ITO, WD-1(1), KOLKATA, Kolkata V. M/s Ambika Bhawani Cold Storage Pvt. Ltd., Malda

ITA 1122/KOL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4594 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 23-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANKAR HALDER JCITSRDR
• Keywords: Tax effect

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.1122/KOL/2016 ASSESSMENT YEARS: 2007-08 INCOME TAX OFFICER WARD-1(1), P-7, CHOWRINGHEE SQUARE, ROOM NO.06, 7 TH FLOOR, KOLKAKTA-69 / V/S . M/S AMBIKA BHAWANAI COLD STORAGE PVT. LTD. BANIA CHAKRAMDAS, SARAIYAVAISHALI, MUZAFFARPUR-844128 [ PAN NO.AAFCA 0230 Q ] /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SANKAR HALDER, JCIT-SR-DR /BY RESPONDENT SHRI SUBASH AGARWAL, ADVOCATE /DATE OF HEARING 21-06-2019 /DATE OF PRONOUNCEMENT 28-08-2019 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2007-08 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-9, KOLKATAS O RDER DATED 11.02.2016 PASSED IN CASE NO.237/CIT(A)-/WD.1(1)/2015-16/KOL, INVOLVI NG PROCEEDINGS U/S143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE(S) PERUSED. 2. WE NOTICE AT THE OUTSET THAT REVENUES INSTANT A PPEAL SUFFERS FROM THREE DAYS DELAY. IT HAS PLACED ON RECORD CONDONATION PETITION CITING REASONS THEREOF WHICH IS NOT ITA NO.1122/KOL/2016 ASSESSMENT YEAR 2007-08 ITO WD-1(1), KOL. VS M/S AMBIKA BHAWANI COLD STORAGE PVT. LTD. PAGE 2 DISPUTE AT ASSESSEES BEHEST. WE THEREFORE CONDONE THE IMPUGNED DELAY OF THREE DAYS FILING OF THE INSTANT APPEAL. THE CASE IS NOW TAKEN UP FOR ADJUDICATION ON MERIT. 2. IT IS SEEN AT THE OUTSET THAT THE TAX EFFECT ON THE DISPUTED ADDITIONS BEFORE US IS LESS THAN RS. 50 LACS IN CASES I.E. LESS THAN THE P RESCRIBED REVISED THRESHOLD LIMIT IN CBDTS LATEST CIRCULAR NO17/2019 DATED 08.08.2019. IT WILL BE PERTINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCULAR AS FOLLOWS:- 2 . AS A STEP TOWARD FURTHER MANAGEMENT OF LITIGATION , IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50,00,000 2. BEFORE HIGH COURT 1,00,00,000 3. BEFORE SUPREME COURT 2,00,00,000 3.1 WE FIND THAT INTENTION BEHIND THE CIRCULAR NO17 /2019 DATED 08.08.2019 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS- -VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSES SMENT YEAR IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF, THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES AR ISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3 . NO. APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT I S LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF C OMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENTS YEAR , NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CAS E WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EAC H ASSESSEE SHALL BE DEALT WITH SEPARATELY. 3.2. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DATED 0 8.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, WE DO NOT SEE THIS CASE FALLIN G UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR PER SE . WE ALSO FIND THAT THIS CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AS ITA NO.1122/KOL/2016 ASSESSMENT YEAR 2007-08 ITO WD-1(1), KOL. VS M/S AMBIKA BHAWANI COLD STORAGE PVT. LTD. PAGE 3 WELL. H ONBLE APEX COURT IN COMMISSIONER OF CUSTOMS VS IND IAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) HAS SETTLED THE LAW THAT CBDTS CIRCULARS ARE VERY MUCH BINDING ON REVENUE AUTHORITIES. WE THUS HOLD THAT T HIS REVENUES APPEAL RAISING SOLE ISSUE OF 32,79,511/- DESERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT. WE MAKE IT CLEAR THAT IT SHALL VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RECTIFICATION IN CASE IT IS FOUND THAT ANY OF THE APPEAL INVOLVE OPE RATIONS OF EXCEPTION CLAUSES IN THE TAX EFFECT CIRCULAR AS PER LAW. 4. THIS REVENUES APPEAL IS DISMISSED FOR INVOLVING LOWER THAN THE PRESCRIBED MINIMUM TAX EFFECT. ORDER PRONOUNCED IN OPEN COURT ON 28/08/2019 SD/- SD/- ( &) (( &) (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS ) - 28/08/2019 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ITO WD-1(1), P-7, CHOWIRNGHEE SQ. R.NO.6 7 TH FL. KOLKATA-69 2. /RESPONDENT-M/S AMBIKA BHAWANI COLD STORAGE PVT. LT D., BANIA CHAKRAMDAS, SA RAIYA VAISHALI, MUZAFFARPUR-844128 3. , - / CONCERNED CIT 4. - - / CIT (A) 5. . ((, , , /DR, ITAT, KOLKATA 6. 2 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ ,,