THE DCIT, Hyderabad v. M/s Sitara Technologies Pvt Ltd, Hyderabad

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ' HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1205/HYD/09 : ASSESSMENT Y EAR 2004-05 DY. COMMISSIONER OF INCOME TAX CIRCLE 3(2) HYDERABAD V/S. M/S. SITARA TECHNOLOGIES PVT. LTD. HYDERABAD. ( PAN AAFCS 0768 P ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMLAN TRIPATHY RESPONDENT BY : SHRI A.V.RAGHURAM O R D E R PER G.C.GUPTA VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 4-05 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCO ME- TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- 1. THE CIT(A) ERRED ON FACTS AND IN LAW. 2. THE CIT(A) SHOULD HAVE UPHELD THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE CLAIM U/S. 90. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT THE REVENUES APPEAL IS NOT MAINTAINABL E SINCE THE DISPUTED TAX IN THIS CASE COMES TO LESS THAN RS.2 LAKHS. ITA NO.1205./HY D/09 M/S. SITARA TECHNOLOGIES PVT. LTD. HYD. 2 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS OPPO SED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE SUBMIT TED THAT THE INSTRUCTION NO.2 OF 2005 DATED 24.10.2005 ISSUED B Y THE CBDT DIRECTING FOR NON-FILING OF REVENUES APPEALS BEFORE T HE TRIBUNAL IN THE CASES WHERE THE DISPUTED TAX AMOUNT WAS LESS THAN RS.2 LAKH S IS NOT APPLICABLE TO THE CASE OF THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. IT IS AN UNDISPUTED F ACT THAT TAX EFFECT IN THIS CASE IS LESS THAN RS.2 LAKHS. WE FIND THAT IN VIEW OF THE INSTRUCTION NO.2 OF 2005 DATED 24.10.2005 ISSUED BY THE CBDT THE PRESENT APPEAL FILED BY THE REVENUE INVOLVING TAX EFFECT OF LESS THAN RS.2.00 LAKHS IS NOT MAINTAINABLE BEFORE THE TRIBUNAL AND ACCORDINGLY THE APPEAL OF THE REVENUE IS DISMISSED IN LIMINE. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 25.2.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 25TH FEBRUARY 2011 COPY FORWARDED TO: 1. M/S. SITARA TECHNOLOGIES PVT. LTD. 3-6-361/16 103 SURABHI NEST HIMAYATH NAGAR HYDERABAD. 2. DY. COMMISSIONER OF INCOME TAX CIRCLE 3(2) HYDERA BAD ITA NO.1205./HY D/09 M/S. SITARA TECHNOLOGIES PVT. LTD. HYD. 3 3. COMMISSIONER OF INCOME-TAX(APPEALS) IV HYDERABAD 4. COMMISSIONER OF INCOME TAX III HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S