DY.C.I.T. CIRCLE KORBA, KORBA(CG) V. M/S KRISHNA AUTO RIDERS PVT. LTD, KORBA(CG)

ITA 121/BIL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8945 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 11-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P CHAUDHARY
• Assessee Lawyers: R B DOSHI
• Keywords: Principle of natural justice; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH , RAIPUR BEFORE : SHRI N.S.SAINI, A M & SHRI PAV AN KUMAR GADALE, J M ITA NO. 1 21 / RPR /20 1 5 (ASSESSMENT YEAR : 20 12 - 20 13 ) THE DCIT, CIRCLE - KORBA, MAHANADI COMPLEX, KORBA(C.G.) V S M/S KRISHNA AUTO RIDERS PVT. LT D., MODI ROAD, KORBA (CG.) P AN NO. : A ADCK 1452 E (APPELLANT ) .. TSEDNEPSER REVENUE BY : SHRI O.P.CHAUDHARY , DR ASSESSEE BY : SHRI R.B.DOSHI , AR DATE OF HEARING : 1 9 / 01 /201 8 DATE OF PRONOUNCEMENT 19 / 01 /201 8 / O R D E R PER SHRI N.S.SAINI , A M : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A ), BILASPUR , DATED 08.05.2015 FOR THE ASSESSMENT YEAR 20 12 - 2013 . 2. THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL : - 1 THE LD CIT(A) HA S ERRED IN ALLOWING RELIEF OF RS.10,69,958/ - AGAINST THE FACT THAT THE A 0 HAD DULY MADE REFERENCE TO THE VALUATION OFFICER AND THE VALUATION OFFICER MADE THE VALUATION TAKING INTO CONSIDERATION THE CONTENTIONS OF THE ASSESSEE. 2. THE LD CIT(A) HAS FAILE D TO APPRECIATE THAT IN TERMS OF PROVISIONS OF SEC. 142A, THE VALUATION OFFICER IS BOUND TO SEEK THE VERSION OF THE ASSESSEE FOR THE PURPOSE OF VALUATION AND IS ALSO BOUND TO TAKE INTO CONSIDERATION SUCH VERSION OF THE ASSESSEE IN MAKING THE VALUATION REPO RT. 3. THE LD CIT(A) HAS FAILED TO APPRECIATE THAT THE VALUATION OFFICER GIVE PROPER OPPORTUNITY TO MAKE A VALUATION AND HENCE THE COURSE OF NATURAL JUSTICE IS UNDERTAKEN AT THE LEVEL OF THE VALUATION OFFICER. 4. THE LD CIT(A) HAS FAILED TO APPRECIAT E THAT THE VALUATION OFFICER IS AN EXPERT IN HIS FIELD AND HAS, ACTED BONAFIDE AND IN DUE COURSE OF LAW. 5. THE APPELLANT CRAVES TO RAISE/AM E ND ANY GROUNDS OF APPEAL. 3. AT THE TIME OF HEARING THE AR OF THE ASSESSEE FILED A COMPUTATION SHOWING THAT THE TAX EFFECT IN THE PRESENT APPEAL FILED BY THE REVENUE IS BELOW RS.10 LAKHS. THE COMPUTATION IS AS UNDER : - ITA NO. 121 /RPR/201 5 2 CALCULATION OF TAX EFFECT ADDITIONS BEING CONTESTED BEFORE THE HONBLE ITAT RS.10,69,958/ - TAX ON ABOVE @30% RS.3,20,987/ - HE SUBMITTED THAT IN VIEW OF THE CBDT CIRCULAR NO.21/2015, DATED 10 TH DECEMBER, 2015, APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND, HENCE, LIABLE TO BE DISMISSED. 4. ON THE OTHER HAND, LD.DR FOR THE REVENUE HAS NOT CONTROVERTED THE SUBMISSIONS OF LD.AR OF THE ASSESSEE T HAT TAX EFFECT IN THE PRESENT APPEAL OF THE REVENUE WAS BELOW RS.10 LAKHS. 5. WE FIND THAT THE CBDT IN CIRCULAR NO.21/2015, DATED 10 TH DECEMBER, 2015, HAS STATED THAT, AS A MEASURE FOR REDUCING LITIGATION, IT WAS INCREASING THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT. THE SAID LIMIT FOR NOT FILING APPEAL TO THE TRIBUNAL WAS FIXED AT RS.10 LAKHS. THE CBDT HAS FURTHER STATED THAT THE SAID INSTRUCTION SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AND THAT ALL APPEALS BELOW THE SPECIFIED TAX LIMITS SHOULD BE WITHDRAWN/NOT PRESSED. HOWEVER, APPEALS BEFORE THE SUPREME COURT ARE TO BE GOVERNED BY THE LIMITS OPERATIVE AT THE TIME THAT THE APPEAL WAS FILED. THE SAID CIRCULAR OF THE CBD T IS BINDING ON THE OFFICERS OF INCOME TAX DEPARTMENT. IN VIEW OF THIS, WE HOLD THAT THE PRESENT APPEAL OF THE REVENUE BEFORE THE TRIBUNAL IS NOT MAINTAINABLE AND, HENCE, WE DISMISS THE SAME IN LIMINE . 6 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMI SSED. ITA NO. 121 /RPR/201 5 3 ORDER PRONOUNCED IN THE COURT ON FRIDAY , THE 19 TH DAY OF JANUARY, 2018 AT RAIPUR. SD/ - ( PAVAN KUMAR GADALE ) SD/ - (N. S. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER RAIPUR ; DATED 19/ 01/2018 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) INCOME TAX APPELLATE TRIBUNAL, RAIPUR 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), 4. / CIT 5. , , RAIPUR / DR, ITAT, RAIPUR 6. / GUARD FILE. //TRUE COPY//