ITO, Ward-16(4), Hyd, Hyderabad V. Medix Life Sciences (India) Pvt.Ltd., Hyd, Hyderabad

ITA 1145/HYD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5999 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 03-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: L SREENIVASA RAO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1145/HYD/2015 ASSESSMENT YEAR: 2008-09 INCOME-TAX OFFICER, WARD 16(4), HYDERABAD VS. MEDIX LIFE SCIENCES (INDIA) PVT. LTD., HYDERABAD PAN AAFCM 3185Q (APPELLANT) (RESPONDENT) C.O. NO. 6/HYD/2015 (IN ITA NO. 1145/HYD/2016 ASSESSMENT YEAR: 2008-09) MEDIX LIFE SCIENCES (INDIA) PVT. LTD., HYDERABAD PAN AAFCM 3185Q VS. INCOME-TAX OFFICER, WARD 16(4), HYDERABAD (CROSS OBJECTOR) (RESPONDENT) REVENUE BY : SHRI B. KURMI NAIDU ASSESSEE BY : SHRI L. SREENIVASA RAO DATE OF HEARING 07-03-2016 DATE OF PRONOUNCEMENT 07-03-2016 O R D E R PER V. DURGA RAO, J.M.: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) 4 , HYDERABAD, DATED 05.06.2015, FOR THE AY 2008-10. THE ASSESSEE ALSO FILED C.O. AGAINST THE SAID ORDER OF THE CIT(A). 2 ITA NO. 1145 /HYD/2015 & CO 6/H/16 K. CHANDRAKALA 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, SHRI L. SREENIVASA RAO SUBMITTED THAT THE TAX EFFECT IN THI S APPEAL IS LESS THAN RS. 10 LAKHS AND THEREFORE, REVENUES APPEAL I S LIABLE TO BE DISMISSED IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015. THIS CIRCULAR REGARDING THE PECUNIARY LIMIT F OR PREFERRING THE APPEAL BEFORE THE ITAT BY THE REVENUE HAS NOW STATU TORY FORCE UNDER SEC. 268A OF THE INCOME-TAX ACT, 1961. ON GOING THR OUGH THE ASSESSMENT ORDER, WE FIND THAT THE TOTAL INCOME AS SESSED BY THE A.O. IS AT RS. (-)3,28,212/- AND THE TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REVENUE IS LESS THAN RS. 10 LAKHS AND THIS P OSITION HAS NOT BEEN DISPUTED BY THE LEARNED DR. THEREFORE, WE ARE SATISFIED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. 3. THE CBDT VIDE CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE THE TRIBUNAL, HONBLE HIGH COURT AND HONBLE SUPREME COURT RESPEC TIVELY. THE MONETARY LIMIT FIXED FOR FILING OF APPEAL BEFORE TH E TRIBUNAL IS RS.10 LAKHS AND IT IS ALSO CLARIFIED THAT THE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WOULD HAVE BEEN CHARGEABLE ON SUCH TOTAL INCOME BEING RED UCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST W HICH, APPEAL IS INTENDED TO BE FILED AND ALSO THAT THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITS ELF IS IN DISPUTE. PARA-10 OF THE INSTRUCTION ALSO CLARIFIES THAT THE INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN THE HIGH COURTS/TRIBUNAL AND HAS DIRECTED THE DE PARTMENT TO EITHER WITHDRAW OR NOT PRESS THE APPEALS BELOW THE SPECIFI ED TAX LIMITS. DULY TAKING NOTE OF THE CBDT CIRCULAR NO.21/2015 DATED 1 0 TH DECEMBER, 2015, WE DISMISS THE APPEAL OF THE REVENUE WITH THE LIBERTY TO THE REVENUE TO SEEK RECALL OF THIS ORDER IF THIS CASE F ALLS WITHIN ANY OF THE EXCEPTIONS TO THE CBDT CIRCULAR MENTIONED THEREIN. 3 ITA NO. 1145 /HYD/2015 & CO 6/H/16 K. CHANDRAKALA 4. AS WE HAVE DISMISSED THE APPEAL OF THE REVENUE, THE C.O. FILED BY THE ASSESSEE BECOMES INFRUCTUOUS, THEREFORE, THE SAME IS DISMISSED AS INFRUCTUOUS. 5. IN THE RESULT, APPEAL OF THE REVENUE AND THE C. O. OF THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 7 TH MARCH, 2016. SD/- SD/- (S. RIFAUR RAHMAN) (V. DURGA RAO) ACCOUNTANT MEMBER JUDI CIAL MEMBER HYDERABAD, DATED: 7 TH MARCH, 2016 KV COPY TO:- 1) THE ITO, WARD 16(4), ROOM NO. 10, A BLOCK, 8 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500 004 2) M/S MEDIX LIFE SCIENCES (INDIA) PVT. LTD., #8-12 /3, STREET NO. 8, HABSIGUDA, HYDERABAD 500 007 3 CIT(A) - 4, HYDERABAD 4) CIT 4, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON SR.P.S. 2. DRAFT PLACED BEFORE AUTHOR SR.P.S 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER VP 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S. 6. KEPT FOR PRONOUNCEMENT ON SR.P S. 7. FILE SENT TO THE BENCH CLERK SR.P.S. 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER 4 ITA NO. 1145 /HYD/2015 & CO 6/H/16 K. CHANDRAKALA