ACIT, Central Circle-2, Hyderabad V. Shri P. Madhusudan Reddy, Hyderabad

ITA 1072/HYD/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6486 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 03-11-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 11-07-2012
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI J. SUDHAKARA REDDY, ACCOUNTANT MEMBER I.T.A. NO. 1072/HYD/2012 ASSESSMENT YEAR : 2005-06 THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, HYDERABAD VS SRI P. MADHUSUDAN REDDY, HYDERABAD [PAN: AEWPP0306E] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI M. SITARAM, DR FOR ASSESSEE : SHRI KUMAR PAL, AR DATE OF HEARING : 15-06-2016 DATE OF PRONOUNCEMENT : 15-06-2016 O R D E R THIS APPEAL IS FILED BY THE REVENUE. AT THE OUTSET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS B ELOW RS.10 LAKHS. VIDE CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, BEARING F.NO.279/- MISC.142/2007-ITI(PT), THE CBDT, F UNCTIONING UNDER THE MINISTRY OF FINANCE, WITH A VIEW TO REDUCE U NNECESSARY LITIGATION ON THEIR PART, HAS ISSUED A CIRCULAR, WHER EIN THEY HAVE REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY TH E DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HIGH COURT S AND SUPREME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED , THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT SPECIFI ED THAT WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT SPECIFIE D THEREIN, THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR IT NEED NOT I.T.A. NO. 1072/HYD/2012 SHRI P. MADHUSUDAN REDDY :- 2 -: PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFF ECT INDICATED THEREIN IS APPLICABLE TO ALL PENDING APPEALS, THOUGH T HEY ARE FILED BY THE REVENUE PRIOR TO THE ISSUANCE OF THE SAID CIRCU LAR. IT WAS ALSO CLARIFIED THAT THE ASSESSING OFFICER HAS TO CALCUL ATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPEC T OF THE DISPUTED ISSUE(S) IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUE ARISES IN MORE THAN ONE Y EAR(S), APPEAL(S) CAN BE FILED IN RESPECT OF SUCH ASSESSMEN T YEAR(S) IN WHICH TAX EFFECT IN RESPECT OF THE DISPUTED ISSUE EXCEED S THE MONETARY LIMIT SPECIFIED, IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN THE SPECIFIED LIM IT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME HAS TO BE WITHDRAW N FOR THAT YEAR, FOR WANT OF TAX EFFECT. HOWEVER, AN EXCEPTION IS MADE 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 APPEAL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER A LSO, REVENUE IS ELIGIBLE TO FILE APPEAL, EVEN THOUGH THE TAX EFFECT IN E ACH OF THOSE YEARS IS LESS THAN RS.10 LAKHS. IT WAS ALSO CLARIFIE D THAT MERELY BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT COME IN THE WAY OF THE DEPARTMENT IN FILING APPEAL FO R OTHER YEAR(S), AND IT DOES NOT MEAN THAT THE DEPARTMENT HAS ACQU IESCED THE ISSUE. 2. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLICA BLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, TAX EFFECT ON AC COUNT OF THE RELIEF GRANTED BY THE CIT(A) WHICH LED TO THE FILING OF THE PRESENT APPEAL BY THE REVENUE, IS ADMITTEDLY, LESS THAN RS.10 LAKHS. I.T.A. NO. 1072/HYD/2012 SHRI P. MADHUSUDAN REDDY :- 3 -: 3. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S.268 A OF THE INCOME TAX ACT, 1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX AUTHORITI ES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FI LING 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 SUBSECTION (1) OF S.268A, I AM OF THE VIEW THAT THE APPEAL FILED HEREI N SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTM ENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CIRCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE CIR CUMSTANCES OF THE CASE, I DISMISS THE APPEAL OF THE REVENUE AS W ITHDRAWN/NOT PRESSED, AS PRONOUNCED IN THE OPEN COURT. SD/- (J. SUDHAKARA REDDY) ACCOUNTANT ME MBER HYDERABAD, DATED 15-06-2016 TNMM COPY TO : 1. THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRC LE-2, HYDERABAD. 2. SHRI P. MADHUSUDAN REDDY, D.NO. 18-108, ROAD NO. 5, KAMALA NAGAR, HYDERABAD. 3. CIT(APPEALS), GUNTUR. 4. CIT(CENTRAL), HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.