2012 (7) TMI 335

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....219/A/2007, Asst. Year 2003-04) as per the following observations reproduced below:-   "3. From the side of the Revenue, Learned Departmental Representative has stated that though the assessee has declared a loss and the assessment has also been finalized at NIL income, but the question of addition of Gross Profit of Rs. 9,59,554/- might have the effect of the tax more than the prescribed limit, therefore, this appeal can independently be adjudicated upon. Alternatively, he has also contested that the question of NIL assessment where admittedly no tax liability has been imposed by the Assessee Officer are subject to controversy that whether in those cases where the addition involved is substantial; whether can be said to be covered ....

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....deduction of expenses by the appellant. On aggrieved by the order of the Ld.CIT(A) the department filed an appeal before the Hon'ble ITAT against the order of the Id. CIT(A). During the course of appellate proceedings before the Hon'ble ITAT, the issue was debated only on the basis of tax effect, because the tax effect therein was less than the prescribed limit and the Hon'ble ITAT dismissed the appeal filed by the Revenue relying on the decision of Hon'ble Delhi High Court in the CIT Vs. Mangalam Ricinus Ltd. (2008) 174 Taxman 186 (Delhi). The hon'ble ITAT has also stated in the appellate order that if the decision of Hon'ble ITAT is not acceptable miscellaneous petition to Hon'ble ITAT may be filed. In this case the question of addi....