Income tax Officer, Ward-8(2), Bangalore V. Sri Gautham S Varad, Bangalore

ITA 1132/BANG/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8734 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 06-01-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 03-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUN IL KUMAR AGARWALJ
• Assessee Lawyers: S VENKATESAN
• Keywords: Audit objection; Tax effect
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V.VASUDEVAN , JUDICIAL MEMBER A ND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO S . 1 132 & 1133 / BANG/20 1 4 (ASSESSMENT YEAR S : 2001 - 02 & 2002 - 03 ) INCOME - TAX OFFICER, WARD 8 ( 2 ), BANGALORE. VS. APPELLANT SHRI GAUTHAM S VARAD, NO.32, 10 TH MAIN, RMV EXTENSION, SADASHIVANAGAR, BANGALORE. PAN: ABLPG 5377 N RESPONDENT APPELLANT BY: SHRI SUNIL KUMAR AGARWAL,JCIT(DR) RESPONDENT BY: SHRI S.VENKATESAN, CA . DATE OF HEARING : 06/01/2016 DATE OF PRONOUNCEMENT: 06 / 01 /201 6 O R D E R PER N.V.VASUDEVAN , JM : TH ESE ARE APPEAL S FILED BY REVENUE DIRECTED AGAINST ORDER DATED 30/05/2014 OF CIT(A) - LTU , BANGALORE, FOR A. YS. 2001 - 02 & 2002 - 03. 02. WHEN THE APPEALS WERE TAKEN UP FOR HEARING LD. COUNSEL POINTED OUT TO THE LD. DR THAT TAX EFFECT INVOLVED IN THESE ITA NO S . 1 132 & 1133 /BANG/201 4 PAGE 2 APPEALS W AS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEAR S AND THEREFORE BY VIRTUE OF CIRCULAR NO.21/2015, DT.10.12.2015, WERE BELOW THE LIMITS LAID DOWN FOR FILING APPEALS BEFORE THIS TRIBUNAL. 03. LD. DR SUBMITTED THAT PARA 8 OF THE CIRCULAR WAS NOT APPLICABLE IN THIS CASE. THEREFORE HE D ID NOT OBJECT TO THE APPLICATION OF THE CIRCULA R. HOWEVER LD DR STATED THAT EXISTENCE OR NOT O F ANY REVENUE AUDIT OBJECTIONS LEADING TO THE FILING OF THE APPEAL NEEDED TO BE ASCERTAINED. 04. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTENTIONS. PARA 4 OF THE CIRCULAR NO.21/2015 (SUPRA) IS REPRODUCED HEREUNDER : 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFE RRED TO AS DISPUTED ISSUES ). HOWEVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 05. THE TAX EFFECT ON THE ISSUES THAT IS DISPUTED BY THE REVENUE IS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT ITA NO S . 1 132 & 1133 /BANG/201 4 PAGE 3 YEARS. CONSTITUTIONAL VALIDITY OF ANY PROVISIONS OF THE ACT OR RULES NOR THE LEGALITY OR VIRES OF ANY BOARD ORDER, NOTIFICATI ON, INSTRUCTION OR CIRCULAR WAS AN ISSUE BEFORE THE LOWER AUTHORITIES. REVENUE HAS NOT BROUGHT TO OUR NOTICE ANYTHING TO SHOW THAT THE APPEAL AROSE ON AN ISSUE EMANATING FROM ANY REVENUE AUDIT OBJECTIONS ACCEPTED BY THE DEPARTMENT. ADDITION GIVING RISE T O THE APPEALS DOES NOT RELATE TO ANY UNDISCLOSED FOREIGN ASSETS / BANK ACCOUNTS. THUS WE FIND THAT THE CIRCULAR NO.21/ 2015 (SUPRA) IS SQUARELY APPLICABLE IN THIS CASE. HOWEVER IF REVENUE, AT A LATER STAGE FIND THAT APPEAL ARISE OUT OF ISSUES EMANATING FROM AUDIT OBJECTION IT WILL BE FREE TO FILE MP FOR RECALLING THIS ORDER. 06. WITH THE ABOVE OBSERVATIONS , APPEAL S OF THE REVENUE ARE DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING I.E. ON 06/01/2016 SD/ - SD/ - ( INTURI R AMA RAO ) ( N.V.VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE