DCIT,circle-1(1), Bhubaneswar V. M/s. ARSS Infrastucture ProjectsLimited, Bhubaneswar

ITA 10/CTK/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 7420 (ITAT-CUTTACK)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 17-03-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRIMANOJ KUMAR GOUTAM
• Assessee Lawyers: RASHMI RANJAN SINGH
• Keywords: Tax effect

Judgement Text

BEFORE DCIT, Circle -1(1), Bhubaneswar. PAN/GIR No. (Appellant Per C.M.Garg, JM This is Bhubaneswar dated 13.12.2019 2. The appeal is time barred by 346 days. The revenue has filed condonaton petition to condone the delay in filing the appeal before the Tribunal, stating that the limitation to file appeal before the Tri nationwide lockdown for COVID worked with limited workforce. It is stated that due to introduction of Vivad Se Viswas Scheme, the officers/officials were engaged i scheme. It was in this backdrop that the appeal was not filed within the stipulated time period and, therefore, it is requested to condone the delay and admit the appeal for adjudication. Ld A.R. had no serious objection in condon IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI CHANDRA MOHAN GARG, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.10/CTK/2021 Assessment Year : 2012-13 1(1), Vs. M/s. ARSS Infrastructure Projects Ltd., Plot No.38, Sector Mancheswar Industrial Estate, Bhubaneswar. No.AADCA 4203 D (Appellant) .. ( Respondent Assessee by : Shri Rashmi Ranjan Singh Revenue by : ShriManoj Kumar Goutam Date of Hearing : 7/3/ 20 Date of Pronouncement : 8/3/20 O R D E R , JM an appeal filed by the revenue against the order of the CIT(A),1, dated 13.12.2019 for the assessment year 2012 The appeal is time barred by 346 days. The revenue has filed condonaton petition to condone the delay in filing the appeal before the Tribunal, stating that the limitation to file appeal before the Tribunal has expired due to the fact that the lockdown for COVID-19 pandemic, the offices were closed and further worked with limited workforce. It is stated that due to introduction of Vivad Se Viswas Scheme, the officers/officials were engaged in implementation of the scheme. It was in this backdrop that the appeal was not filed within the stipulated time period and, therefore, it is requested to condone the delay and admit the appeal for adjudication. Ld A.R. had no serious objection in condon Page1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER M/s. ARSS Infrastructure Projects Ltd., Plot No.38, Sector-A, Zone-D, Mancheswar Industrial Estate, Bhubaneswar. Respondent) Ranjan Singh, AR Manoj Kumar Goutam CIT (DR) / 2022 /2022 against the order of the CIT(A),1, 2012-13. The appeal is time barred by 346 days. The revenue has filed condonaton petition to condone the delay in filing the appeal before the Tribunal, stating that bunal has expired due to the fact that the 19 pandemic, the offices were closed and further worked with limited workforce. It is stated that due to introduction of Vivad Se n implementation of the scheme. It was in this backdrop that the appeal was not filed within the stipulated time period and, therefore, it is requested to condone the delay and admit the appeal for adjudication. Ld A.R. had no serious objection in condoning the delay. ITA No.10/CTK/2021 Assessment Year : 2012-13 Page2 | 4 3. After going through the condonation petition, and considering the submissions of both the parties, it appears that the delay in filing the appeal occurred due to COVID-19 Lockdown and all the Government Offices were closed at the relevant time therefore the delay of 346 days in filing the appeal by the revenue is condoned and the appeal is admitted for adjudication. 4. The revenue is aggrieved by the order of the ld CIT(A) in giving relief of Rs.11,44,366/- by restricting the disallowance in respect of interest payment on mobilisation advance to Rs.34,40,315/-. 5. At the outset, ld A.R. of the assessee submitted that the revenue has come in appeal against the relief of Rs.11,44,336/- given by the ld CIT(A), which is below the monetary limit as per the Circular No.17/2019 issued by CBDT dated 8 th August, 2019, i.e. Rs.50,00,000/-, therefore, the appeal is not maintainable and should be dismissed. 6. We find that CBDT vide circular No.17/2019 in F.No.279/Misc.142/2007- ITJ(Pt) dated 8th August, 2019, has further liberalized its policy for not filing appeals against the decisions 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 the appellate orders favourable to the assessee in the cases in which overall tax effect, excluding interest except when interest itself is in dispute, is Rs 50,00,000/- or less. ITA No.10/CTK/2021 Assessment Year : 2012-13 Page3 | 4 7. This circular, only enhances the monetary limits 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. 8. The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular No. 3/2018 (subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular. 9. The Hon'ble Supreme Court in the case of The Commissioner of Income Tax-5,New Delhi Vs. Keshav Power Ltd., in SLP No.21497/2019 dated 16.08.2019 reported in 2019(8)TMI 811(SC) has also applied the Circular No.17/2019 dated 08.08.2019 and 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 Petition is dismissed, leaving all the questions of law open". 10. Learned CIT D.R. submits that liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeal and restoration of the appeal in the case: (i) in which it can be demonstrated that the appeals are covered by the exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs 50,00,000. 11. We accept the request of ld CIT D.R. We make it clear that the appellant shall be at liberty to point out the case which is wrongly included in the appeal so summarily dismissed, either owing to wrong computation of tax effect or owning ITA No.10/CTK/2021 Assessment Year : 2012-13 Page4 | 4 to such cases being covered by the permissible exceptions or for any other reason, and we will take appropriate remedial steps in this regard. 12. In the circumstances, respectfully following the principles laid down by the Hon"ble Supreme Court in the case of the Commissioner of Income Tax-5, New Delhi Vs. Keshav Power Ltd. (supra) and in the light of the above discussions, the appeal filed by the Revenue is found to be non-maintainable and hence, dismissed. 13. In the result, appeal of the revenue is dismissed. Order pronounced on 8 /3/2022. Sd/- sd/- (Arun Khodpia) (Chandra Mohan Garg) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 8/03/2022 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : DCIT, Circle -1(1), Bhubaneswar. 2. The Respondent. /s. ARSS Infrastructure Projects Ltd., Plot No.38, Sector-A, Zone-D, Mancheswar Industrial Estate, Bhubaneswar 3. The CIT(A)-1, Bhubaneswar 4. Pr.CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//