Ashok S. Suvarna, Mumbai vs Department Of Income Tax

आयकर अपील य अ धकरण, मंब ु ई IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES 'A' MUMBAI सव ी आय.पी. बंसल, या यक सद य एवं डी. क णाकर राव,ु लेखा सद य

BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND

SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.8714/MUM/2010 नधा रण वष /Assessment Year 2007-08 The I TO 24(3) (1), बनाम/ Shri Ashok S. Suvarna, Room No.703, 7 t h Floor, C- Prop. M/s. Ashwarya Tools & Vs. 11, BKC, Bandra(E), Dies, 135, Shanta Indls. Mumbai -51. Estate, I.B.Patel Road, Goregaon East, Mumbai 400063 थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AAFPS 6861G (अपीलाथ /Appellant) .. ( यथ / Respondent)

Appellant by Shri Jeevanlal Lavidiya Respondent by Shri B.V.Jhaveri सनु वाई क" तार$ख / Da te o f Hearing : 10/06/2015 घोषणा क" तार$ख /Date of Pronouncement : 10/06/2015

आदे श / O R D E R

PER I.P.BANSAL,J.M:

This is an appeal filed by the Revenue and it is directed against the order passed Ld. CIT(A)-34, Mumbai for the assessment year 2007-08.

2. As the figure mentioned in original grounds of appeal was not correct, revised grounds of appeal have been filed by Revenue which read as under:

"1. On the facts & in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made by the Assessing Officer amounting to Rs.9,23,915/- as bogus purchase, ignoring the fact that the basic existence of the four parties remained unestabilised in the enquiries made during the assessment proceedings.

2 आयकर अपील सं. / ITA No.8714/MUM/2010 नधा रण वष /Assessment Year 2007-08

The appellant prays that the order of the CIT(A) on the grounds be set aside and matter may be decided according to law. The appellant craves leave to amend or alter any ground or add new ground which may be necessary.

2. It is seen from the grounds of appeal that the deletion of addition contested by the Revenue is only a sum of Rs.9,23,915/-, on which tax effect is less than Rs.4.00 lacs. Vide CBDT Instruction No.5/2014 F.No.279/MISC.142/2007-ITJ(PT)] dated 10/07/2014, the tax effect limit for filing the appeal before the Tribunal by the Revenue was enhanced from Rs.3.00 lacs to Rs.4.00 lacs.

4. We have considered the submissions of both the parties. However, according to following decisions of Hon'ble Jurisdictional High Court, such notifications issued under section 268A would be applicable even to the appeals filed before issue of the notification if the limit is enhanced:

1. In the case of CIT vs. Smt. Vijaya Kavekar (2013 30 taxmann.com 412) it was held as under:

Section 260A, read with Section 268A, of the Income-tax Act, 1961 - High Court - Appeals to - Tax effect - Whether Instruction No. 3 of 2011, dated 9- 2-2011, specifying monetary limit of Rs. 10 lakhs for maintainability of appeal before High Court is applicable on pending appeals as well - Held, yes - Whether, therefore, where tax effect in revenue's appeals was less than Rs. 10 lakhs which was filed even prior to issue of Instruction dated 9-2-2011, same was to be dismissed being non-maintainable - Held, yes [In favour of assessee]

2. In the case of CIT vs. Madhukar Imandar (2009 185 Taxman 101] it was held as under:

Section 268A, read with section 119, of the Income-tax Act, 1961 - Appeal or application for reference - Filing of, by income-tax authority - Whether circular/Income-tax Instruction No. 5 of 2008, dated 15-5-2008 issued by CBDT directing income-tax authorities not to file appeals if tax effect is less than Rs. 4 lakhs would be applicable to cases pending before High Court as on 15-5-2008 either for admission or for final disposal, even though said appeals and/or petitions were filed before High Court prior to 15-5- 2008 - Held, yes

3 आयकर अपील सं. / ITA No.8714/MUM/2010 नधा रण वष /Assessment Year 2007-08

5. In this view of the situation, we dismiss the appeal filed by the Revenue on account of low tax effect as per aforementioned instruction issued by CBDT.

Order pronounced in the open court on 10/06/2015 आदे श क" घोषणा खुले यायालय म* +दनांकः 10/06/2015 को क" गई ।

Sd/- Sd/- (डी. क णाकर रावु / D.KARUNAKARA RAO) (आय.पी. बंसल / I.P. BANSAL) लेखा सद य / ACCOUNTANT MEMBER या यक सद य / JUDICIAL MEMBER मंब ु ई Mumbai; +दनांक Dated 10/06/2015 आदे श क त ल प अ!े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. आयकर आयु/त(अपील) / The CIT(A)- 4. आयकर आयु/त / CIT

5. 0वभागीय त न2ध, आयकर अपील$य अ2धकरण, मुंबई / DR, ITAT, Mumbai

6. गाड फाईल / Guard file.

आदे शानुसार/ BY ORDER, स या0पत त //True Copy// उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, मुंबई / ITAT, Mumbai व. न.स./Vm, Sr. PS