ACIT, Central Circle-2, Patna V. Shri Brijnandan Prasad, Patna

ITA 113/PAT/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9561 (ITAT-PATNA)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2002-2003
• Appeal Filed On: 28-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY KUMAR
• Keywords: Retrospective amendment; Tax effect
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH SMC , PATNA BEFORE SH. N. K. SAINI, ACCOUNTANT MEMBER ITA NO. 111/PAT./2016 : ASSTT. YEAR : 2000 - 01 ITA NO. 112/PAT./2016 : ASSTT. YEAR : 2001 - 02 ITA NO. 113/PAT./201 6 : ASSTT. YEAR : 2002 - 03 ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 2, PATNA VS SH. BRIJNANDAN PRASAD, PRABHA NIKETAN, BAHADUR PUR HOUSING COLONY, NEAR - R.B.I. COLONY, BHOOTNATH ROAD, PATNA - 800020 (APPELLANT) (RESPONDENT) PAN NO. ALRPP6520G A SSESSEE BY : NONE REVENUE BY : SH. ABHAY KUMAR , SR. DR DATE OF HEARING : 09 .03 .201 8 DATE OF PRONOUNCEMENT : 12 . 0 3 .201 8 ORDER THESE THREE APPEALS BY THE DEPARTMENT ARE DIRECTED AGAINST THE SEPARATE ORDER S E ACH DATED 26.08.2016 OF LD. CIT(A) - 3, PATNA . 2. SINCE, THE APPEALS RELATES TO THE SAME ASSESSEE WHICH WERE HEARD TOGETHER SO THESE ARE BEING DISPOSED OFF BY THIS CONSOLIDATED FOR THE SAKE OF CONVENIENCE AND BREVITY. 3 . NOBODY WAS PRESENT ON BEHALF OF THE ASSESSEE, NEITHER ANY ADJOURNMENT WAS SOUGHT. THEREFORE, THE APPEALS ARE DECIDED EX - PARTE QUA THE ASSESSEE. IN THE PRESENT CASE, IT IS NOTICED THAT THE TAX EFFECT IN EACH OF THESE APPEALS IS LESS THAN RS.10 LACS AND THE DEPARTMENT OUGHT NOT TO HAVE FILED THE APPEALS AS PER THE CIRCULAR NO. 21 OF 2015 ISSUED BY THE CBDT. ITA NOS. 111 & 112 /PAT . /201 6 BRIJNANDAN PRASAD 2 4. ON THE OTHER HAND, THE LD. D.R., ALTHOUGH SUPPORTED THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THIS FACT THAT TAX EFFEC T IN EACH OF THESE APPEAL S IS LESS THAN RS.10,00, 000/ - . 5 . AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT SECTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RETROSPECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE ACT PROVIDES TH AT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO THE OTHER INCOME - TAX AUTHORITIES FIXING MONETARY LIMITS FOR NOT FILING THE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS, SAID INSTRUCTIONS/DIRECTIONS ARE BINDING ON THE INCOME TAX AUTHORITIES. 6 . IT IS NOTICED THAT THE CBDT HAS ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015, VIDE WHICH IT HAS REVISED THE MONETARY LIMIT TO RS.10,00,000/ - FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE SAID CIRCULAR READS AS UNDER: .. ... 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S. NO APPEALS IN INCOME - TAX MATTER MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2 BEFO RE HIGH COURT 20,00,000/ - 3 BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS ITA NOS. 111 & 112 /PAT . /201 6 BRIJNANDAN PRASAD 3 PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERI TS OF THE CASE. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SHALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX MATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT PR OVISIONS OF STATUTE & RULES. FURTHER, FILING OF APPEAL IN CASES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDER SECTION 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY THE LIMITS SPECIFIED IN PARA 3 ABOVE AND DECISION TO FILE APPEAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS . PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 7 . FROM CLAUSE 10 OF THE ABOVE SAID CIRCULAR IT IS CLEAR THAT THESE INSTRUCTIONS ARE APPLICABLE TO THE PENDING APPEALS ALSO AND AS PER CLAUSE 3, THERE IS CLEAR CUT INSTRUCTION TO THE DEPARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE THE ITAT WHEREIN TAX EFFECT I S LESS THAN RS.10,00,000/ - . THESE INSTRUCTIONS ARE OPERATIVE RETROSPECTIVELY TO THE PENDING APPEALS. 8. KEEPING IN VIEW THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, I AM OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL. ITA NOS. 111 & 112 /PAT . /201 6 BRIJNANDAN PRASAD 4 9 . IN VIEW OF THE ABOVE, WITHOUT GOING INTO MERITS OF THE CASE, THE APPEAL S FILED BY THE DEPARTMENT ARE DISMISSED. 10 . IN THE RESULT, THE APPEALS OF THE DEPARTMENT ARE DISMISSED. (ORDER PRONOUNCED IN THE COURT ON 12 /0 3 /2018) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 12 /0 3 /2018 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR