ACIT, Rohtak v. Shri Sisar Khas Co-op L/C Society Ltd., Rohtak

ITA 6078/DEL/2010 | 2007-2008
Pronouncement Date: 18-03-2011 | Result: Dismissed

Appeal Details

RSA Number 607820114 RSA 2010
Bench Delhi
Appeal Number ITA 6078/DEL/2010
Duration Of Justice 2 month(s) 17 day(s)
Appellant ACIT, Rohtak
Respondent Shri Sisar Khas Co-op L/C Society Ltd., Rohtak
Appeal Type Income Tax Appeal
Pronouncement Date 18-03-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 18-03-2011
Date Of Final Hearing 16-03-2011
Next Hearing Date 16-03-2011
Assessment Year 2007-2008
Appeal Filed On 31-12-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH G BENCH G BENCH G BENCH G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI K.G.BANSAL K.G.BANSAL K.G.BANSAL K.G.BANSAL AM AM AM AM ITA NO. ITA NO. ITA NO. ITA NO.6078/DEL/2010 6078/DEL/2010 6078/DEL/2010 6078/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2007 2007 2007 2007- -- -08 0808 08 ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX ROHTAK CIRCLE ROHTAK CIRCLE ROHTAK CIRCLE ROHTAK CIRCLE ROHTAK. ROHTAK. ROHTAK. ROHTAK. VS. VS. VS. VS. THE SISAR KHAS COOPERATIVE THE SISAR KHAS COOPERATIVE THE SISAR KHAS COOPERATIVE THE SISAR KHAS COOPERATIVE L/C SOCIETY LIMITED L/C SOCIETY LIMITED L/C SOCIETY LIMITED L/C SOCIETY LIMITED 1151 SECTOR 1151 SECTOR 1151 SECTOR 1151 SECTOR- -- -3 3 3 3 ROHTAK. ROHTAK. ROHTAK. ROHTAK. PAN NO.AAAJT0823C. PAN NO.AAAJT0823C. PAN NO.AAAJT0823C. PAN NO.AAAJT0823C. (APPELLANT) (RESPONDENT) APPELLANT BY : MS.SRUJANI MOHANTY DR. RESPONDENT BY : SHRI NAVEEN GUPTA ADVOCATE. ORDER ORDER ORDER ORDER PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI J J J JM : M : M : M : THE REVENUE IS IN APPEAL AGAINST THE CIT(A)S ORDE R DATED 29.10.2010 PERTAINING TO THE AY 2007-08. 2. THE VARIOUS GROUNDS OF APPEAL RAISED BY THE REVE NUE ARE DIRECTED AGAINST THE CIT(A)S ORDER IN DIRECTING TH E AO TO ADOPT RATE OF NET PROFIT FROM CONTRACT WORKS AT 5% AS AGAINST 12% APPLIED BY THE AO. 3. IN THIS CASE THE TOTAL INCOME ASSESSED BY THE A O WAS `13 11 370/- AFTER APPLYING NET PROFIT OF 12% ON TO TAL CONTRACT RECEIPTS AND AFTER ALLOWING DEDUCTIONS U/S 80P(2)(VI) AND 80 C OF THE ACT. IT HAS BEEN SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSES SEE THAT TOTAL INCOME AFTER GIVING APPEAL EFFECT TO CIT(A)S ORDER COMES TO `5 28 904/-. THEREFORE A RELIEF OF `7 82 466/- HA S BEEN GRANTED BY THE CIT(A) TO THE ASSESSEE. HE FURTHER POINTED OUT THA T THE TAX EFFECT ON THE RELIEF OF `7 82 466/- GRANTED TO THE ASSESSEE C OMES TO `2 34 740/- AFTER APPLYING RATE OF TAX AT 30%. IF SURCHARGE IS ADDED TO THE AFORESAID TAX OF `2 34 740/- THE TOTAL TAX EFFECT WOULD BE BELOW `3 ITA-6078/DEL/2010 2 LAKHS. HE THEREFORE POINTED OUT THAT IN THE LIGH T OF RECENT CIRCULAR OF THE BOARD BEING INSTRUCTION NO.3 DATED 9.2.2011 TH E APPEAL FILED BY THE REVENUE HAVING THE TAX EFFECT BELOW `3 LAKHS IS NOT MAINTAINABLE AS PER THE VIEW TAKEN BY THE ITAT DELHI BENCH IN TH E CASE OF ITO VS. BHAVYA SOFTECH (P) LTD. ORDER DATED 4.3.2011 (TO WHICH ONE OF US I.E. JM WAS A PARTY). A COPY OF THE SAME HAS BEEN PLACE D BEFORE US. 4. THE LEARNED DR ON THE OTHER HAND SUBMITTED THA T THE CIRCULAR DATED 9.2.2011 IS NOT APPLICABLE TO THE APPEALS FIL ED PRIOR TO THAT DATE. 5. RESPECTFULLY FOLLOWING THE VIEW OF THE COORDINAT E BENCH IN THE ABOVE REFERRED CASE WE HOLD THAT THIS APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE INASMUCH AS THE TAX EFFECT IN THE PRESENT CASE IS BELOW `3 LAKHS. WE FIND IT USEFUL TO REPRODUCE THE ORDER OF THE ITAT DELHI BENCH A IN THE CASE OF BHAVYA SOFTECH (P) L TD. (SUPRA) FOR READY REFERENCE AS UNDER:- 2. AT THE VERY OUT SET IT WAS SUBMITTED BY THE LD .AR OF THE ASSESSEE THAT IN THE PRESENT CASE THE TAX EFFEC T OF THE DISPUTE IS BELOW RS.3 LAKHS AND HENCE THIS APPEAL O F THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE BOARDS NEW INSTRUCTIONS NO.3 DATED 9.2.2011. 3. LD. AR OF THE ASSESSEE HAS SUBMITTED A COPY OF RECENT JUDGMENT OF HON'BLE DELHI HIGH COURT RENDERE D IN THE CASE OF CIT V. RAJAN RAMANEE IN I.T.A. NO.230/D EL/2011 DATED 18.2.2011 IN WHICH HON'BLE DELHI HIGH COURT H AS APPLIED THE BOARD INSTRUCTION NO.3 OF DATED 9 TH FEBRUARY 2011 ALTHOUGH THE APPEAL WAS FILED BY THE REVENUE BEFORE THIS DATE. IT IS A SUBMISSION OF THE LD. AR OF THE ASSESSEE THAT SINCE IT IS ACCEPTED BY HON'BLE DELHI HIGH COU RT THAT THIS BOARD INSTRUCTION DATED 9.2.2011 IS APPLICABLE FOR ALL PENDING APPEALS ALSO THE PRESENT APPEAL OF THE REV ENUE IS ALSO TO BE DISMISSED. 4. LD. DR OF THE REVENUE SUBMITTED THAT THIS BOARD INSTRUCTION IS APPLICABLE FOR ALL APPEALS OF THE RE VENUE WHICH ARE FILED AFTER THE DATE OF THIS BOARD INSTRU CTION AND THEREFORE THIS BOARD INSTRUCTION IS NOT APPLICABLE TO THE PRESENT APPEAL. ITA-6078/DEL/2010 3 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE TAX EFFECT IN THE PRESENT CASE IS BELOW RS.3 LAKH AND W E FIND THAT AS PER THIS BOARD INSTRUCTION NO.3 DATED 9.2.2 011 THE LIMIT OF TAX EFFECT FOR FILING THE APPEAL BEFORE TH E TRIBUNAL HAS BEEN INCREASED TO RS.3 LAKHS AND THE SAME FOR F ILING APPEAL BEFORE HONBLE HIGH COURT HAS BEEN INCREASED TO RS.10 LAKHS. IN THE CASE OF CIT V. RAJAN RAMANEE ( SUPRA) THE HON'BLE DELHI HIGH COURT HAS APPLIED THIS BOARD INSTRUCTION DATED 9.2.2011 AND DISMISSED THE APPEAL OF THE REVENUE BECAUSE OF LOW TAX EFFECT. IN THAT CASE AL SO THE APPEAL WAS FILED BY THE REVENUE BEFORE THE HON'BLE DELHI HIGH COURT PRIOR TO THE DATE OF THIS BOARD INSTRUCT ION AS SUBMITTED BY LD.AR OF THE ASSESSEE AND HENCE WE DO NOT FIND ANY MERIT IN THE SUBMISSION OF THE LD. DR OF T HE REVENUE THAT THIS BOARD INSTRUCTION IS APPLICABLE O NLY TO THOSE APPEALS WHICH ARE FILED BY THE REVENUE AFTER THE DATE OF THIS BOARD INSTRUCTION. SINCE THIS BOARD INSTRU CTION WAS APPLIED BY HON'BLE DELHI HIGH COURT TO PENDING APPE ALS ALSO THE SAME IS APPLICABLE IN THE PRESENT CASE AL SO. LD. DR OF THE REVENUE COULD NOT SHOW THAT THE TAX EFFEC T IN THE PRESENT CASE IS ABOVE RS.3 LAKHS AND HENCE THIS AP PEAL OF THE REVENUE IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT AS PER BOARD INSTRUCTION NO.3 OF 9.2.2011. 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED AS NOT MAINTAINABLE. DECISION PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH 2011. SD/- SD/- (K.G.BANSAL (K.G.BANSAL (K.G.BANSAL (K.G.BANSAL) )) ) (C.L.SETHI (C.L.SETHI (C.L.SETHI (C.L.SETHI) )) ) ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 18.03.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR ITA-6078/DEL/2010 4