HK INFRAVENTURES PVT.LTD, ALLAHABAD V. DY. COMMISSIONER OF INCOME TAX CIRCLE-1, ALLAHABAD

CO 2/ALLD/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9938 (ITAT-ALLAHABAD)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-07-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 27-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 20

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH , ALLAHABAD ( THROUGH VIRTUAL COURT), BEFORE SHRI. VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR , ACCOUNTANT MEMBER ITA NO.56/ALLD/2019 ASSESSMENT YEAR: 2015 - 1 6 DCIT, CIRCLE - II AAYAKAR BHAWAN, 38, M.G. MARG, CIVIL LINES, ALLAHABAD - 211001 . V. M/S. H. K. INFRAVENTURES PVT. LTD. 17, INDUSTRIAL COLONY, NAINI, ALLAHABAD - 211008. PAN: AACCH6249K CO. NO.02/ALLD/2020 ARISING OUT OF ITA. NO.56/ALLD/2019 ASSESSMENT YEAR: 2015 - 16 M/S. H. K. INFRAVENTURES PVT. LTD. 17, INDUSTRIAL COLONY, NAINI, ALLAHABAD - 211008 V. DCIT, CIRCLE - I ALLAHABAD - 211001 . PAN: AACCH6249K (APPELLANT) (RESPONDENT) REVENUE BY: SHRI A.K.SINGH, SR. DR ASSESSEE BY: SHRI PRAVEEN GODBOLE, CA DATE OF HEARING: 20 . 0 7 .2021 DATE OF PRONOUNCEMENT: 27 . 07 .2021 O R D E R PER SHRI RAMIT KOCHAR , ACCOUNTANT MEMBER: ITA NO.56 /ALLD/20 19 CO. NO.02/ALLD/2020 H. K. I NFRAVENTURES PVT. LTD. ASSESSMENT YEAR: 2015 - 16 2 THIS APPEAL FILED BY REVENUE IN ITA NO. 56/ALLD/2019 FOR ASSESSMENT YEAR 2005 - 06 HAS ARISEN FROM APPELLATE ORDER DATED 20.02.2019 PASSED BY LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) - III, LUCKNOW(HEREINAFTER CALLED THE CIT(A)) IN APPEAL NUMBER 111/ACIT/CC/ALLD/CIT(A) - III/LKO/17 - 18 , WHICH IN TURN HAS ARISE N FROM ASSESSMENT ORDER DATED 19 . 12 .201 7 PASSED BY LEARNED ASSESSING OFFICER U/S 143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED THE ACT), AND THE CROSS - OBJECTION (HEREINAFTER CALLED THE CO) IN CO NO.02/ALLD/2020 IS FILED BY THE ASSESSEE IN SUPPORT OF THE AFORESAID APPELLATE ORDER OF LEARNED CIT(A) . THIS APPEAL FILED BY REVENUE IS DISPOSED OF BECAUSE TAX EFFECT IN THE REVENUE S APPEAL IS LESS THAN RS.50 LACS AS PER CBDT CIRCULAR NO .17/2019 (F.NO. 279/MISC.142/2007 - ITJ (PT)) DATED 08TH AUGUST, 2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, AMENDING PARA NO.3 AND 5 OF THE CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018 AND IT S SUBSEQUENT AMENDMENT DATED 20.08.2018. THE CO FILED BY THE ASSESSEE IS DISMISSED AS IT IS FILED IN SUPPORT OF LD. CIT(A) APPELLATE ORDER, AND SINCE REVENUE APPEAL IS DISMISSED OWING TO LOW TAX EFFECT , THE CO HAS BECOME INFRUCTUOUS AND IS LIABLE TO BE DI SMISSED . THIS APPEAL AS WELL CO WERE HEARD THROUGH VIDEO CONFERENCING MODE THROUGH VIRTUAL COURT. 2. THE ASSESSEE S COUNSEL HAS AT THE OUTSET SUBMITTED BEFORE THE BENCH THAT APPEAL FILED BY REVENUE IS NOT MAINTAINABLE OWING TO LOW TAX EFFECT AND IS COVERED BY AFORESAID CBDT CIRCULAR. IT IS ALSO STATED BY LD. COUNSEL FOR THE ASSESSEE BEFORE THE BENCH THAT THE SAID APPEAL FILED BY REVENUE IS ALSO NOT COVERED BY ANY OF THE E XCEPTIONS AS STATED BY ITA NO.56 /ALLD/20 19 CO. NO.02/ALLD/2020 H. K. I NFRAVENTURES PVT. LTD. ASSESSMENT YEAR: 2015 - 16 3 REVENUE IN AFORESAID CIRCULAR AS WELL FURTHER CLARIFICATIONS ETC. ISSUED BY REVENUE FROM TIME TO TIME WHILE DEALING WITH LOW TAX EFFECT APPEALS FILED BY REVENUE . THUS LD. COUNSEL FOR THE ASSESSEE STATED BEFORE THE BENCH THAT TAX EF FECT IN THIS APPEAL FILED BY REVENUE IS LESS THAN RS. 50 LACS AND THE APPEAL IS COVERED BY AFORE - STATED CIRCULAR ISSUED BY CBDT AND HENCE THE SAME IS LIABLE TO BE DISMISSED OWING TO LOW TAX EFFECT. THE LD. COUNSEL FOR THE ASSESSEE ALSO STATED BEFORE THE BE NCH THAT CO WAS FILED BY ASSESSEE IN SUPPORT OF LD. CIT(A) AND THAT SINCE NOW REVENUE APPEAL IS NOT MAINTAINABLE OWING TO LOW TAX EFFECT , THE CO HAS BECOME INFRUCTUOUS AND THE SAME IS ALSO LIABLE TO BE DISMISSED . THE LD. DR SUBMITTED BEFORE THE BENCH THAT TAX EFFECT INVOLVED IN THIS APPEALS FILED BY REVENUE IS ADMITTEDLY LESS THAN RS.50 LACS BEING RS. 20,21,324/ - AND THE APPEALS IS COVERED BY CBDT CIRCULAR NO.17/2019 DATED 08.08.2019 BEING A LOW TAX EFFECT APPEALS FILED BY REVENUE AND THE SAME IS LIABLE TO BE DISMISSED . 3. THE TAX EFFECT IN THIS APPEAL FILED BY REVENUE IS UNDISPUTEDLY BELOW RS.50 LACS AND THUS KEEPING IN VIEW CBDT CIRCULAR NO.17/2019 (F.NO.279/MISC.142/2007 - ITJ (PT)) DATED 08 TH AUGUST, 2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, AMENDING PARA NO.3 AND 5 OF THE CBDT CIRCULAR NO.3 OF 2018 DATED 11.07.2018 AND ITS SUBSEQUENT AMENDMENT DATED 20.08.2018, WE ARE DIS MISS ING THIS APPEAL FILED BY REVENUE DUE TO LOW TAX EFFECT INVOLVED IN THIS APPEAL WHICH IS BELOW RS.50 LACS. WHILE DISPOSING OF THIS APPEAL FILED BY REVENUE DUE TO LOW TAX EFFECT VIDE AFORESAID CBDT CIRCULAR NO.17/2019 DATED 08.08.2019, WE CLARIFY THAT WE HAVE NOT COMMENTED ON MERITS OF THE ISSUE(S) IN THIS ITA NO.56 /ALLD/20 19 CO. NO.02/ALLD/2020 H. K. I NFRAVENTURES PVT. LTD. ASSESSMENT YEAR: 2015 - 16 4 APPEAL. HOWEVER, AT THE SAME TIME WE ARE GRANTING LIBERTY TO REVENUE THAT IF AT ANY STAGE REVENUE WANTS TO AGITATE THE MATTER/ISSUE(S) IN THIS APPEAL IN ACCORDANCE WITH THE CLAUSES/EXCEPTIONS AS ARE CON TAINED IN THE AFORE - STATED CBDT CIRCULAR NUMBER 17/2019 DATED 08.08.2019 READ WITH CBDT CIRCULAR NO 3/2018 DATED 11.07.2018 AS MODIFIED ON 20.08.2018, THE REVENUE IS HEREBY GRANTED LIBERTY TO FILE MISCELLANEOUS APPLICATION PRAYING FOR RECALL OF THIS ORDER ACCORDINGLY. SINCE, AS STATED BY LD. COUNSEL FOR THE ASSESSEE THAT CO IS FILED MERELY IN SUPPORT OF LD. CIT(A) APPELLATE ORDER AND NOW SINCE REVENUE APPEAL ITSELF IS NOT MAINTAINABLE, THE CO HAS BECOME INFRUCTUOUS AND IS LIABLE TO BE DISMISSED, WE ACCORDIN GLY DISMISS CO FILED BY ASSESSEE. THUS, BOTH THE REVENUES APPEAL AS WELL CO FILED BY ASSESSEE STAND DISMISSED. WE ORDER ACCORDINGLY. 3 . IN RESULT, THE APPEAL FILED BY REVENUE IN ITA NO. 56 /ALLD /20 19 FOR AY: 2015 - 1 6 STAND DISMISSED AND ALSO CO. NO. 02/ALLD/2020 FILED BY ASSESSEE FOR AY: 2015 - 16 STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 /0 7 /2021 THROUGH VIDEO CONFERENCING. SD / - / - SD / - / - [ VIJAY PAL RAO ] [ RAMIT KOCHAR ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27 /0 7 /2021 ALLAHABAD VIJAY PAL SINGH (SR. PS) COPY FORWARDED TO: 1. APPELLANT ITA NO.56 /ALLD/20 19 CO. NO.02/ALLD/2020 H. K. I NFRAVENTURES PVT. LTD. ASSESSMENT YEAR: 2015 - 16 5 2. RESPONDENT 3. CIT(A) - 4. CIT 5. DR //TRUE COPY// BY ORDER ASSISTANT REGISTRAR