Income Tax Officer Ward-2 , Bagalkot V. Smt Shobha Kiran Shah , Bagalkot

ITA 1211/BANG/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4179 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 11-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMARAK SWAIN J
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B E NGAL U R U BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 1 211 /BANG/20 1 8 (ASSESSMENT YEAR: 2 011 - 12 ) INCOME - TAX OFFICER, WARD - 2 , BAGALKOT . VS. APPELLANT SMT. SHOBHA KIRAN SHAH, 1856/57, BASAVESHWAR ROAD, TQ.JAMKHANDI, DIST. BAGALKOT. PAN: ASZPS8272M RESPONDENT APPELLANT BY : SHRI SMARAK SWAIN, JCIT(DR). RESPONDENT BY : NONE. DATE OF HEARING : 11 / 0 2 /201 9 DATE OF PRONOUNCEMENT: 15 / 0 2 /201 9 O R D E R PER PAVAN KUMAR GADALE , J M : THE REVENUE HAS FILED THE APPEAL AGAINST THE ORDER OF THE LEARNED CIT(A), BELAVAVI, IN I TA NO. 100/GM/2014 - 15 DATED 19 /0 2 /201 8 FOR THE ASSESSMENT YEAR 2 011 - 12 . 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. AT THE OUTSET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN TH IS APPEAL IS BELOW RS. 2 0 LAKHS. T HE CBDT, WITH A VIEW TO REDUCE UNNECESSARY LITIGATION ON THEIR PART, HAS ISSUED A CIRCULAR NO. 3/2018 DATED 11 TH JULY 2018 , WHEREIN THEY HAVE REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED, THE MONE TARY LIMIT SPECIFIED IS RS. 2 0 LAKHS. THE CBDT SPECIFIED THAT WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT SPECIFIED THEREIN, THE CONCERNED AUTHORITY ITA NO. 1 211 /BANG/201 8 PAGE 2 OF 3 HAS TO WITHDRAW ITS APPEAL OR IT NEED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX E FFECT 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 O NE 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 EFFE CT. 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. 2 0 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 EFFECT IN EACH OF THOSE YEARS IS LESS THAN RS. 2 0 LAKHS. IT WAS ALSO CLARIFIED THAT MERELY BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES N OT COME IN THE WAY OF THE DEPARTMENT IN FILING APPEAL FOR OTHER YEARS(S), AND IT DOES NOT MEAN THAT THE DEPARTMENT HAS ACQUIESCE D THE ISSUE. 3 . THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLICABLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, THE TAX EFFECT ON THE ADDITION IN DISPUTE, WHICH WAS DELETED BY THE CIT(A) BY THE IMPUGNED ORDER IS INDISPUTABLY BELOW 2 0 LAKHS. 4. THE L EGISLATUR E IN ITS WISDOM HAS INTRODUCED SECTION 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 FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 11/07/2018 , ISSUED BY THE CBDT IN EXERCISE OF THE POWERS CONFER RED IN IT BY SUBSECTION (1) OF SECTION 268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHOULD NOT HAVE BEEN ITA NO. 1 211 /BANG/201 8 PAGE 3 OF 3 PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL R EPRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APPEAL IS LESS THAN THE PRESCRIBED LIMIT IN PARA - 3 OF THE ABOVE CIRCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEAL S OF THE REVENUE AS WITHDRAWN/N OT PRESSED, AS PRONOUNCED IN THE OPEN COURT. 5. HOWEVER, THE REVENUE IS AT LIBERTY TO MOVE APPROPRIATE APPLICATION/PETITION IN CASE IT IS FOUND THAT THE CASE IS COVERED BY ONE OF THE EXCEPTIONS CARVED OUT IN THE SAID CIRCULAR. 6. IN THE RESUL T, THE REVENUES APPEAL DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JANUARY, 2019. S D/ - SD/ - (A.K.GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : BENGALURU D A T E : 15 /02 /2019. SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE