INCOME TAX OFFICER 1(2) , RAIPUR V. GRAMIN SEWA SAHAKARI SAMITI MARYADIT BHANSOJ, RAIPUR

ITA 318/RPR/2024

AI Insights

The case involves multiple appeals filed by the Income Tax Department against various cooperative societies in Raipur and Dhamtari, concerning different assessment years. The appeals were directed against the orders passed by the National Faceless Appeal Centre (NFAC)/ADDL/JCIT(A), which themselves arose from orders under section 143(3) of the Income-tax Act, 1961. The central issue in these appeals was the monetary limit for filing appeals set by the CBDT, which had been recently raised to Rs.60,00,000. The Department acknowledged that the tax effect in these cases was below this limit and sought the court's permission to withdraw or not press the appeals, with an option to revisit if exceptions to the monetary limit could be demonstrated.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469768 (ITAT-RAIPUR)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Next Hearing Date: 09-10-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 11-07-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Keywords: Tax effect
• Section: 143(3); 13

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी रवीश सूद, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER Sl. No. ITA No. Name of Appellant Name of Respondent Asst. Year 1. 318/RPR/2024 The Income Tax Officer-1(2), Raipur Gramin Sewa Sahakari Samiti Maryadit Bhansoj, Bhansoj, Tehsil : Arang, Raipur (C.G.)-492 001 PAN : AAAAG9698M 2014-15 2. 321/RPR/2024 The Income Tax Officer, Raipur Gramin Sewa Sahakari Samiti Maryadit Deori Vill + Post : Deori, Tehsil:Tilda, Raipur (C.G.)-493 114 PAN : AAAAG9743K 2017-18 3. 322/RPR/2024 The Income Tax Officer, Dhamtari Gramin Sewa Sahakari Samiti Maryadit Demar Demar, Dist. Dhamtari, Chattisgarh-493 773 PAN : AAAAG9785B 2015-16 4. 325/RPR/2024 The Income Tax Officer, Dhamtari Gramin Sewa Sahakari Samiti Maryadit Belargaon Dist. Dhamtari (C.G)- 493 773 PAN : AABAA7998M 2016-17 2 ITA Nos. 318/RPR/2024 & 4 others 5. 328/RPR/2024 The Income Tax Officer, Bhilai Sewa Sahakari Samiti Khairjhity, Jila Sahakari Kendriya Bank Maryadit, G E Road, Durg (C.G.)-491 001 PAN : AAHAS1566P 2015-16 Assessee by : None (written submission for Sl. No. 1 & 2) : None (for Sr. No.3 to 5) Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 09.10.2024 घोषणा कȧ तारȣख / Date of Pronouncement : 09.10.2024 आदेश / ORDER PER RAVISH SOOD, JM: The captioned appeals filed by the revenue are directed against the respective orders passed by National Faceless Appeal Centre (NFAC)/ADDL/JCIT(A) in the cases of the aforementioned assessee societies, which in turn arises from the respective orders passed by the A.O. u/s 143(3) of the Income-tax Act, 1961 (for short ‘Act’) for A.Ys. 2014- 15, 2017-18, 2015-16, 2016-17. 2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the 3 ITA Nos. 318/RPR/2024 & 4 others Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as a measure for reducing litigation. 3. CBDT vide Circular No. 3/2018 dated 11.07.2018 had specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.” 4 ITA Nos. 318/RPR/2024 & 4 others 4. As a step towards further management of litigation, CBDT vide Circular No.17/2019 had fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-. 5. Thereafter, the CBDT vide Circular No.09/2024, dated 17.09.2024 had further enhanced the monetary limit for filing of appeals before the ITAT to Rs.60,00,000/-. As per Para 5 of the Circular No.09/2024 (supra) the modifications therein provided shall be effective from the date of issue of the circular, i.e. 17.09.2024. 6. In the captioned appeals filed by the Department, the tax effect involved is below the monetary limit of Rs.60,00,000/- which was confronted to the Ld. Departmental Representative (DR). 7. Before me the Ld. DR submits that liberty may kindly be given to raise, after necessary further verification, and to seek recall of the dismissal of appeal and restoration of the appeal in case it can be shown that the appeal is covered by the exceptions. 8. I agree with the above contentions of the Ld. DR and make it clear that the appellant shall be at liberty to point out the exceptions and appropriate remedial measures in this regard will be taken. 5 ITA Nos. 318/RPR/2024 & 4 others 9. With the above observations, the appeal involving tax effect of less than Rs.60,00,000/- is dismissed. 10. In the result, all the appeals of the revenue are dismissed in terms of the aforesaid observations. Order pronounced in open court on 09th day of October, 2024. Sd/- (रवीश सूद /RAVISH SOOD) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर/ RAIPUR ; Ǒदनांक / Dated : 09th October, 2024. आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The CIT(Appeals)-1, Raipur (C.G) 4. The Pr. CIT-1, Raipur (C.G) 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण,रायपुर बɅच, रायपुर / DR, ITAT, Raipur Bench, Raipur. 6. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur. "