DCIT, New Delhi v. M/s Biotech International Ltd., New Delhi

ITA 5245/DEL/2010 | 2006-2007
Pronouncement Date: 28-01-2011 | Result: Dismissed

Appeal Details

RSA Number 524520114 RSA 2010
Bench Delhi
Appeal Number ITA 5245/DEL/2010
Duration Of Justice 2 month(s) 2 day(s)
Appellant DCIT, New Delhi
Respondent M/s Biotech International Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 28-01-2011
Date Of Final Hearing 27-01-2011
Next Hearing Date 27-01-2011
Assessment Year 2006-2007
Appeal Filed On 25-11-2010
Judgment Text
I.T.A. NO.5245 /DEL/10 1/3 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A NEW DELHI) BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER AND SHRI A.K. GARODIA ACCOUNTANT MEMBER I.T.A. NO.5245/DEL/2010 ASSESSMENT YEAR : 2006-07 DCIT BIOTECH INTERNATIONAL LTD. CIRCLE-3 (1) 2 LSC BLOCK NO.EFGH NEW DELHI. V. MASJID MOTH GK-II NEW DELHI. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AAACB AAACB AAACB AAACB- -- -2830 2830 2830 2830- -- -N NN N APPELLANT BY : SHRI AMREDNDER KUMAR & MRS. ANUSHA KHURANA SR. DR. RESPONDENT BY : SHRI SALIL AGARWAL ADVOCATE. ORDER PER A.K. GARODIA AM: THIS IS REVENUES APPEAL AGAINST THE ORDER OF THE C IT (A)-VI NEW DELHI DATED 35.092.2010 FOR ASSESSMENT YEAR 2006-07. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER:- 1. THE LD CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING ADDITION OF RS.5 23 890/- OUT OF TOTAL ADDITION OF `.7 31 65 9/- ON ACCOUNT OF DEVELOPMENT AND LICENSE FEE IGNORING THAT BENEFIT O F ENDURING NATURE WAS DRAWN BY THE ASSESSEE WHILE INCURRING SU CH EXPENSES. 2. THE LD CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING ADDITION OF RS..23 078/- ON ACCOUNT OF EXTRA DEPRECIATION CL AIMED IGNORING THAT AS PER THE IT RULES 60% DEPRECIATION IS ALLOWA BLE ONLY ON . I.T.A. NO5245/DEL/10 2/3 COMPUTER AND COMPUTER SOFTWARE AND NOT ON COMPUTER PERIPHERALS AND ACCESSORIES. 2. AT THE VERY OUT SET IT WAS SUBMITTED BY THE LD AR OF THE ASSESSEE THAT IN THE PRESENT CASE THE TAX EFFECT OF THE DISPUTE IS BELOW RS. 2 LAKHS AND HENCE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN V IEW OF THE BOARDS CIRCULAR. RELIANCE WAS ALSO PLACED ON THE JUDGMENT OF THE HON 'BLE BOMBAY HIGH RENDERED IN THE CASE OF CIT V. ZOEB Y. TOPIWALA REPORTED AS 284 ITR 379. 3. THE LD DR OF THE REVENUE HAD NOTHING TO SAY. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE TAX EFFECT IN THE PRESE NT CASE IS BELOW RS.2 LAKH. AS PER THE INSTRUCTION NO. 1979 OF THE CBDT DATED 27.3 .2000 THE DEPARTMENT SHOULD NOT RAISE THE DISPUTE BEFORE THE TRIBUNAL IF THE TAX EFFECT OF THE DISPUTE IS BELOW RS.1 LAKH. LATER ON THIS M0ONETARY LIMIT FOR FILING SUCH APPEAL BEFORE THE TRIBUNAL WAS REVISED TO RS.2 LAKHS.. IT WAS HELD BY THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V. ZOEB Y. TOPIWALA (SUPRA ) THAT THE BOARDS CIRCULAR IS BINDING ON THE REVENUE. UNDER THESE CIRCUMSTANCES WE HOLD THAT THIS APPEAL OF REVENUE IS NOT MAINTAINABLE IN VIEW OF THE BOARDS CIRCULAR AND THE JUDGMENT OF THE HON'BLE BOMBAY HIGH COURT. THEREFORE WE DISMIS S THIS APPEAL OF THE REVENUE AS NOT MAINTAINABLE. 5. IN THE RESULT THIS APPEAL OF THE REVENUE STANDS DISMISSED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE O F HEARING I.E. 28TH JANUARY 2011. SD/- SD/- (R.P. TOLANI) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 28.1.2011. . I.T.A. NO5245/DEL/10 3/3 HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DEL HI. TRUE COPY. BY ORDER (ITAT NEW DELHI).