, , Û ,
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES "E", MUMBAI
[^ .., Û Û], , ¢
Before Shri I.P.Bansal, JM and Shri Rajendra, AM
ITA NO.7460 /MUM/2012 (A.Y. 2006-07)
ITA NO.7461 /MUM/2012 (A.Y. 2007-08)
The ACIT, Cir. 3(3), M/s.Softdel Systems Pvt. Ltd.
Room No.609, 6th Floor, /
2nd Floor, Acropolis, Military
Aaykar Bhavan, MK Road, Vs. Road, Marol Maroshi,
Mumbai 400 020 Andheri (East), Mumbai -59
PAN:AAECS O576Q
( /Appellant) (×/Respondent)
/Appellant by : Shri Paramand J.
× /Respondent by : None
/ /
Date of Hearing : 15.09.2014 Date of Pronouncement :
15.09.2014
/ O R D E R
PER I.P.BANSAL (JM) :
These appeals are filed by the Revenue and they are directed against
two separate orders passed by Ld. CIT(A)-7, Mumbai 13/08/2012 for
assessment years 2006-07 and 2007-08 respectively. Grounds of appeal in
both the appeals read as under:
Grounds of Appeal in ITA No.7460/Mum/2012:
"Whether on the facts and circumstances of the case and in law, the Ld. CIT(A)
was justified in deleting the disallowance made by the AO of Rs.8,14,000/- u/s.
40(a)(ia) being reimbursement of expenses made by the assessee to Digital
Electronics Ltd. without appreciating the fact that Board's circular No.715 dated
08.08.1995 states that provision of section 194J is clearly applicable in such
case."
Grounds of Appeal in ITA No.7461/Mum/2012:
"Whether on the facts and circumstances of the case and in law, the Ld. CIT(A)
was justified in deleting the disallowance made by the AO of Rs.9,57,056/- u/s.
40(a)(ia) being reimbursement of expenses made by the assessee to Digital
Electronics Ltd. without appreciating the fact that Board's circular No.715 dated
08.08.1995 states that provision of section 194J is clearly applicable in such
case."
2 I TA N O . 7 4 6 0 / M U M / 2 0 1 2 ( A . Y . 2 0 0 6 - 0 7 )
I TA N O . 7 4 6 1 / M U M / 2 0 1 2 ( A . Y . 2 0 0 7 - 0 8 )
2. As it can be seen from the grounds of appeal the deletion which has
been contested by the Revenue are a sum of Rs.8,14,000/- and Rs.9,57,056/-
on which tax effect apparently would be less than Rs.4.00 lacs. However, Ld.
DR pleaded that these appeals could not be dismissed on account of low tax
effect as these appeals were filed prior to issue of Instruction by CBDT
dated 10/07/2014 issued under section 268A of the Income Tax Act, 1961
(Instruction No.5/2014 (F.No.279/MISC.142/2007-ITJ(PT)] vide which the tax
effect limit for filing the appeal before the Tribunal was enhanced from Rs.3.00
lacs to Rs.4.00 lacs.
3. We have considered the submission of Ld. DR. However, according to
following decisions of Hon'ble Jurisdictional High Court, such notifications
issued under section 268A would be applicable even to the appeals filed
before issue of the notification if the limit is enhanced:
1. In the case of CIT vs. Smt. Vijaya Kavekar (2013 30 taxmann.com 412) it
was held as under:
Section 260A, read with Section 268A, of the Income-tax Act, 1961 -
High Court - Appeals to - Tax effect - Whether Instruction No. 3 of
2011, dated 9-2-2011, specifying monetary limit of Rs. 10 lakhs for
maintainability of appeal before High Court is applicable on
pending appeals as well - Held, yes - Whether, therefore, where tax
effect in revenue's appeals was less than Rs. 10 lakhs which was
filed even prior to issue of Instruction dated 9-2-2011, same was to
be dismissed being non-maintainable - Held, yes [In favour of
assessee]
2. In the case of CIT vs. Madhukar Imandar (2009 185 Taxman 101] it was
held as under:
Section 268A, read with section 119, of the Income-tax Act, 1961 -
Appeal or application for reference - Filing of, by income-tax
authority - Whether circular/Income-tax Instruction No. 5 of 2008,
dated 15-5-2008 issued by CBDT directing income-tax authorities
not to file appeals if tax effect is less than Rs. 4 lakhs would be
applicable to cases pending before High Court as on 15-5-2008
either for admission or for final disposal, even though said appeals
and/or petitions were filed before High Court prior to 15-5-2008 -
Held, yes
4. In view of the situation we dismiss the appeals filed by the Revenue on
account of low tax effect as per aforementioned instruction issued by CBDT
3 I TA N O . 7 4 6 0 / M U M / 2 0 1 2 ( A . Y . 2 0 0 6 - 0 7 )
I TA N O . 7 4 6 1 / M U M / 2 0 1 2 ( A . Y . 2 0 0 7 - 0 8 )
dated 10.07.2014 in which tax effect limit is prescribed at Rs.4.00 lacs and
also in view of aforementioned decisions of Hon'ble Bombay high Court.
5. In the result, both the appeals are dismissed.
Order pronounced in the open court on this 15.09. 2014.
15.09.2014
Sd/- Sd/-
(Rajendra) (I.P.Bansal)
/ ACCOUNTANT MEMBER Û / JUDICIAL MEMBER
Mumbai; Dated : 15 Sept. 2014.
VM.
/ Copy of the Order forwarded to :
1. / The Appellant
2. × / The Respondent.
3. () / The CIT, Mumbai.
4. / CIT(A)-13, Mumbai
5. , , / DR,
ITAT, Mumbai
6. [ / Guard file.
/ BY ORDER,
× //True Copy//
/ (Dy./Asstt. Registrar)
/
,
, / ITAT, Mumbai
|
