If the tax effect is less than minimum than it can be avoidable

IN THE INCOME-TAX APPELLATE TRIBUNAL

CHENNAI ‘B’ BENCH, CHENNAI.

Before Shri Hari Om Maratha, Judicial Member and

Shri Abraham P. George, Accountant Member

I.T.A. Nos. 503 and 504/Mds/2011

Assessment Year: 2001-02 and 2002-03

The Assistant Commissioner of

Income Tax,

Company Circle VI(2),

Aayakar Bhavan, New Block,

Chennai 600 034.

(Appellant)

Vs.

M/s. Shree Shakthi Ware House (P)

Ltd., 2-C, Riaz Garden, 29,

Kodambakkam High Road,

Nungambakkam, Chennai 600 034.

[PAN:AACCS9723M]

(Respondent)

Revenue by : Shri R.B. Naik, CIT – DR

Assessee by : Shri M. Karunakaran, Advocate

Date of Hearing : 12.12.2011

Date of pronouncement 12.12.2011

ORDER

PER BENCH

These are the appeals filed by the Revenue against the separate orders dated 03.01.2011 for the assessment years 2001-02 and 2002-03 of ld. CIT(A) V, Chennai.

2. In appeal for the assessment year 2001-02, the Revenue assails deletion of additions of Rs.3,60,000/- and Rs.1,56,388/- made by the ld. CIT(A). During the course of hearing, it was admitted by the ld. DR that the tax effect in this case was less than Rs.3 lakhs.

3. Similarly, for the assessment year 2002-03, the Revenue has assailed the deletion of Rs.5,11,494/-. The tax effect here is also less than Rs.3 lakhs and even below Rs.2 lakhs.

4. In so far as the assessment year 2001-02, the total assessed income was only Rs.2,36,765/- and total tax thereon was Rs.93,641/- only.

5. On both the years, we are of the opinion that Circular No.3/2011 of CBDT will apply and due to low tax effect, the appeals of the Revenue are not maintainable. There is no case for the Revenue that the issue involved has got any cascading effect over other years or on the assessments of any group of which assessee is a part.

6. In the result, both the appeals of the Revenue are dismissed.

Order pronounced in the open Court on 12.12.2011.

               Sd/-                                                                                               Sd/-

(HARI OM MARATHA)                                                   (ABRAHAM P. GEORGE)

  JUDICIAL MEMBER                                                      ACCOUNTANT MEMBER

Chennai, Dated, the 12.12.2011

Vm/-

To: The assessee//A.O./CIT(A)/CIT/D.R.