEFORE THE TRIBUN AL IS AT RS. 3 LAKHS AND THIS CASE IS GOVERNED BY CBDT INSTRUCTION NO. 5 OF 2008 DATED 15.2.2008 WHERE THE MONETARY LIMIT IS RS. 2 LAKHS. DISMISSAL OF APPEAL S BY THE TRIBUNAL IS NOT CORRECT. SHE SOUGHT RECALLING OF THE ABOVE TRIBUNAL ORDER. 3. THE LEARNED AR PUT STRONG OBJECTION AND SHE PLACED RELIANCE ON THE JUDGEMENT OF BOMBAY HIGH COURT IN THE CASE OF CIT V S. SMT. VIJAYA V. KAVEKAR IN TAX APPEAL NO. 78 OF 2007 DATED 29 TH JULY, 2011. SHE SUBMITTED THAT THERE IS NO MISTAKE IN THE ORDER OF THE TRIBUNAL. MA NO. 93/HYD/2012 M/S. S.S.B. ENTERPRISES LTD. =================== 2 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. IN OUR OPINION, THERE IS NO MERIT IN THE ARGUMENT OF THE L EARNED DR. THE BOMBAY HIGH COURT IN THE CASE OF CIT VS. SMT. VIJAYA V. KAVEKAR IN TAX APPEAL NO. 78 OF 2007 DATED 29 TH JULY, 2011 HELD FOLLOWS: ' IT IS TRUE THAT THIS JUDGEMENT IN CHHAJER'S CASE (S UPRA) WAS NOT BROUGHT TO THE NOTICE OF THE DIVISION BENCH, WHILE DECIDING EITHER MADHUKAR'S CASE (SUPRA) OR THE CASE OF POLYCOT CORP ORATION (SUPRA). HOWEVER, THE INSTRUCTION OF 2005 WHICH WA S CONSIDERED IN CHHAJER'S CASE HAS ALSO BEEN INTERPRETED IN POLY COT CORPORATION (SUPRA). THE CONSISTENT VIEW OF THE CO URT HAS BEEN THAT THE CBDT INSTRUCTION WOULD APPLY TO PENDING CA SES AS WELL. THE MAIN OBJECTIVE OF SUCH INSTRUCTIONS IS TO REDUC E THE PENDING LITIGATION WHERE THE TAX EFFECT IS CONSIDERABLY SMA LL. THEREFORE, IN OUR OPINION, THE TAX APPEALS ARE REQUIRED TO BE DIS MISSED, AS THEY ARE NOT MAINTAINABLE IN VIEW OF THE PROVISIONS OF S ECTION 268A OF THE INCOME-TAX, AND THE CBDT INSTRUCTION NO. 3 OF 2 011.' 5. IN VIEW OF THE ABOVE JUDGEMENT OF THE HONBLE BOMBA Y HIGH COURT, WE ARE INCLINED TO DISMISS THE MA BY THE REVENUE. 6. IN THE RESULT, MA FILED BY THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH DECEMBER, 2012. SD/- (SAKTIJIT DEY) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 14 TH DECEMBER, 2012 COPY FORWARDED TO: 1. THE DCIT, CIRCLE-3(2), HYDERABAD. 2. M/S. SSB ENTERPRISES LTD., 1-1-385/39, P & T COL ONY, GANDHINAGAR, HYDERABAD. 3. THE CIT(A), TIRUPATI 4. THE CIT-3, HYDERABAD. 5. THE DR B BENCH, ITAT, HYDERABAD. TPRAO