DCIT, V. Smt. B.M. Mumtaz Ali,

ITA 1124/BANG/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0238 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-06-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 15-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SHARMA SHRI P CHA
• Keywords: Audit objection; Tax effect

Judgement Text

ITA.1124/BANG/2013 PAGE - 1 CO NO.20/BANG/2014 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T.A NO.1124/BANG/2013 (ASSESSMENT YEAR : 2003-04) DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -2(3), MANGALURU .. APPELLANT V. SMT. B. M. MUMTAZ ALI, SHOWKATH MANZIL, 8 TH BLOCK, CHOKKABETTU, SURATHKAL, MANGALURU .. RESPONDENT PAN : ADDPA6813B CROSS OBJECTION NO.20/BANG/2014 (I.T.A NO.1124/BANG/2013) (ASSESSMENT YEAR : 2003-04) (BY THE ASSESSEE) ASSESSEE BY : SHRI NARENDRA SHARMA, ADVOCATE REVENUE BY : SHRI. P. CHANDRASHEKAR, CIT - DR HEARD ON : 22.06.2016 PRONOUNCED ON : 30 .06.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THESE ARE APPEAL AND CROSS OBJECTION FILED BY THE R EVENUE AND ASSESSEE RESPECTIVELY, AGAINST ORDER DATED 23.03.20 13 OF CIT (A), MYSURU, FOR THE A. Y. 2003-04. ITA.1124/BANG/2013 PAGE - 2 CO NO.20/BANG/2014 02. WHEN THE APPEAL AND CO WERE TAKEN UP FOR HEARIN G, 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.1124/BANG/2013 PAGE - 3 CO NO.20/BANG/2014 05. THE TAX EFFECT ON THE ISSUES THAT ARE DISPUTED BY THE REVENUE IS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEAR. 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 APPEAL AROSE ON AN 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 APPEAL GETS REVIVED THEN NEEDLE SS TO SAY THE CO SHALL ALSO BE REVIVED. 06. IN VIEW OF THE ABOVE, CROSS OBJECTION BY THE AS SESSEE BECOMES INFRUCTUOUS AND IS DISMISSED. ITA.1124/BANG/2013 PAGE - 4 CO NO.20/BANG/2014 07. WITH THE ABOVE OBSERVATIONS APPEAL OF THE REVEN UE AND CROSS OBJECTION BY THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF JUNE, 2016. SD/- (ABRAHAM P GEO RGE) ACCOUNTANT MEMBER MCN 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.1124/BANG/2013 PAGE - 5 CO NO.20/BANG/2014