Appeal details
Counselvise Citation
[2015] 121 COUNSELVISE.COM (IT) 1882 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 1 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
15-12-2015
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
B
Next Hearing Date
03-12-2015
Assessment Year
2006-2007
Appeal Filed On
13-08-2015
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.1059/HYD/2015 : ASSESSMENT YEARS 2006- 07 ASST. COMMISSIONER OF INCOME - TAX CIRCLE 16(2), HYDERABAD V/S M/S. P.K.L. LTD., HYDERABAD (PAN - AABCP 6265 A ) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. MYTHLI RANI DR RESPONDENT BY : SHRI BHUPESH KUMAR DAND DATE OF HEARING 17.12.2015 DATE OF PRONOUNCEMENT 17.12.2015 O R D E R PER D.MANMOHAN, VICE PRESIDENT : THIS APPEAL IS FILED BY THE REVENUE. AT THE OU TSET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THIS APPEA L IS BELOW RS.10 LAKHS. VIDE CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, BEARING F.NO.279/- MISC.142/2007-ITI(PT), THE CBDT, FUNCTIO NING UNDER THE MINISTRY OF FINANCE, WITH A VIEW TO REDUCE UNNECES SARY LITIGATION ON THEIR PART, HAS ISSUED A CIRCULAR, WHEREIN THEY HAV E REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPART MENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SUPR EME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT SPECIFIED THAT WHERE THE TAX EFFE CT DOES NOT EXCEED THE MONETARY LIMIT SPECIFIED THEREIN, THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR IT 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 REVEN UE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFI ED THAT THE ASSESSING OFFICER HAS TO CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUE(S) IN THE CAS E OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUE ARISES IN MORE THAN ITA NO.1059/HYD/2015 M/S. P.K.L. LTD., HYDERABAD 2 ONE YEAR(S), APPEAL(S) CAN BE FILED IN RESPECT OF S UCH ASSESSMENT YEAR(S) IN WHICH TAX EFFECT IN RESPECT OF THE DISPU TED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED, IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN THE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME HAS TO BE WITHDR AWN FOR THAT YEAR, FOR WANT OF TAX EFFECT. HOWEVER, AN EXCEPTION IS M ADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASSED BY THE FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF THE YEARS THE TAX EFFECT IS MORE THAN RS.10 LAKHS AND THE REVENUE DECIDES TO FILE AN APPE AL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER ALSO, 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 THAT MERELY BEC AUSE 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, THE ADDITION IN DISPUTE, WHICH WAS DELETED BY THE CIT(A) BY THE IMPUGNED ORDER, IS ONLY RS.4,78,554. THUS, THE TAX EFFECT INVOLVED IN THIS APPEAL OBVIOU SLY 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 EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTIO N (1) OF S.268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL RE PRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APP EAL IS LESS THAN THE ITA NO.1059/HYD/2015 M/S. P.K.L. LTD., HYDERABAD 3 LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CIRCULAR IS SUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEAL OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUN CED IN THE OPEN COURT. SD/- SD/- (INTURI RAMA RAO) (D.MANMOHAN) ACCOUNTANT MEMBER. VICE PRESIDENT DT/- 17 TH DECEMBER, 2015 COPY FORWARDED TO: 1. M/S. P.K.L. LTD., 8-3-1087, PLOT NO.48, SRINAGAR COLONY, HYDERABAD 2. ASST. COMMISSIONER OF INCOME - TAX CIRCLE 16(2), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) IV, HYDERABAD PR. COMMISSIONER OF INCOME-TAX 4, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.
