Sri Ch. Krishna Prasad, , Nellore vs Department Of Income Tax

ITA No.984/Hyd/12 : Assessment year 2009-10

Income Tax Officer Ward 3, V/s. Shri Ch. Krishna Prasad, Nellore Nellore (PAN - AFZPC 3750 M)

(Appellant) (Respondent)

Appellant by : Shri Rajat Mitra DR

Respondent by : None

Date of Hearing 02.03.2015 Date of Pronouncement 02.03.2015

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) Guntur dated 27.3.2012, whereby he deleted the disallowance of Rs.9,37,017 made by the Assessing Officer under S.40a(ia) of the Income Tax Act,1961

2. At the time of hearing before us, nobody has appeared on behalf of the assessee. The appeal of the Revenue is therefore, being disposed off ex-parte qua the respondent assessee. We have heard the arguments of both the sides and also perused the relevant material on records. At the outset, it is observed that 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 before the Tribunal, and the same, therefore, is not maintainable. Although the Learned Departmental Representative 2 ITA No.984/Hyd/2012 Shri Ch.Krishna Prasad, Nellore

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 22.6.2012, the revised monetary limit of Rs. 4 lakhs is not applicable to the same. We have considered similar contentions of the Revenue in the case of ITO V/s. Sri Santhoshi Transport, Yellandu (Khammam District) in ITA No.615/Hyd/2013 for assessment year 2006-07, and decided the issue relating to the applicability of the CBDT Instruction No.5 of 2014 issued on 10th July, 2014 in respect of appeals filed prior to 10.7.2014, against the department vide para 2 of our order dated 23.2.2015, which reads as follows-

"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 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 4.7.2013, 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 3 ITA No.984/Hyd/2012 Shri Ch.Krishna Prasad, Nellore

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."

Keeping in view the consistent view taken by the coordinate benches of this Tribunal, 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. In the result, appeal of the Revenue is dismissed.

Order pronounced in the court at the conclusion of hearing on the appeal on 2nd March, 2015 Sd/- Sd/-

(Asha Vijayaraghavan) (P.M.Jagtap) Judicial Member Accountant Member

Dt/- 2nd March, 2015

Copy forwarded to:

1. Shri Ch. Krishna Prasad, D.No.23-1242, Akkannavari Street, Fathekhan Pet, Nellore.

2. Income Tax Officer Ward 3, Nellore

3. Commissioner of Income-tax(Appeals) Guntur

4. Commissioner of Income-tax, Guntur

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