ACIT, Faridabad v. M/s. SVS Developers (P) Ltd., New Delhi

ITA 1497/DEL/2010 | 2001-2002
Pronouncement Date: 11-07-2011 | Result: Dismissed

Appeal Details

RSA Number 149720114 RSA 2010
Assessee PAN AABCS0986P
Bench Delhi
Appeal Number ITA 1497/DEL/2010
Duration Of Justice 1 year(s) 3 month(s) 5 day(s)
Appellant ACIT, Faridabad
Respondent M/s. SVS Developers (P) Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 11-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 11-07-2011
Date Of Final Hearing 11-07-2011
Next Hearing Date 11-07-2011
Assessment Year 2001-2002
Appeal Filed On 06-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA HONBLE VICE PRESI DENT AND SHRI I.P. BANSAL JUDICIAL MEMBER ITA NOS.1497 TO 1500/DEL/2010 ASSESSMENT YEARS : 2001-02 2002-03 2003-04 & 2005-06 ACIT CENTRAL CIRCLE-II FARIDABAD. VS. SVS DEVELOPERS (P) LTD. 807 PRAKASHDEEP BUILDING 7 TOLSTOY MARG NEW DELHI. PAN : AABCS0986P (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJESH ARORA CA REVENUE BY : SHRI GAJANAND MEENA CIT DR ORDER PER I.P. BANSAL JUDICIAL MEMBER ALL THESE APPEALS ARE FILED BY THE REVENUE. THEY AR E DIRECTED AGAINST FOUR SEPARATE ORDERS PASSED BY THE CIT (A) DATED 29 TH JANUARY 2010 FOR ASSESSMENT YEARS 2001-02 2002-03 2003-04 & 20 05-06. 2. AT THE OUTSET IT WAS POINTED OUT BY LD. AR THAT T AX EFFECT IN ALL THE PRESENT APPEALS EXCLUDING INTEREST IS BELOW ` 2 LAC . HE HAS FURNISHED A CHART IN THIS RESPECT THE COPY OF WHICH WA S ALSO GIVEN TO LD. DR. ACCORDING TO THE SAID CHART THE TAX EFFECT EXC LUDING INTEREST FOR ALL THESE YEARS ARE AS UNDER:- ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR TAX EFFECT TAX EFFECT TAX EFFECT TAX EFFECT 2001-02 75 330 2002-03 81 810 2003-04 1 70 344 2005-06 1 43 892 ITA NOS.1497 TO 1500/DEL/2010 2 3. TO CONTEND THAT TAX EFFECT HAS TO BE CALCULATED E XCLUDING INTEREST LD. AR HAS REFERRED TO INSTRUCTION NO.5/2008 DATED 15 TH MAY 2008 PARA 4 OF WHICH READ AS UNDER:- 4. FOR THIS PURPOSE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THA T WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUE AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREAFTER REFER RED TO AS DISPUTED ISSUES). HOWEVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON. SIMILARLY IN LOSS CASES NOTIONAL TAX EFFECT SHOULD BE TAKEN INTO ACCOUNT. IN THE CASES OF PENALTY O RDERS THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUC ED IN THE ORDER TO BE APPEALED AGAINST. 4. HE HAS PLACED BEFORE US A COPY OF THE SAID INSTRUCTI ON AND A COPY WAS ALSO GIVEN TO LEARNED DR. 5. IN THIS MANNER IT WAS SUBMITTED BY LEARNED AR THAT THE DEPARTMENTAL APPEALS SHOULD BE DISMISSED ON ACCOUNT OF L OW TAX EFFECT AS THEY SHOULD NOT HAVE BEEN EVEN FILED ACCORDING TO THE AFOREMENTIONED INSTRUCTIONS. 6. HOWEVER LD. DR RELIED UPON THE ASSESSMENT ORDERS. 7. WE HAVE HEARD BOTH THE PARTIES ON THE SHORT ISSUE RE LATING TO LOW TAX EFFECT AND IT WAS FOUND THAT THE TAX EFFECT EXCL UDING INTEREST IN ALL THE FOUR YEARS IS BELOW ` 2 LAC AND THE ORDER OF THE CIT (A) FOR EACH YEAR IS A SEPARATE ORDER. THE CALCULATION OF TAX EFF ECT HAS NOT BEEN CONTROVERTED BY THE REVENUE. THEREFORE THESE APPEA LS SHOULD NOT HAVE BEEN FILED BY THE DEPARTMENT AS THE TAX EFFECT IN ALL THESE APPEALS IS BELOW ` 2LAC. THEREFORE ON ACCOUNT OF LO W TAX EFFECT WE DISMISS THESE APPEALS IN LIMINE. ITA NOS.1497 TO 1500/DEL/2010 3 8. IN THE RESULT ALL THE APPEALS ARE DISMISSED IN THE M ANNER AFORESAID. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.07.20 11. SD/- SD/- [G.E. VEERABHADRAPPA] [I.P. BANSAL] VICE PRESIDENT JUDICIAL MEMBER DATED 11.07.2011. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES