The ACIT, Vapi Circle,, Vapi v. M/s. Parmar Construction, Vapi

ITA 4078/AHD/2007 | 2003-2004
Pronouncement Date: 31-05-2010 | Result: Dismissed

Appeal Details

RSA Number 407820514 RSA 2007
Assessee PAN AADFP1940R
Bench Ahmedabad
Appeal Number ITA 4078/AHD/2007
Duration Of Justice 2 year(s) 6 month(s) 23 day(s)
Appellant The ACIT, Vapi Circle,, Vapi
Respondent M/s. Parmar Construction, Vapi
Appeal Type Income Tax Appeal
Pronouncement Date 31-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 31-05-2010
Date Of Final Hearing 31-05-2010
Next Hearing Date 31-05-2010
Assessment Year 2003-2004
Appeal Filed On 07-11-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI MUKUL SHRAWAT JUDICIAL MEMBER AND SHRI A.N. PAHUJA ACCOUNTANT MEMBER DATE OF HEARING : 31/05/2010 DRAFTED ON:31/05/ 2010 ITA NOS.4078 & 4079/AHD/2007 ASSESSMENT YEARS : 2003-04 & 2004-05 RESPECTIVELY THE ASST.CIT VAPI CIRCLE VAPI VS. M/S.PARMAR CONSTRUCTION 11 GURUDEV COMPLEX SILVASSA ROAD VAPI PAN/GIR NO. : AADFP 1940 R (APPELLANT) .. (RESPONDENT) ASSESSEE BY : SHRI J.P. SHAH REVENUE BY: SHRI M.C. PANDIT SR. D.R. O R D E R PER SHRI MUKUL SHRAWAT JUDICIAL MEMBER : BOTH THESE APPEALS FILED BY THE REVENUE ARE AGAINST THE SEPARATE ORDERS OF THE CIT(APPEALS)-II AHMEDABAD DATED 17- 08-2007 FOR ASSESSMENT YEARS 2003-04 & 2004-05 BY RAISING FOLL OWING COMMON GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON A CCOUNT OF UNACCOUNTED PROFIT OF RS.2 37 076/- (FOR A.Y.2003-0 4) AND RS.3 99 600/- (FOR A.Y. 2004-05). 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION O N THE GROUND THAT NO ADDITION CAN BE MADE ON THE BASIS OF PAPER FOUND FROM THE PREMISE OF THIRD PARTY WITHOUT CONSI DERING THE ITA NOS.4078 & 4079/AHD/2 007 ASSTT.CIT VAPI M/S.PARMAR CONSTRUCTION ASST.YEARS -2003-04 & 2004-05 RESPECTIVELY - 2 - FACT THAT THE THEN CIT(A) HAD CONFIRMED THE ADDITIO N BASED ON THE SAID PAPERS SEIZED. 2. AT THE OUTSET A QUERY WAS RAISED BY THE BENCH A S TO THE MAINTAINABILITY OF THE APPEALS IN VIEW OF RECENT C BDT CIRCULAR RESTRICTING FILING OF APPEALS BY THE REVENUE THE L EARNED DR DID NOT CONTROVERT THE SAME AND STATED THAT THE TAX EFFECT IN THE PRESENT CASES ARE BELOW THE TAX LIMIT PRESCRIBED THE CBDT. LEARNED C OUNSEL FOR THE ASSESSEE CONTENDS THAT IN VIEW OF THE VARIOUS INSTR UCTIONS OF THE CBDT RESTRICTING THE FILING OF APPEALS BEFORE THE APPELL ATE TRIBUNALS HIGH COURTS AND SUPREME COURT THE APPEALS FILED BY THE REVENUE SHOULD BE DISMISSED IN LIMINE . 3. AFTER HAVING HEARD BOTH PARTIES CONSIDERING THE MATERIAL AVAILABLE ON RECORD AND THE CBDT CIRCULARS ON THIS ISSUE WE FIND THAT ITAT IS TAKING CONSISTENT VIEW IN NUMBER OF CASES ABOUT ADM ISSIBILITY OF APPEAL(S) FILED BY THE REVENUE IN VIEW OF VARIOUS I NSTRUCTIONS ISSUED BY CBDT FROM TIME TO TIME VIZ. INSTRUCTION NO.1979 DA TED 27-3-2000 NO.1985 DATED 29-6-2000 NO.6 OF 2003 DATED 17-07-2 003 NO.19 OF 2003 DATED 23-12-2003 NO.5/2004 DATED 27-5-2004 NO.2/2005 DATED 24-10-2005 AND NO.5/2007 DATED 16-7-2007 AND LASTLY INSTRUCTION NO.F.NO.279/MISC.142/2007-IT DATED 15-5-2008 WHEREI N MONETARY LIMITS FOR FILING DEPARTMENTAL APPEALS (INCOME-TAX MATTERS) AND OTHER CONDITIONS WERE SPECIFIED FOR FILING APPEALS BEFOR E APPELLATE TRIBUNALS HIGH COURTS AND SUPREME COURT. DECISION OF COORDIN ATING BENCH OF ITAT RAJKOT IN THE CASE OF ACIT VS. RAJOO ENGINEE RS LTD.[2006] 100 ITA NOS.4078 & 4079/AHD/2 007 ASSTT.CIT VAPI M/S.PARMAR CONSTRUCTION ASST.YEARS -2003-04 & 2004-05 RESPECTIVELY - 3 - ITD 555 WHEREIN THE HON'BLE BENCH HAS DISMISSED TH E REVENUES APPEAL BY HOLDING AS UNDER (HEAD NOTES):- IT IS TRUE THAT THE HIGH COURT DECISION IN COMMISS IONER OF INCOME-TAX V. PITHWA ENGG. WORKS [2005] 276 ITR 519 WAS NOT D EALING WITH THE NEW LIMIT OF THE CIRCULAR DATED 24-10-2005. IT WAS WITH REFERENCE TO THE EARLIER CIRCULAR WHERE REFERENCE WAS NOT REQUIRED T O BE FILED TO THE HIGH COURT IF THE TAX EFFECT WAS LESS THAN RS.2 LAKHS. THE CONTENTION OF THE REVENUE IN THAT CASE WAS THAT RS.2 LAKHS LIMIT WAS INCREASED BY CIRCULAR DATED 27-3-2000 AND PRIOR TO THAT THE LIMIT WAS ON LY RS.50 000/- AND THE CONTENTION OF THE REVENUE WAS THAT THE NEW LIMI T WOULD NOT BE APPLICABLE TO THE OLD REFERENCES. THE HIGH COURT R EJECTED THE SAID CONTENTION OF THE REVENUE. [PARAGRAPH 4]. IN THOSE CIRCUMSTANCES THOUGH THE SAID HIGH COURT DECISION DID NOT DEAL WITH THE CIRCULAR DATED 24-10-2005 BUT IT HAD DEALT WITH THE EARLIER CIRCULAR AND THE LIMITS OF THAT CIRCULAR WERE APPLI ED EVEN TO THE CASES WHICH WERE PRIOR TO THE OLD CIRCULAR. THEREFORE TH E RATIO OF THAT DECISION WAS APPLICABLE IN THE INSTANT CASE AS WELL . THE CBDT HAS TAKEN A POLICY DECISION NOT TO FILE APPEALS IN SUCH TYPE OF CASES AND THE CIRCULAR IS BINDING ON THE REVENUE EVEN TO APPEALS FILED BEFORE 31-10- 2005 AND THE DEPTT.. WOULD NOT BE JUSTIFIED IN PROC EEDING WITH THOSE APPEALS WITHIN THE MONETARY LIMIT OF TAX EFFECT PRE SCRIBED IN THE CIRCULAR DATED 24-10-2005 [PARAGRAPH 5]. THE CONTENTION OF THE REVENUE THAT THE CASE OF THE ASSESSEE WAS COVERED BY THE EXCEPTION 3 HAD ALSO NO FORCE INASMUCH AS TH E SAID EXCEPTION PROVIDES THAT THE CBDT HAS ALSO DECIDED THAT IN CAS ES INVOLVING SUBSTANTIAL QUESTION OF LAW OF IMPORTANCE AS WELL A S IN CASES WHERE THE SAME QUESTION OF LAW WILL REPEATEDLY ARISE EITHER IN THE CASE CONCERNED ITA NOS.4078 & 4079/AHD/2 007 ASSTT.CIT VAPI M/S.PARMAR CONSTRUCTION ASST.YEARS -2003-04 & 2004-05 RESPECTIVELY - 4 - OR IN SIMILAR CASES SHOULD BE SEPARATELY CONSIDERE D ON MERITS WITHOUT BEING HINDERED BY THE MONETARY LIMITS [PARAGRAPH 6] . 4. IN THIS VIEW OF THE MATTER RESPECTFULLY FOLLOWI NG VARIOUS ORDERS OF THIS TRIBUNAL ON THIS ISSUE INCLUDING THE DECISION CITED ABOVE WE DISMISS THE APPEALS OF THE REVENUE IN LIMINE . 5. IN THE RESULT BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER SIGNED DATED AND PRONOUNCED IN THE COURT O 3 1 ST MAY 2010. SD/- SD/- ( A.N. PAHUJA ) ( MUKUL SHRAWA T ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 31/ 05 /2010 T.C. NAIR SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-II AHMEDABAD 5. THE DR AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD