ACIT, Circle-16(2), Hyd, Hyderabad V. Dolphin Hotels Ltd., Hyd, Hyderabad

ITA 1148/HYD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6055 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2016
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 18-02-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 08-09-2015
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Assessee Lawyers: V SIVA KUMAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ES A , HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 1148 /H YD /20 15 ASSESSMENT YEAR : 20 1 1 - 12 AS ST. COMMISSIONER OF INCOME TAX , CIRCLE - 16(2), HYDERABAD VS M/S. DOLPHIN HOTELS LTD., HYDERABAD [PAN: A A ACD7740B ] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI M. SITARAM, DR FOR ASSESSEE : SHRI V. SIVA KUMAR , AR DATE OF HEARING : 1 8 - 0 2 - 201 6 DATE OF PRONOUNCEMENT : 18 - 0 2 - 201 6 O R D E R PER S.S. VISWANETHRA RAVI , J .M. : THIS APPEAL IS FILED BY THE REVENUE. AT THE OUTSET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS.10 LAKHS. VIDE CIRCULAR NO.21/2015 DA TED 10 TH DECEMBER, 2015, BEARING F.NO.279/ - MISC.142/2007 - ITI(PT), THE CBDT, FUNCTIONING UNDER THE MINISTRY OF FINANCE, WITH A VIEW TO REDUCE UNNECESSARY LITIGATION ON THEIR PART, HAS ISSUED A CIRCULAR, WHEREIN THEY HAVE REVISED THE MONETARY LIMITS FOR FI LING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT SPECIFIED THAT WHERE I.T.A. NO. 11 48 / HYD / 20 15 M/S. DOLPHIN HOTELS LTD., : - 2 - : THE TAX EFFECT DOES NOT EXCEED THE MONE TARY LIMIT SPECIFIED THEREIN, THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR IT NEED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THEREIN IS APPLICABLE TO ALL PENDING APPEALS, THOUGH THEY ARE FILED BY THE REVENUE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFIED THAT THE ASSESSING OFFICER HAS TO CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUE(S) IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUE ARISES IN MORE THAN ONE YEAR(S), APPEAL(S) CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR(S) IN WHICH TAX EFFECT IN RESPECT OF THE DISPUTED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED, IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN THE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME HAS TO BE WITHDRAWN FOR THAT YEAR, FOR WANT OF TAX EFFECT. HOWEVER, AN EXCEPTION IS MADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASSED BY THE FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF THE YEARS THE TAX EFFECT IS MORE THAN RS.10 LAKHS AND THE REVENUE DECIDES TO FILE AN APPEAL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER ALSO, REVENUE IS ELIGIBLE TO FILE APPEAL, EVEN THOUGH THE TAX EFFE CT IN EACH OF THOSE YEARS IS LESS THAN RS.10 LAKHS. IT WAS ALSO CLARIFIED THAT MERELY BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT COME IN THE WAY OF THE DEPARTMENT IN FILING APPEAL FOR OTHER YEAR(S), AND IT DOES NOT MEAN THAT THE D EPARTMENT HAS ACQUIESCED THE ISSUE. 2. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLICABLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, TAX EFFECT ON ACCOUNT OF THE RELIEF GRANTED BY THE CIT(A) WHICH LED TO THE FILING OF THE PRESENT APPEAL BY THE REVENUE , IS ADMITTEDLY, LESS THAN RS.10 LAKHS. I.T.A. NO. 11 48 / HYD / 20 15 M/S. DOLPHIN HOTELS LTD., : - 3 - : 3. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S.268A OF THE INCOME TAX ACT,1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME - TAX AUTHORITIES, FIXING THE MONETARY LIMITS F OR THE PURPOSE OF REGULATING THE FILING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 10.12.2015, ISSUED BY THE CBDT IN EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTION (1) OF S.268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHOULD NOT HAVE B EEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED IN PARA - 3 OF THE ABOVE CIRCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE , WE DISMISS THE APPEAL OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUNCED IN THE OPEN COURT. SD/ - SD/ - (B. RAMAKOTAIAH) (S.S. VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 18 TH F EBRUARY, 2016 TNMM COPY TO : 1. ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 16(2), ROOM NO. 611, 6 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2 . M/S. DOLPHIN HOTELS LTD., HOTEL SITARA, RAMOJI FILM CITY, HAYATHNAGAR MANDAL, HYDERABAD. 3 . CIT ( AP PEAL S ) - 4 , HYDERABAD. 4. THE CIT - 4 , HYDERABAD. 5 . D.R. ITAT, HYDERABAD. 6 . GUARD FILE.