Dy.CIT, Cir.3(1), Dhule, v. Shri Bhikan Bapurao Shelke, Dhule

ITA 1232/PUN/2005 | misc
Pronouncement Date: 20-07-2011 | Result: Dismissed

Appeal Details

RSA Number 123224514 RSA 2005
Assessee PAN THMAY2008W
Bench Pune
Appeal Number ITA 1232/PUN/2005
Duration Of Justice 6 year(s) 2 month(s) 4 day(s)
Appellant Dy.CIT, Cir.3(1), Dhule,
Respondent Shri Bhikan Bapurao Shelke, Dhule
Appeal Type Income Tax Appeal
Pronouncement Date 20-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 20-07-2011
Date Of Final Hearing 08-06-2011
Next Hearing Date 08-06-2011
Assessment Year misc
Appeal Filed On 16-05-2005
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D. KARUNAKARA RAO (AM) ITA NO.1232/PN/2005 (BLOCK PERIOD: 01-04-87 TO 10-07-97) DY. C.I.T. CIR. 3(1) DHULE ... APPELLANT V. SHRI BHIKAN BAPURAO SHELKE RESPONDENT VISHAL NAGAR DHULE APPELLANT BY : MS. ANN KAPTUAMA RESPONDENT BY : SHRI SUNIL GANOO ORDER PER I.C. SUDHIR JM AT THE OUTSET OF HEARING THE LD. A.R. POINTED OUT THAT TAX EFFECT IN THE PRESENT APPEAL PREFERRED BY THE REVENUE IS BELO W RS. 3 LAKH HENCE IT IS IN VIOLATION OF CBDT INSTRUCTION NO. 3 DATED 9.2 .2011. THUS THE APPEAL IS NOT MAINTAINABLE ON THIS BASIS ONLY. THE LD. A.R. PLACED RELIANCE ON THE FOLLOWING DECISIONS IN SUPPORT : 1. CIT V/S. MRS. P.S. JAIN & CO. ITR 179/1991 ORD ER DATED 2.8.2010 OF HONBLE BOMBAY HIGH COURT. 2. ITO V/S. SHRI ASHOK G. DHANDHARIAI ITA NO. 2460/MUM/2010(A.Y. 2005-06) ORDER DATED 28 FEBRUAR Y 2011. 3. CIT V/S. DELHI RACE CLUB LTD. ITA NO. 128/2008 ORDER DATED 3.3.2011 (DELHI HIGH COURT). 2. THE LD. D.R. DID NOT DISPUTE THE ABOVE SUBMISSIO N. HE HOWEVER TRIED TO JUSTIFY THE ASSESSMENT ORDER IN SUPPORT OF THE GROUND RAISED IN THE APPEAL. THE REVENUE HAS QUESTIONED THE FIRST APPELLATE ORDER WHEREBY THE LD CIT(A) HAS DELETED THE ADDITION OF R S. 5 LAKH DECLARED BY THE ASSESSEE ON ACCOUNT OF UNDISCLOSED INCOME. ITA . NO1232/PN/2005 SHRI BHIKAN BAPURAO SHELKE B.P. 1.4.87 TO 10.7.97 PAGE OF 4 2 3. HAVING GONE THROUGH THE ABOVE CITED DECISIONS BY THE LD. A.R. WE FIND THAT IN THE CASE OF CIT V/S. DELHI RACE CLUB L TD. (SUPRA) THE HONBLE DELHI HIGH COURT AS PER THE RECENT GUIDELINES OF CB DT THAT APPEAL IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS.10 LAKHS ARE NOT TO BE ENTERTAINED HAS BEEN PLEASED TO DISMISS THE APPEAL PREFERRED BY THE REVENUE HAVING TAX EFFECT BELOW RS. 10 LACS. THE H ONBLE DELHI HIGH COURT FOLLOWING ITS EARLIER DECISION IN THE CASE OF CIT V/S. M/S. P.S. JAIN & CO. (ITA NO. 179/1991 DECIDED ON 2 ND AUGUST 2010) HAS BEEN PLEASED TO HOLD THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES. HONBLE DELHI HIGH COURT IN THE CASE OF CIT V/S. M/S. P.S. JAIN & CO. (SUPRA) HAS BEEN PLEASED TO DISMISS THE REFERENCE APPLICATION HAVING TAX IMPACT OF RS. 1 80 000/- FOLLOWING THE DECISION OF HONBLE BOMBA Y HIGH COURT IN THE CASE OF CIT V/S. PITHWA ENGINEERING WORKS (2005) 2 76 ITR 519 (BOM) AND HONBLE M.P. HIGH COURT IN THE CASE OF CIT V/S. ASHOKKUMAR MANIBHAI PATEL & CO. 317 ITR 386 (M.P.). THE HONBLE BOMBA Y HIGH COURT IN THE CASE OF CIT V/S. PITHWA ENGINEERING WORKS (SUPRA) I N PARA NO.6 HAS EXPRESSED FOLLOWING VIEW AT PAGE NO. 520 : THIS COURT CAN VERY WELL TAKE JUDICIAL NOTICE OF T HE FACT THAT BY PASSAGE OF TIME MONEY VALUE HAS GONE DOWN THE COS T OF LITIGATION EXPENSES HAS GONE UP THE ASSESSES ON THE FILE OF T HE DEPARTMENTS HAVE BEEN INCREASED CONSEQUENTLY THE BURDEN ON THE DEPARTMENT HAS ALSO INCREASED TO A TREMENDOUS EXTENT. THE COR RIDORS OF THE SUPERIOR COURTS ARE CHOCKED WITH HUGE PENDENCY OF CASES. IN THIS VIEW OF THE MATTE THE BOARD HAS RIGHTLY TAKEN A DE CISION NOT TO FILE REFERENCES IF THE TAX EFFECT LESS THAN RS.2 LAKHS.T HE SAME POLICY FOR OLD MATTERS NEED TO BE ADOPTED BY THE DEPARTMENT. I N OUR VIEW THE BOARDS CIRCULAR DATED MARCH 27 2000 IS VERY MUCH APPLICABLE EVEN TO THE OLD REFERENCES WHICH ARE STILL UNDECIDE D. THE DEPARTMENT IS NOT JUSTIFIED IN PROCEEDING WITH THE OLD REFERENCES ITA . NO1232/PN/2005 SHRI BHIKAN BAPURAO SHELKE B.P. 1.4.87 TO 10.7.97 PAGE OF 4 3 WHEREIN THE TAX IMPACT IS MINIMAL. THUS THERE IS N O JUSTIFICATION TO PROCEED WITH DECADES OLD REFERENCES HAVING NEGLIGIB LE TAX EFFECT. IN VIEW OF THESE DECISIONS INCLUDING DECISION OF H ONBLE BOMBAY JURISDICTIONAL HIGH COURT WE COME TO THE CONCLUSIO N THAT CBDT GUIDELINES FOR THE REVENUE NOT TO PREFER APPEAL AGAINST FIRST APPELLATE ORDER BEFORE THE TRIBUNAL HAVING TAX EFFECT UPTO RS. 3 LACS IS V ERY MUCH APPLICABLE EVEN IN PENDING APPEALS. IN THE CASE OF CIT V/S. C IT V/S. MADHUKAR K. INAMDAR (HUF) (SUPRA) THE HONBLE JURISDICTIONAL H IGH COURT HAS BEEN PLEASED TO HOLD AGAIN THAT CBDT CIRCULAR DT.15 TH MAY 2008 WOULD BE VERY MUCH APPLICABLE TO THE PENDING CASES REQUIRING DEPA RTMENT TO WITHDRAW THE CASES WHEREIN TAX EFFECT IS LESS THAN THE PRESC RIBED MONITARY LIMITS. THE HONBLE HIGH COURT HAS BEEN FURTHER PLEASED TO HOLD THAT EVEN IF THE QUESTION OF LAW IS OF RECURRING NATURE EVEN THEN T HE REVENUE IS NOT EXPECTED TO FILE APPEALS IN SUCH CASES IF THE TAX IMPACT IS LESS THAN THE MONETARY LIMIT FIXED BY THE CBDT. 4. WE THUS RESPECTFULLY FOLLOWING THESE DECISIONS INCLUDING DECISIONS OF HONBLE BOMBAY HIGH COURT IN AFORESAID CASES HAV ING BINDING EFFECT ON THE TRIBUNAL HOLD THAT THIS APPEAL HAVING MONETAR Y IMPACT BELOW RS. 3 LACS IS NOT MAINTAINABLE AS THE APPEAL HAS BEEN PRE FERRED BY THE REVENUE IN VIOLATION OF THE ABOVE STATED GUIDELINES OF THE CBDT. THE SAME IS DISMISSED AS SUCH. 5. IN RESULT APPEAL IS DISMISSED. ITA . NO1232/PN/2005 SHRI BHIKAN BAPURAO SHELKE B.P. 1.4.87 TO 10.7.97 PAGE OF 4 4 THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 20TH J ULY 2011. SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE DATED THE 20TH JULY 2011 US COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT -I NASHIK 4. THE CIT(A)- II AURANGABAD 5. THE D.R. B BENCH PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE