Indian Tin & Metal Works(p) Ltd., Kolkata V. I.T.O Wd - 1(2),Kol., Kolkata

CO 151/KOL/2012

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 9743 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-07-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2003-2004
• Appeal Filed On: 21-12-2012
• Court: TRIBUNAL
• Department Lawyers: A P ROY
• Assessee Lawyers: A K TIBREWAL
• Keywords: Tax effect
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C , KOLKATA [BEFORE HONBLE SRI MAHAVIR SINGH, JM & HONBLE S RI SHAMIM YAHYA, AM ] ITA NOS.1634-1637/KOL/2012 ASSESSMENT YEARS : 2001-02,2003-04,2004-05 & 2006-07 ( APPELLANT ) (RESPONDENT) I.T.O., WARD-1(2) . -VS- M/S.INDIA TIN BOX & META L KOLKATA WORKS PVT. LTD.,KOLKATA (PAN:AAACI 6441 C) C.O.NOS.151-153/KOL/2012 (A/O ITA NOS.1635-1637/KOL/2012 ASSESSMENT YEARS : 2003-04,2004-05 & 2006-07 ( APPELLANT ) (RESPONDENT) M/S.INDIA TIN BOX & METAL -VS- I.T.O., WARD-1(2), WORKS PVT.LTD., KOLKATA KOLKATA (PAN:AAACI 6441 C) FOR THE DEPARTMENT SHRI A.P.ROY, JCIT, SR.DR FOR THE ASSESSEE SHRI A.K.TIBREWAL, FCA DATE OF HEARING : 03.07.2014 DATE OF PRONOUNCEMENT : 03. 07.2014. ORDER PER BENCH THESE APPEALS FILED BY THE REVENUE AND THE ASSESSE E EMANATE OUT OF A COMMON ORDER OF LD. CIT(A)-I, KOLKATA DATED 02.08.2 012 AND PERTAIN TO ASSESSMENT YEARS 2001-02, 2003-04, 2004-05 AND 2006-07. ITA NOS.1634-1637/KOL/2012(REVENUES APPEAL): 2. AT THE OUTSET IN THIS CASE THE LD. COUNSEL OF TH E ASSESSEE SUBMITTED THAT THE TAX EFFECT INVOLVED IN THESE CASES IS LESS THAN RS. 3 L AKHS, LIMIT FIXED BY THE CBDT FOR FILING APPEALS BEFORE ITAT IN EACH APPEAL. IN THIS REGARD THE LD. COUNSEL OF THE ASSESSEE REFERRED TO THE INSTRUCTION NO.3/2011 DATE D 09.02.2011 ISSUED BY THE CBDT. ITA.NO.1634-1637/KOL/2012 & CO NO.151-153/KOL/2012 M/S.INDIA TIN BOX & METAL WORKS PVT. LTD. KO LKATA A.YRS.2001-02, 2003-04, 2004-05 & 2006-07 2 THE LD. COUNSEL OF THE ASSESSEE ALSO BROUGHT TO OUR NOTICE PARA 5 OF THE SAID INSTRUCTION AS UNDER :- 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL, CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHIC H THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIE D IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN OTHER WORDS, HENCEFORTH, APPEALS CAN BE FILED ONLY WITH REFERENCE TO THE TAX EFFECT IN THE RELEVANT AS SESSMENT YEAR. HOWEVER, IN CASE OF A COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTH ORITY, WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEAL SHALL BE FILED IN RESPECT OF ALL SUCH ASSESSMENT YEARS EV EN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S), I F IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR (S) IN WHICH TAX EFFECT EXCEEDS THE M ONETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER/JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 2.1. IN VIEW OF THE ABOVE, THE LD. COUNSEL OF THE A SSESSEE SUBMITTED THAT THOUGH THIS IS A COMPOSITE ORDER THE TAX EFFECT FOR EACH YEAR O F APPEAL IS LESS THAN RS,3 LAKHS, THE LIMIT FIXED BY THE CBDT FOR FIXING THE APPEAL BEFOR E ITAT. IN THIS REGARD, THE LD. COUNSEL OF THE ASSESSEE FURTHER PLACED RELIANCE UPO N THE DECISION OF ITAT, HYDERABAD BENCH IN THE CASE OF ITO VS SHRI M.SUBBA KRISHNA KU MAR IN ITA NO.1264 AND 1265/HYD/11 VIDE ORDER DATED 3.10.2011. IN THIS CAS E IT WAS HELD THAT WE HAVE HEARD THE PARTIES. IT IS AN UNDISPUTED FAC T THAT THE TAX EFFECT IN EACH OF THESE APPEALS OF THE REVENUE IS LESS THAN RS.3 LAKHS. WE FIND IN VIEW OF THE INSTRUCTION NO.3 OF 2011 [F.NO.279/MISC.142/2007-ITJ], DATED 9 TH FEBRUARY, 201 ISSUED BY THE CBDT, THE PRESENT APPEALS OF THE REVENUE INVOLVING TAX EF FECT OF LESS THAN RS.3LAKHS, ARE NOT MAINTAINABLE AND ACCORDINGLY THESE APPEALS OF THE R EVENUE ARE DISMISSED IN LIMINE. 3. IN VIEW OF THE ABOVE SAID SUBMISSIONS THE LD. CO UNSEL OF THE ASSESSEE SUBMITTED THAT THE APPEALS FILED BY THE REVENUE ARE NOT MAINT AINABLE. THE LD. DR COULD NOT CONTRADICT THE ABOVE SUBMISSIONS OF THE LD. COUNSEL OF THE ASSESSEE. ACCORDINGLY IN VIEW OF THE CBDT INSTRUCTION AND PRECEDENTS CITED A BOVE WE HOLD THAT THE APPEALS FILED BY THE REVENUE IN THESE CASES ARE NOT MAINTAI NABLE ON ACCOUNT OF TAX EFFECT. ACCORDINGLY THESE APPEALS FILED BY THE REVENUE STAN D DISMISSED. C.O.NOS.151-153/KOL/2012(A/O ITA NOS.1635-1637/KOL/ 2012)(ASSESSEES APPEAL) ITA.NO.1634-1637/KOL/2012 & CO NO.151-153/KOL/2012 M/S.INDIA TIN BOX & METAL WORKS PVT. LTD. KO LKATA A.YRS.2001-02, 2003-04, 2004-05 & 2006-07 3 4. IN THE CROSS OBJECTIONS THE COMMON ISSUE RAISED IS THAT THE LD. CIT(A) ERRED IN HOLDING THAT THE AO WAS LEGALLY JUSTIFIED IN REOPEN ING THE ASSESSMENT U/S 148 OF THE IT ACT. IN THIS REGARD THE LD. COUNSEL OF THE ASSESSEE FAIRLY CONCEDED THAT SINCE THE REVENUES APPEALS HAVE BEEN DISMISSED ON ACCOUNT OF TAX EFFECT THE CROSS OBJECTIONS FILED BY THE ASSESSEE HAVE BECOME INFRUCTUOUS. ACCO RDINGLY THESE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED AS INFRUCTUOUS. 5. IN THE RESULT THE APPEALS OF THE REVENUE AND THE CROSS OBJECTIONS OF THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE COURT ON 03.07.2014. SD/- SD/- [ MAHAVIR SINGH ] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 03.07.2014. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO: 1. M/S.INDIA TIN BOX & METAL WORKS PVT. LTD., 12, KAPA LITOLLA LANE, KOLKATA- 700012 2 I.T.O., WARD-1(2), KOLKATA 3 . CIT(A)-I, KOLKATA 4. CIT - KOLKATA. 5. CIT-DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES