M/S Meena Jewels And Pearls,, Hyderabad vs Department Of Income Tax

ITA No.297/Hyd/14 : Assessment year 2008-09

Dy. Commissioner of Income- V/s. M/s. Meena Jewels & Pearls, tax Circle 16(2), Hyderabad Hyderabad

(PAN - AAMFM 8114 F) (Appellant) (Respondent)

Appellant by : Shri Rajat Mitra DR

Respondent by : Shri P.Murali Mohan Rao

Date of Hearing 9.3.2015 Date of Pronouncement 9.3.2015

ORDER

Per P.M.Jagtap, Accountant Member :

This appeal is preferred by the Revenue against the order of the learned Commissioner of Income-tax(Appeals) V, Hyderabad dated 31.10.2013, whereby he deleted the addition of Rs.9,83,085 made by the Assessing Officer by estimating the gross profit of the assessee on gold and ornaments at 0.85% against 0.77% shown by the assessee.

2. We have heard the arguments of both the sides and also perused the relevant material on records. As submitted by the learned counsel for the assessee, at the outset, the tax effect involved in this appeal of the Revenue is less than the monetary limit of Rs.4 lakhs prescribed by the CBDT for filing the appeals 2 ITA No.297/Hyd/2014 M/s. Meena Jewels & Pearls, Hyderabad

before the Tribunal, and the same, therefore, is not maintainable. Although the Learned Departmental Representative has not disputed the fact that the tax effect involved in this appeal of the Revenue is less than Rs.4 lakhs, he has contended that the revised monetary limit of Rs.4 lakhs fixed by the CBDT vide Instruction No.5 of 2014 issued on 10th July, 2014 for filing of the departmental appeals before the Tribunal is applicable only to the appeals filed on or after 10th July,2014. He has contended that since the present appeal was filed by the Department on 25.2.2014, the revised monetary limit of Rs. 4 lakhs is not applicable to the same. In this regard, the learned counsel for the assessee has relied on the decision of the Kolkata Bench of the Tribunal in the case of ITO, Ward 3, Murshidabad V/s. Nabikchuddin Sk. rendered vide its order dated 12.8.2014 passed in ITA No.340/Kol/2012, wherein a similar argument raised on behalf of the Department was rejected by the Tribunal relying inter alia on the decision of the Hon'ble Gujarat High Court in the case of Sureshchadnra Durga Prasad Khatod(HUF) (253 CTR 492)(Guj), wherein it was held, keeping in view the main objective of the Instruction issued by the CBDT to reduce the pending litigation where the tax effect is considerably low or small, that the same would apply to pending appeals also. Keeping in view the decision of the coordinate bench of the Tribunal in the case of Nabikchuddin Sk.(supra), we hold that the present appeal filed by the department involving a tax effect of less than the monetary limit of Rs.4 lakhs fixed by the CBDT in its Instruction No.5 of 2014 dated 10th July, 2014 for filing of appeals by the Department before the Tribunal, is not maintainable. The same is accordingly dismissed.

3 ITA No.297/Hyd/2014 M/s. Meena Jewels & Pearls, Hyderabad

3. In the result, appeal of the Revenue is dismissed.

Order pronounced in the court at the conclusion of hearing on the appeal on 9th March, 2015.

Sd/- Sd/- (Asha Vijayaraghavan) (P.M.Jagtap) Judicial Member Accountant Member

Dt/- 9th March, 2015

Copy forwarded to:

1. M/s. Meena Jewels & Pearls, 5-9-58/1-15 Babukhan Estate, Basheerbagh, Hyderabad

2. Dy. Commissioner of Income-tax Circle 16(2), Hyderabad

3. Commissioner of Income-tax(Appeals) V Hyderabad

4. Commissioner of Income-tax IV, Hyderabad

5. Departmental Representative, ITAT, Hyderabad. B.V.S