ITO, Ward-4, Karimnagar, Karimnagar V. YA Khwaja Transport, Karimnagar, Karimnagar

ITA 1020/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98812 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 06-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.1020/HYD/2015 : ASSESSMENT YEARS 2008- 09 INCOME TAX OFFICER WARD 4, KARIMNAGAR V/S M/S. Y.A.KHWAJA TRANSPORT RAMAGUNDAM, KARIMNAGAR DIST. (PAN - AAAFY 7703 J ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.KURMI NAIDU DR RESPONDENT BY : NONE DATE OF HEARING 16.12.2015 DATE OF PRONOUNCEMENT 16.12.2015 O R D E R PER D.MANMOHAN, VICE PRESIDENT : THIS APPEAL IS FILED BY THE REVENUE. AT THE OUTS ET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THIS APPEA L OF THE REVENUE IS LESS THAN RS.10 LAKHS. VIDE CIRCULAR NO.21/2015 DAT ED 10 TH DECEMBER, 2015, BEARING F.NO.279/- MISC.142/2007-ITI(PT), THE CBDT, FUNCTIONING UNDER THE MINISTRY OF FINANCE, WITH A V IEW TO REDUCE UNNECESSARY LITIGATION ON THEIR PART, HAS ISSUED A CIRCULAR, WHEREIN THEY HAVE REVISED THE MONETARY LIMITS FOR FILING OF APPE ALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL , HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIBUNAL IS CONC ERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT SPECI FIED THAT WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT SPECI FIED THEREIN, THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR I T NEED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THEREIN IS APPLICABLE TO ALL PENDING APPEALS, THOUGH THEY ARE FILED BY THE REVENUE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFIED THAT THE ASSESSING OFFICER HAS TO CALCULATE THE TAX EFFECT S EPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUE(S) IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, TH E DISPUTED ISSUE ITA NO.1020/HYD/2015 M/S. Y.A.KHWAJA TRANSPORT RAMAGUNDAM, KARIMNAGAR DIST. 2 ARISES IN MORE THAN ONE YEAR(S), APPEAL(S) CAN BE F ILED IN RESPECT OF SUCH ASSESSMENT YEAR(S) IN WHICH TAX EFFECT IN RES PECT OF THE DISPUTED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED, IN OTHE R WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN T HE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME HAS TO BE WITHDRAWN FOR THAT YEAR, FOR WANT OF TAX EFFECT. HOWEVER, AN EXC EPTION IS MADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASS ED BY THE FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF THE YEA RS THE TAX EFFECT IS MORE THAN RS.10 LAKHS AND THE REVENUE DECIDES TO FI LE AN APPEAL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER AL SO, REVENUE IS ELIGIBLE TO FILE APPEAL, EVEN THOUGH THE TAX EFFECT IN EACH OF THOSE YEARS IS LESS THAN RS.10 LAKHS. IT WAS ALSO CLARIFIED TH AT MERELY BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT COME IN THE WAY OF THE DEPARTMENT IN FILING APPEAL FOR OTHER YEARS( S), AND IT DOES NOT MEAN THAT THE DEPARTMENT HAS ACQUIESCED THE ISSUE. 2. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLIC ABLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, INCOME ASSES SED BY THE ASSESSING OFFICER ITSELF IS RS.4,66,720, AND THE RE LIEF GRANTED BY THE FIRST APPELLATE AUTHORITY IS BY WAY OF ALLOWANCE OF DEPRECIATION, INTEREST ON CAPITAL AND REMUNERATION TO WORKING PARTNERS, NO TWITHSTANDING THE FACT THAT THE INCOME OF THE ASSESSEE WAS DETERMINED BY ESTIMATION OF NET PROFIT OF THE ASSESSEE FROM TRANSPORT BUSINESS AT 4% OF THE GROSS BILLS. THUS, AS NOTED ABOVE, THE TAX EFFECT INVOLVE D IN THIS APPEAL OBVIOUSLY IS LESS THAN RS.10 LAKHS. 3. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S. 268A OF THE INCOME TAX ACT,1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX A UTHORITIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 10.12.2015, ISSUED BY THE CBDT IN ITA NO.1020/HYD/2015 M/S. Y.A.KHWAJA TRANSPORT RAMAGUNDAM, KARIMNAGAR DIST. 3 EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTIO N (1) OF S.268A, WE ARE OF THE VIEW THAT THIS APPEAL SHOULD NOT HAVE BE EN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL REPRESENTATIVE AL SO FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CIRCULAR ISSUED B Y THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEAL OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (INTURI RAMA RAO) (D.MANMOHAN) ACCOUNTANT MEMBER. VICE PRESIDENT DT/- 16 TH DECEMBER, 2015 COPY FORWARDED TO: 1. M/S. Y.A.KHWAJA TRANSPORT,Q.NO.B-5/243, PTS, NTP C, JYOTHINAGAR, RAMAGUNDAM, KARIMNAGAR DIST. 2. INCOME TAX OFFICER WAD 4, KARIMNAGAR 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) II, HYDERABAD PR. COMMISSIONER OF INCOME - TAX II, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.