Deputy Commissioner of Income-tax, Pune V. Indo Global Buildcon Private Limited, Pune

ITA 1120/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8669 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 05-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.1120/PUN/2017 / ASSESSMENT YEAR : 2012-13 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 11, PUNE. . / APPELLANT V/S INDO GLOBAL BUILDCON PRIVATE LIMITED, OFFICE NO.401/402, GREAT EASTERN PLAZA, YERAWADA, PUNE 411 006. PAN : AACCI1008H. . / RESPONDENT ASSESSEE BY : SHRI KISHORE PHADKE. REVENUE BY : SHRI K.K. OJHA. PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (A) PUNE 1 DATED 10.02 .2017 FOR A.Y. 2012-13. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS A COMPANY, WHO ELECTRONICALLY FILED ITS RETUR N OF INCOME FOR A.Y. 2012-13 ON 25.09.2012 DECLARING TOTAL INCOM E OF RS.74,69,004/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND THEREAFTER ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER / DATE OF HEARING : 11.07.2019 / DATE OF PRONOUNCEMENT: 12.07.2019 2 DATED 27.03.2015 AND THE TOTAL INCOME WAS ASSESSED AT RS.1,25,51,160/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE C ARRIED THE MATTER BEFORE LD.CIT(A) WHO VIDE ORDER DT.10.02.2017 (IN APP EAL NO.CIT(A), PUNE-1/1027/2015-16) GRANTED PARTIAL RELIEF TO T HE ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), REVENUE IS NOW IN APPEAL BEFORE US AND HAS R AISED THE FOLLOWING GROUNDS : 1. THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO LAW AND ON FACTS AND IN CIRCUMSTANCES O F THE CASE. 2. THE LD. . CIT(A) ERRED ON THE FACTS AND CIRCUMST ANCES OF THE CASE IN DIRECTING TO TREAT THE RENTAL INCOME UNDER THE HEAD 'HOUSE PROPERTY INCOME' EVEN THOUGH THE ASSESSEE COMPANY WAS ENGAGE D IN THE BUSINESS OF LEASING AND DEVELOPMENT OF IMMOVABLE PR OPERTIES AND THE SAID PROPERTY WAS LET OUT WITH THE INTENTION TO EAR N COMMERCIAL GAINS 3. FOR THESE AND SUCH OTHER GROUNDS AS MAY BE URGED AT THE TIME OF HEARING, THE ORDER OF THE LD. COMMISSIONER OF INCOM E TAX (APPEALS) MAY BE VACATED I AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. BEFORE US, AT THE OUTSET, LD.A.R. SUBMITTED THAT THE APP EAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFEC T AND THEREFORE, THE APPEAL OF THE REVENUE BE DISMISSED. LD.D.R . DID NOT OBJECT TO THE AFORESAID CONTENTION MADE BY THE LD.A.R. B UT HOWEVER SUPPORTED THE ORDER OF LOWER AUTHORITIES. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON PERUSING THE GROUNDS OF APPEAL RA ISED BY THE REVENUE, WE FIND THAT REVENUE IS AGGRIEVED BY THE ORDER OF LD. CIT(A) IN RESPECT OF THE RELIEF GIVEN BY HIM. AS PER THE RECENT ANNOUNCEMENT OF CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 11.07.2018 (CIRCULAR NO. 3 OF 2018), NO DEPARTMENT APPEALS ARE TO BE FILED AGAI NST RELIEF GIVEN BY LD. CIT(A) BEFORE THE INCOME TAX APPELLATE TRIBUNAL UNLESS THE TAX EFFECT, EXCLUDING INTEREST, EXCEEDS RS.20 LAKHS AND IT FURTHER 3 STATES THAT THE INSTRUCTIONS WILL APPLY RETROSPECTIVELY T O THE PENDING APPEALS ALSO. IN THE PRESENT CASE, IT IS AN UNDISPUTED FA CT THAT ON THE ADDITION WHICH IS IN DISPUTE, THE TAX EFFECT IS LESS THAN RS.2 0 LAKHS. IN THE ABSENCE OF ANY MATERIAL PLACED ON RECORD BY THE REV ENUE TO DEMONSTRATE THAT THE ISSUE IN THE PRESENT APPEAL IS COV ERED BY EXCEPTIONS PROVIDED IN PARA 10 OF THE AFORESAID CBDT CIRCU LAR, WE ARE OF THE VIEW THAT THE MONETARY LIMIT PRESCRIBED BY THE INST RUCTIONS OF THE AFORESAID CBDT CIRCULAR WOULD BE APPLICABLE TO THE PRES ENT APPEAL OF THE DEPARTMENT. WE THEREFORE HOLD THE PRESENT APPEA L OF REVENUE TO BE NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT AND AC CORDINGLY DISMISS THE APPEAL OF REVENUE WITHOUT EXPRESSING ANY OPIN ION ON MERITS OF THE CASE. HOWEVER, IN CASE THERE IS ANY ERROR IN THE COMPUTATION OF THE TAX EFFECT INVOLVED OR IF FOR ANY REASON, THE AFORESAID CBDT CIRCULAR IS NOT APPLICABLE, IT WOULD BE OPEN TO THE REVENUE TO SEEK REVIVAL OF THE APPEAL. THUS, THE GROUNDS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON 12 TH DAY OF JULY, 2019. SD/- SD/- ( VIKAS AWASTHY ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ! / ACCOUNTANT MEMBER PUNE; DATED : 12 TH JULY, 2019. YAMINI 4 '#$%&'('% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-1, PUNE. PR. CIT-1, PUNE. !,# ! , / DR, ITAT, B PUNE; %&'/ GUARD FILE. / BY ORDER // TRUE COPY // ( )*+ , / SR. PRIVATE SECRETARY # ! , / ITAT, PUNE.