ACIT, CHENNAI v. M/s. Sieve Tech India Pvt Ltd., CHENNAI

ITA 1028/CHNY/2011 | 2005-2006
Pronouncement Date: 20-09-2011 | Result: Dismissed

Appeal Details

RSA Number 102821714 RSA 2011
Assessee PAN AAACS5005J
Bench Chennai
Appeal Number ITA 1028/CHNY/2011
Duration Of Justice 3 month(s) 14 day(s)
Appellant ACIT, CHENNAI
Respondent M/s. Sieve Tech India Pvt Ltd., CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 20-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 20-09-2011
Assessment Year 2005-2006
Appeal Filed On 06-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH CHENNAI BEFORE DR. O.K. NARAYANAN VICE-PRESIDENT AND SHRI GEORGE MATHAN JUDICIAL MEMBER I.T.A.NO. 1028/MDS/2011 (ASSESSMENT YEAR : 2005-06) THE ASSISTANT COMMISSIONER OF INCOME-TAX COMPANY CIRCLE-VI(3) CHENNAI 600 034. VS. M/S. SIEVE TECH INDIA PVT. LTD. NO.18 SIDCO IND. ESTATE MARAIMALAI NAGAR CHENNAI 603209. PAN AAACS 5005 J (APPELLANT) (RESPONDENT) APPELLANT BY : DR. I. VIJAYAKUMAR IRS C IT- DR RESPONDENT BY : SHRI A.S.SRIRAMAN ADVOCA TE DATE OF HEARING : 20 TH SEPTEMBER 2011 DATE OF PRONOUNCEMENT : 20 TH SEPTEMBER 2011 O R D E R PER DR. O.K.NARAYANAN VICE PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2005-06. THE APPEAL IS DIRECT ED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-V AT CHENNAI DATED 14.2.2011. THE APPEAL ARISES OUT OF THE ASSE SSMENT ITA 1028/11 :- 2 -: COMPLETED UNDER SEC.143[3] READ WITH SEC. 147 OF TH E INCOME-TAX ACT 1961. 2. THE ONLY GROUND RAISED BY THE REVENUE IN THE PRE SENT APPEAL IS THAT THE COMMISSIONER OF INCOME-TAX (APPE ALS) HAS ERRED IN DELETING THE DISALLOWANCE OF BONUS MADE BY THE ASSESSING OFFICER UNDER SEC.43B. 3. IT IS SEEN THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN ` 3 LAKHS. INSTRUCTION NO.3 OF 2011 DATED 9 TH FEB. 2011 ISSUED BY THE CENTRAL BOARD OF DIRECT TAX ES UNDER SEC.268A(1) OF THE INCOME-TAX ACT 1961 HAS GIVEN DIRECTIONS NOT TO FILE APPEALS BEFORE THE INCOME-TAX APPELLATE TRI BUNAL WHERE THE TAX EFFECT DOES NOT EXCEED ` 3 LAKHS. 3. THE FIRST INSTRUCTION NO.1093 DATED 28.10.1992 I SSUED BY THE BOARD HAD LAID DOWN SUCH LIMIT AT ` 25 000/-. THEREAFTER THROUGH INSTRUCTION NO. 1979 DATED 27.3.2000 THE S AID LIMIT WAS ENHANCED TO ` 1 00 000/-. SUBSEQUENTLY THE LIMIT WAS AGAIN INCREASED TO ` 2 LAKHS THROUGH INSTRUCTION NO.2 DATED 24.10.2005. 4. IN THE LIGHT OF THE ABOVE EARLIER INSTRUCTIONS WHEN THE APPEALS WERE DISPOSED OF BY THE TRIBUNAL IN LIMINE ON THE GROUND ITA 1028/11 :- 3 -: OF NON-MAINTAINABILITY ISSUES WERE TAKEN UP BEFORE THE HON'BLE HIGH COURTS. THE HON'BLE BOMBAY HIGH COURT IN THE C ASE OF COMMISSIONER OF INCOME-TAX V. CAMCO COLOUR CO. (254 ITR 565) HAS HELD THAT WHERE THE REVENUE EFFECT INVOLVED IN THE APPEAL IS BELOW THE PRESCRIBED LIMIT THE APPEAL IS NOT MAINT AINABLE BEFORE THE APPELLATE TRIBUNAL. THEREAFTER THE HON'BLE MADR AS HIGH COURT IN CWT VS. ANNAMALI (258 ITR 675) HELD THAT THE LIM IT PRESCRIBED IN THE LATEST INSTRUCTION IS APPLICABLE NOT ONLY TO THE APPEALS TO BE FILED AFTER THE ISSUE OF SUCH INSTRUCTIONS BUT ALS O APPLICABLE TO THE PENDING APPEALS. THIS VIEW WAS AGAIN FOLLOWED BY T HE HON'BLE MADRAS HIGH COURT IN THE CASE OF COMMISSIONER OF IN COME-TAX V. ASSOCIATED ELECTRICAL AGENCIES (295 ITR 496). THE HON'BLE BOMBAY HIGH COURT ALSO HAS HELD THE SAME VIEW IN TH E CASE OF COMMISSIONER OF INCOME-TAX V. PITHWA ENGG. WORKS ( 276 ITR 519) AND IN THE CASE OF COMMISSIONER OF INCOME-TAX VS. ZOEB Y. TOPPIWALA (284 ITR 379). 5. THUS THE COURTS HAVE CONSISTENTLY HELD THAT WHE RE THE TAX EFFECT IS LESS THAN THE PRESCRIBED LIMIT APPEALS ARE NOT MAINTAINABLE BEFORE THE TRIBUNAL AND HAVE ALSO HELD THAT THE ITA 1028/11 :- 4 -: LATEST SUCH INSTRUCTIONS ARE APPLICABLE EVEN TO THE PENDING APPEALS. 6. THEREFORE IN THE FACTS AND CIRCUMSTANCES OF THE CASE WE FIND THAT THIS APPEAL IS NOT MAINTAINABLE BEFORE TH E TRIBUNAL. ACCORDINGLY THE APPEAL IS DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON TUESDAY THE 20 TH OF SEPTEMBER 2011 AT CHENNAI. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER (DR. O.K.NARAYANAN) VICE-PRESIDENT CHENNAI DATED : 20 TH SEPTEMBER 2011 MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR