Hemkund Transport Services,, Jammu vs Department Of Income Tax

Income Tax Officer, vs. M/s. Hemkund Transport Service, Ward 1(1), Jammu. Transport Nagar, Jammu. (Appellant) (Respondent)

Appellant by:Sh. V.K.Singh, DR Respondent by:Sh.Joginder Singh, CA

Date of hearing:19/02/2015 Date of pronouncement: 19.02.2015

ORDER

PER A.D.JAIN, JM:

This is department's appeal for the assessment year 2009-10 against

the order of the CIT(A), Jammu dated 22.07.2014. The Revenue has raised

the following grounds of appeal:

"1. Whether the CIT(A), Jammu was right in law to allow relief in respect of addition on account of adhoc disallowance of expenses as the AO has requested the CIT(A) in the remand report that the assessee did not deserve any relief in respect of the same.

2 IT A No.607(Asr)/2014 2. Whether the CIT(A),Jammu was right in law in allowing relief in respect of addition on account of bogus creditors when the assessee had failed to establish their genuineness during the assessment proceedings.

3. Whether the CIT(A),Jammu was right in law in allowing relief on account of unexplained provision for expenses as the AO has requested the CIT(A) in the remand report that the assessee did not deserve any relief in respect of the same."

2. At the time of hearing the ld. counsel for the assessee raised a

preliminary objection that the tax effect involved in the Revenue's appeal is

less than Rs.4 lacs. Therefore, the present appeal filed by the Department

may be dismissed, as the same is not maintainable being contrary to CBDT's

Instruction No.5 of 2014 dated 10th July, 2014.

3. On the other hand, the Ld. DR relied upon the orders of the authorities

below.

4. After hearing both the parties, it is seen that the tax effect involved in

this appeal is less than Rs.4,00,000/-. Hence, as per CBDT Instruction No. 5

of 2014, dated 10th July, 2014, which is binding on the department, the

department is precluded from filing the present appeal. We also find that the

Revenue has filed the present appeal on 08.10.2014 much after the issuance

of the said CBDT Instruction No. 5 of 2014, which is effective from 10th

July, 2014. Therefore, in our considered opinion, the said Instruction of

CBDT is binding upon the Department and the present appeal has been filed 3 IT A No.607(Asr)/2014

contrary to the said Instruction issued by the CBDT. Accordingly, the

appeal filed by the Revenue is dismissed, as not maintainable.

5. In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 19th February, 2015.

Sd/- Sd/- (B.P. JAIN) (A.D.JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19th February, 2015 /SKR/ Copy of the order forwarded to:

1. The Assessee:M/s. Hemkund Transport Service, Jammu.

2. The ITO Ward-1(1), Jammu.

3. The CIT(A), Jammu

4. The CIT, Jammu.

5. The SR DR, ITAT, Amritsar.

True copy By order

(Assistant Registrar) Income Tax Appellate Tribunal, Amritsar Bench: Amritsar.