Orissa State Handloom Weavers Cooperative Society Ltd., Bhubaneswar V. ITO, Ward-1(2), Bhubaneswar

CO 4/CTK/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7863 (ITAT-CUTTACK)
• Duration Of Justice: 3 year(s) 2 month(s) 24 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 26-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-01-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 02-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S M KESHAKAMAT
• Assessee Lawyers: B K MAHAPATRA
• Keywords: Audit objection; Tax effect
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH , CUTTACK , . . , BEFORE SHRI CHANDRA MOHAN GARG, J M AND SHRI L .P. SAHU, A M ./ ITA NO. 120 /CTK /20 1 6 ( / ASSESSMENT YEAR :201 1 - 201 2 ) JCIT (OSD), CIRCLE - 4(1), BHUBANESWAR. VS. M/S ORISSA STATE HANDLOOM WEAVERS COOPERATIVE SOCIETY LTD., JAWAHARLAL NEHRU MARG, BHUBANESWAR - 751001 ./ PAN NO. : A A A A O 0474 F ( / APPELLANT ) .. ( / RESPONDENT ) AND ./ CROSS OBJECTION NO. 04 /CTK /20 16 ( / ASSESSMENT YEAR :2011 - 2012 ) M/S ORISSA STATE HANDLOOM WEAVERS COOPERATIVE SOCIETY LTD., JAWAHARLAL NEHRU MARG, BHUBANESWAR - 751001 V S. ITO - WARD - 1(2), BHUBANESWAR ./ PAN NO. : A AAAO 0474 F ( / APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : SHRI S.M.KESHAKAMAT , CIT DR /ASSESSEE BY : SHRI B.K.MAHAPATRA , ADVOCATE / DATE OF HEARING : 23 /07/2019 / DATE OF PRONOUNCEMENT : 24 /07/2019 / O R D E R PER L.P.SAHU, A M : TH E REVENUE HAS FILED APPEAL AGAINST THE ORDER PASSED BY LEARNED CIT(A) - 3 , BHUBANESWAR FOR THE ASSESSMENT YEAR 2011 - 2012, W HEREAS THE ASSESSEE HAS FILED CROSS OBJECTION SUPPORTING THE ORDER OF THE CIT(A) . ITA NO .12 0 /CTK/201 6 & CO NO.04/CTK/2016 2 2. HEARD BOTH THE PARTIES AND PERUSED THE RECORD. 3. DURING THE COURSE OF HEARING, THE LD. DR SUBMITTED THAT THERE IS NO DOUBT THAT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.20 LAKHS, THUS, BOUND BY THE DEPARTMENTAL INSTRUCTION, THE APPEAL HAS TO BE WITHDRAWN. HOWEVER, ATTENTION WAS INVITED TO PARA 10 OF THE CIRCULAR NO. 3/2018, DATED 11 TH JULY, 2018, WHICH HAS BEEN MODIFIED BY CIRCULAR DATED 20TH AUGUST, 2018 AND IN TERMS OF THE SAID MODIFICATION THE DEPARTMENTAL REPRESENTATIVES MADE A PRAYER THAT PERMISSION TO PRAY FOR RECALL OF THE ORDER MAY BE GRANTED IN CASE ANY OF THE CONDITIONS IN THE REPORTS MADE AVAILABLE BY THE A.O. SUBSEQUENTLY, SHOW THAT THE ISSUES WERE REQ UIRED TO BE CONTESTED. THE MODIFIED PARA IS EXTRACTED HEREUNDER: 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARD'S ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVEN UE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE ADDITION RELATES TO UNDISCLOSED FOREIGN INCOME/UNDISCLOSED FOREIGN ASSETS (INCLUDING FINANCIAL ASSETS)/ UNDISCLOSED FOREIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INF ORMATION RECEIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI/ED/DRI/SFIO/ DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). (F) CASES WHERE PROSECUTION HAS BEEN FILED BY THE DEPARTMENT AND IS PENDING IN THE COURT. ITA NO .12 0 /CTK/201 6 & CO NO.04/CTK/2016 3 4. GOI NG BY THE PRESCRIPTION OF CIRCULAR NO. 3/2018, DATED 11TH JULY, 2018, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE EITHER NOT FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL OR WITHDRAWN THE SAME AS THE TAX EFFECT IN THE APPEAL IS ADMITTEDLY LESS THAN THE PRESCRIBED LIMIT, I.E., RS. 20,00,000/ - FOR NOT FILING THE APPEALS. ACCORDINGLY, WE DISMISS THE APPEAL FILED BY THE REVENUE WITHOUT GOING INTO MERITS OF THE CASE. HOWEVER, IT IS MADE CLEAR THAT THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION , IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMIT OF RS.20,00,000/ - OR ANY OF THE CONDITIONS ETC., AS AVAILABLE IN THE AMENDMENT CARRIED OUT IN PARA 10 OF CIRCULAR NO. 3/2018, DATED 20.08.2018, IS MADE OUT. ACCORDINGLY, THE APPEAL OF THE RE VENUE DESERVES TO BE DISMISSED. 5. SINCE, WE HAVE DISMISSED THE APPEAL OF REVENUE HOLDING THAT THE APPEAL OF THE REVENUE IS BELOW TAX LIMIT, THEREFORE, THE CROSS OBJECTION FILED BY THE ASSESSEE SUPPORTING THE ORDER OF CIT(A), HAS BECOME INFRUCTUOUS AND THE SAME IS DISMISSED. 6 . IN THE RESULT, THE APPEAL OF THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON 24 /0 7 / 201 9 . SD/ - ( C.M.GARG ) SD/ - ( L.P.SAHU ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 24 / 0 7 /201 9 . . / PKM , S R.P.S. ITA NO .12 0 /CTK/201 6 & CO NO.04/CTK/2016 4 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - . 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//