M/S DALMIA BHARAT LTD, TIRUCHIRAPALLI V. ACIT CIRCLE 1, TRICHY

CO 58/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0953 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 13-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SAIIENDRA MAMIDIP
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SL. NO. ITA NO. ASSESSMENT YEAR APPELLANT RESPONDENT 1 01/CHNY/2016 2010-11 ACIT, NON CORP CIRCLE- (3), CHENNAI M/S.GEM GRANITES, 78 CATHERAL ROAD, GOPALAPURAM,CHENNAI-86. PAN AAAFG 2370 F 2. 849/CHNY/2019 2013-14 ACIT, CORP CIRCLE-(2), COIMBATORE. M/S.ELGI RUBBER CO. LTD., 2000,TRICHY ROAD,COIMBATORE-5. PAN AABCE 9596 M 3 4 5 6 2539 /CHNY/18 2540/CHNY/18 2541/CHNY/18 2542/CHNY/18 2009-10 2010-11 2011-12 2012-13 DCIT(EXEMPTIONS), CHENNAI CIRCLE, CHENNAI-34. M/S.SAE INDIA, 1/117,CEE BROS ARCADE, II FLOOR,III CROSS, KASTURBA NAGAR, ADYAR,CHENNAI-20 . PAN AADTS 3913 K 7 8 9 10 11 3155/CHNY/2017 597/CHNY/2018 1306/CHNY/2018 C.O.56/CHNY/2019 CO 58/CHNY/2019 2013-14 2012-13 2011-12 2012-13 2011-12 ACIT,CIRCLE-I,WILLIAMS ROAD,CANTONMENT, TRICHY-1. M/S.DALMIA BHARAT LTD., DALMIAPURAM, TRICHY 621 651. PAN AAJCS 7366 K / APPELLANT BY : MR. SAIIENDRA MAMIDI,P CIT,D.R /RESPONDENT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.N O. NAME OF COUNSEL 1 MR.PHILIP GEORGE,ADVOCATE 2 MR.PHILIP GEORGE,ADVOCATE 3 TO 6 MR.S.SRIDHAR,ADVOCATE 7 TO 11 MR.NAVIN VERMA, C.A / DATE OF HEARING : 05 - 09 - 2019 / DATE OF PRONOUNCEMENT : 05 - 0 9 - 2019 TAX EFFECT (11) CASES BELOW 50 LAKHS :- 2 -: / O R D E R PER BENCH : THESE ELEVEN APPEALS AND CROSS OBJECTIONS PERTAIN T O THE APPEALS ARE FILED BY VARIOUS ASSESSING OFFICERS, ALL THESE APPEALS CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONERS OF INCOME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS.50,00,000/- IN E ACH OF THESE APPEALS. THE CROSS OBJECTIONS TAKEN UP FOR HEARING ARE ONLY SUCH CROSS OBJECTIONS AS EMANATE FROM THESE APPEALS AND ARE BROADLY IN SU PPORT OF THE ORDERS PASSED BY THE COMMISSIONER (APPEALS). 2. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC .142/2007-ITJ(PT) DATED 8TH AUGUST, 2019, THE INCOME TAX DEPARTMENT H AS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECIS IONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST T HE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OV ERALL TAX EFFECT, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE, IS RS 50,00,000 OR LESS. TAX EFFECT (11) CASES BELOW 50 LAKHS :- 3 -: 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE CONCESSION BY THIS CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRU CTUOUS. 4. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMIT S AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 5. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STA NDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO . 3/2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8THAUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, TH E TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50,00,000 2 BEFORE HIGH COURT 1,00,00,000 3 BEFORE SUPREME COURT 2,00,00,000 TAX EFFECT (11) CASES BELOW 50 LAKHS :- 4 -: 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTE D ISSUES IN THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASS ESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EX CEEDS THE MONETARY LIMIT SPECIFIED 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. F URTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO A PPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPEC IFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEP ARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INT ACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CRO SS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS / CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D. 7. THE HONBLE SUPREME COURT IN THE CASE OF THE C OMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., IN SL P NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)TMI 811(SC) HAS ALSO APPLIED THE TAX EFFECT (11) CASES BELOW 50 LAKHS :- 5 -: CIRCULAR NO.17/2019 DATED 08.08.2019 HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LESS THAN RS.2/- CRORES, GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT, WE SEE NO REASON TO INTERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITIO N IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. 8. LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AN D TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE C OVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CB DT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBER TY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMAR ILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY O THER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGAR D. 9. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING TH E PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF COMMIS SIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE, AND AS ALL THE RELATED CROSS-O BJECTIONS OF THE TAX EFFECT (11) CASES BELOW 50 LAKHS :- 6 -: ASSESSEE ARISE ONLY AS A RESULT OF THOSE APPEALS AN D MERELY SUPPORT THE ORDER OF THE CIT(A), THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. 10. IN THE RESULT, ALL THE APPEALS FILED BY THE RE VENUE ARE DISMISSED AS WITHDRAWN AND THE CROSS-OBJECTIONS ARE DISMISSED AS INFRUCTUOUS. PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 05 TH SEPTEMBER, 2019. SD/- SD/- ( ) ( INTURI RAMA RAO ) + /ACCOUNTANT MEMBER ( . ) (GEORGE MATHAN) / + /JUDICIAL MEMBER /CHENNAI, 0 /DATED: 05 TH SEPTEMBER, 2019. K S SUNDARAM /12 32 /COPY TO: 1. /APPELLANT 4. 4 /CIT 2. /RESPONDENT 5. 2 // /DR 3. 4 ( ) /CIT(A) 6. . /GF