ITO, Bangalore V. Smt. Sharadamma, Bangalore

ITA 1034/BANG/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8749 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 03-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

ITA.1034 & 1103/BANG/2015 CO.203 & 204/BANG/2015 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI. VIJAYPAL RAO, JUDICIAL MEMBER I.T.A NOS.1034 & 1103/BANG/2015 (ASSESSMENT YEARS : 2003-04 & 2004-05) INCOME TAX OFFICER, WARD -4(3)(4), BANGALORE .. APPELLANT V. SMT. SHARADAMMA, NO.10, MARUTHI NILAYA, ROOPENA AGRAHARA, MADIWALA, BANGALORE 560 068 .. RESPONDENT PAN : AGHPS4698H CROSS OBJECTION NOS.203 & 204/BANG/2015 (I.T.A NOS.1034 & 1103/BANG/2015) (ASSESSMENT YEARS : 2003-04 & 2004-05) (BY THE ASSESSEE) ASSESSEE BY : NONE REVENUE BY : SHRI. L. V. BHASKAR REDDY, JCIT HEARD ON : 06.01.2016 PRONOUNCED ON : 06.01.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THESE ARE APPEALS AND CROSS OBJECTIONS FILED BY THE REVENUE AND ASSESSEE RESPECTIVELY, AGAINST THE COMMON ORDER DAT ED 20.04.2015 OF CIT (A)-4, BANGALORE, FOR THE A. YS. 2003-04 & 2004-05 ITA.1034 & 1103/BANG/2015 CO.203 & 204/BANG/2015 PAGE - 2 02. WHEN THE APPEALS AND COS WERE TAKEN UP FOR HEAR ING, THE BENCH POINTED OUT TO THE PARTIES THAT TAX EFFECT INVOLVED IN THIS APPEAL WAS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEAR, THEREFORE BY VIRTUE OF CIRCULAR NO.21/2015, DT.10.12.2015, IS BELOW THE LI MIT LAID DOWN FOR FILING APPEALS BEFORE THIS TRIBUNAL. 03. LD. DR SUBMITTED THAT PARA 8 OF THE CIRCULAR WA S NOT APPLICABLE IN THIS CASE. THEREFORE HE DID NOT OBJECT TO THE APPL ICATION OF THE CIRCULAR. 04. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTEN TIONS. PARA 4 OF THE CIRCULAR NO.21/2015 (SUPRA) IS REPRODUCED HEREUNDER : 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFER ENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BE EN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AG AINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRE D TO AS DISPUTED ISSUES). HOWEVER THE TAX WILL NOT INCLU DE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST IT SELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EF FECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOM E, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDIT IONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAI NST. ITA.1034 & 1103/BANG/2015 CO.203 & 204/BANG/2015 PAGE - 3 05. THE TAX EFFECT ON THE ISSUES THAT ARE DISPUTED BY THE REVENUE IS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEARS. ASSESSEE HAD NOT CHALLENGED THE CONSTITUTIONAL VALIDITY OF ANY PROVI SIONS OF THE ACT NOR HAD IT CHALLENGED THE LEGALITY OF THE CIRCULAR. REVENUE H AS NOT BROUGHT TO OUR NOTICE ANYTHING TO SHOW THAT THE APPEALS AROSE ON A N ISSUE EMANATING FROM ANY REVENUE AUDIT OBJECTIONS ACCEPTED BY THE DEPART MENT. ADDITION GIVING RISE TO THE APPEAL DOES NOT RELATE TO ANY UN DISCLOSED FOREIGN ASSETS / BANK ACCOUNTS. THUS WE FIND THAT CIRCULAR NO.21/ 2 015 (SUPRA) IS SQUARELY APPLICABLE IN THIS CASE. HOWEVER IF REVENUE FIND T HAT APPEAL ARISE OUT OF ISSUES EMANATING FROM AUDIT OBJECTION IT WILL BE FR EE TO FILE MP FOR RECALLING THIS ORDER. IF THE APPEALS GETS REVIVED THEN NEEDL ESS TO SAY THE COS SHALL ALSO BE REVIVED. 06. WITH THE ABOVE OBSERVATIONS APPEALS OF THE REVE NUE AND CROSS OBJECTIONS BY THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 6TH DAY OF J ANUARY, 2016. SD/- SD/- (VIJAYPAL RAO) (ABRAH AM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER MCN ITA.1034 & 1103/BANG/2015 CO.203 & 204/BANG/2015 PAGE - 4 COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR ITA.1034 & 1103/BANG/2015 CO.203 & 204/BANG/2015 PAGE - 5