The DCIT, Central Circle-2(1),, Ahmedabad v. Jindal Worldwide Limited,, Ahmedabad

MA 271/AHD/2009 | 2001-2002
Pronouncement Date: 22-01-2010 | Result: Allowed

Appeal Details

RSA Number 27120524 RSA 2009
Assessee PAN AAACJ3816Q
Bench Ahmedabad
Appeal Number MA 271/AHD/2009
Duration Of Justice 5 month(s) 8 day(s)
Appellant The DCIT, Central Circle-2(1),, Ahmedabad
Respondent Jindal Worldwide Limited,, Ahmedabad
Appeal Type Miscellaneous Application
Pronouncement Date 22-01-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 22-01-2010
Assessment Year 2001-2002
Appeal Filed On 13-08-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL : B BENCH : AHMEDABAD (BEFORE HONBLE SHRI T.K. SHARMA J.M. & HONBLE SH RI N.S. SAINI A.M.) M.A. NO. 271 /AHD./2009 (ARISING OUT OF I.T.A. NO. 844/AHD./2005) ASSESSMENT YEAR : 2001-2002 ASSISTANT COMMISSIONER OF INCOME TAX -VS.- M/S. JINDAL WORLDWIDE LTD. CIRCLE-4 AHMEDABAD AHMEDABAD (PAN : AAACJ 381 6 Q) (APPLICANT) (R ESPONDENT) APPLICANT BY : SHRI C.K. MI SHRA SR. D.R. RESPONDENT BY : SHRI VIJAY RANJA N O R D E R PER SHRI T.K. SHARMA JUDICIAL MEMBER :- THIS MISCELLANEOUS APPLICATION FILED BY THE DEPART MENT FOR THE ASSESSMENT YEAR 2001-02 IS ARISING OUT OF THE D ECISION DATED 03.02.2009 OF THE ITAT B BENCH AHMEDABAD IN I.T.A. NO. 844/AHD./2005. THE CONTENTS OF THE MISCELLANEOUS APPLICATION FILED BY THE DEPARTMENT READ AS UNDER :- IN THE ABOVE APPEAL THE HON'BLE ITAT HAS DISMISSE D THE APPEAL OF THE DEPARTMENT ON THE GROUND THAT THE TAX EFFECT INVOLV ED IS LESS THAN RS. 2 LACS. IT WAS HELD THAT APPEAL OF THE DEPARTMENT WAS NOT MAINTAIN ABLE IN VIEW OF CBDTS CIRCULAR NO. 2 OF 2005 DATED 24.10.2005. 2. THE HON'BLE ITAT AHMEDABAD B BENCH HAS ERRED IN LAW AND FACTS IN DISMISSING THE APPEAL OF THE REVENUE IN VIEW OF DEC ISION OF HON'BLE SUPREME COURT IN THE CASE OF ITR NOS. 69/98 AND 70/98 DATED 24.02.99 AND ALSO DECISION OF MADHYA PRADESH HIGH COURT IN THE CASE OF CIT VS.- BHAGWAN CLOTH STORE (2002) 170 TAXATION 503. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE TAX EFFECT IN THIS CASE IS RS.6 40 000/- WHICH IS NOT BELOW RS. 2 LACS AND HEN CE THE DEPARTMENTS APPEAL CANNOT BE DISMISSED IN LIMINE. 4. IT IS THEREFORE PRAYED THAT THE ORDER IN ITA N O. 844/AHD./2005 DATED 3/2/2009 MAY KINDLY BE RECALLED AND DEPARTMENTS APPEAL MAY BE DECIDED ON MERITS. 2. AT THE TIME OF HEARING OF THIS MISCELLANEOUS APP LICATION SHRI C.K. MISHRA LD. SENIOR D.R. APPEARED ON BEHALF OF THE REVENUE AND OBJECTED TO T HE DISMISSAL OF APPEAL IN LIMINE BECAUSE WHEN THE INCOME IS ASSESSED AT NIL LOSSES MAY BE CARRIED FO RWARD TO NEXT YEAR WHICH WILL AFFECT THE CHARGE OF TAX. IN SUPPORT OF THIS THE LD. D.R. RELIED ON THE INST RUCTION NO. 5 OF 2008 DATED 15.05.2008 ISSUED BY CB DT WHEREIN CBDT IN PARA 4 HAS STATED THAT IN LOSS CASE S NOTIONAL TAX EFFECT SHOULD BE TAKEN INTO ACCOUNT . THE NOTIONAL TAX EFFECT IN THIS CASE IS RS.6 40 000/- WHICH IS MORE THAN MONETARY LIMIT FOR FILING THE AP PEAL IS FIXED BY THE CBDT. THE LD. D.R. ALSO RELIED ON THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE C ASE OF CIT VS.- CONCORD PHARMACEUTICALS REPORTED IN (2 008) 220 CTR (GUJ.) 117 WHEREIN IT WAS HELD THAT 2 WHEN DEPARTMENT OBJECTS TO DISMISSAL OF APPEAL TRI BUNAL HAS NO OPTION BUT TO DECIDE THE APPEAL OF REVENUE ON MERIT. IN THIS CASE AT THE TIME OF HEAR ING OF THE APPEAL SHRI B.S. GEHLOT CIT-DR APPEARI NG ON BEHALF OF THE DEPARTMENT OBJECTED TO THE DISMISS AL OF THE REVENUES APPEAL IN LIMINE ON THE BASIS O F TAX EFFECT BEING LESS THAN RS.2 LAKHS. THE APPEAL W AS FILED BY THE REVENUE ON 03.02.2009 AFTER CONSIDERING THE INSTRUCTION NO. 5 OF 2008 DATED 15. 05.2008 ISSUED BY THE CBDT. THEREFORE TRIBUNAL HAS COMMITTED A MISTAKE IN DISMISSING THE APPEAL IN LIM INE TRIBUNAL MAY RECALL ITS ORDER DATED 03.02.2009 FIX THE APPEAL OF THE REVENUE FOR DECIDING THE SAME AFRESH ON MERITS IN ACCORDANCE WITH LAW. 3. ON THE OTHER HAND SHRI VIJAY RANJAN LD. COUNSE L OF THE ASSESSEE SUPPORTED THE ORDER OF TRIBUNAL DATED 03.02.2009 AND PLEADED THAT THE ORDER OF TRIB UNAL DATED 03.02.2009 BE UPHELD. 4. HAVING HEARD THE BOTH THE SIDES WE HAVE CAREFUL LY GONE THROUGH THE CONTENTS OF MISCELLANEOUS APPLICATION AS WELL AS THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF CIT VS.- CONCORD PHARMACEUTICALS (SUPRA) AS WELL AS INSTRUCTION NO. 5 OF 2008 DATED 15.05.2008 ISSUED BY THE CBDT. HE TAX EFFECT AS PER INSTRUCTION NO. 5 OF 2008 DATED 1 5.05.2008 OF CBDT IS RS.6 40 000/-. THE TAX EFFECT IS MORE THAN RS.2 LAKHS. THE APPEAL WAS FILED KEEPING IN VIEW THE INSTRUCTION NO. 5 OF 2008 DATED 15.05.2008 (SUPRA) ISSUED BY THE CBDT. THEREFORE IN OUR OPINION TRIBUNAL HAS COMMITTED THE MISTAKE IN DISMISSING THE APPEAL OF THE REVENUE BY IGNORING THE LATEST INSTRUCTION NO. 5 OF 2008 DATED 15.05.2 008 ISSUED BY THE CBDT. IN VIEW OF THIS WE HEREBY RECA LL THE DECISION OF THE TRIBUNAL DATED 03.02.2009 AN D DIRECT THE REGISTRY TO FIX THE APPEAL OF THE REVENU E SO THAT IT MAY BE DECIDED ON MERITS AFTER GIVING OPPORTUNITY OF BEING HEARD TO BOTH THE SIDES. THE R EGISTRY IS DIRECTED ACCORDINGLY. 5. IN THE RESULT THE MISCELLANEOUS APPLICATION F ILED BY THE REVENUE IS ALLOWED. THE ORDER PRONOUNCED IN THE COURT ON 22 .01.2010. SD/- SD/- (N.S. SAINI) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22 / 01 / 2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT 3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R. ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT AHMEDABAD LAHA/SR.P.S.