DCIT, International Taxation, Chandigarh V. Sh. Prem Kumar Bhagat, Jalandhar

ITA 1232/CHANDI/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5145 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 28-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C CHANDRAKANTA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA,ACCOUNTANT MEMBER ITA NO. 1232/CHD/2016 ASSESSMENT YEAR: 2006-07 THE DCIT, VS SHRI PREM KUMAR BHAGAT, INTERNATIONAL TAXATION, VPO-BARA PIND, CHANDIGARH. TEHSIL GORAYA, DISTT. JALANDHAR. PAN: ANWPB0092L (APPELLANT) (RESPONDENT) DEPARTMENT BY : SMT. C.CHANDRAKANTA, DR ASSESSEE BY : NONE DATE OF HEARING : 30.05.2017 DATE OF PRONOUNCEMENT : 31.05.2017 O R D E R PER SANJAY GARG, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE HAS BEEN DIRECTED AGAINST ORDER OF LD. CIT (APPEALS)-43, NEW DELHI DA TED 23.09.2016 RELATING TO ASSESSMENT YEAR 2006-07. 2. ADMITTEDLY, THE TAX EFFECT IN THIS CASE IS LESS THAN RS. 10 LACS. AS PER CIRCULAR NO.21 OF 2015 DATED 10.12 .2015, IT HAS BEEN DECIDED BY THE CBDT THAT THE APPEALS HAVIN G TAX EFFECT LESS THAN RS. 10 LACS ARE NOT TO BE FILED/WI THDRAWN FROM THE ITAT. THE SAID CIRCULAR HAS ALSO BEEN MAD E APPLICABLE TO PENDING APPEALS. 2(I) HOWEVER, IT HAS BEEN PLEADED IN GROUND NO. 4 OF THE APPEAL THAT THOUGH TAX EFFECT IS LESS THAN RS. 10 L ACS, HOWEVER, THE CASE/APPEAL FAILS WITHIN THE EXCEPTION S CARVED OUT IN PARA 5 OF THE SAID CIRCULAR. SINCE A COMPOS ITE ORDER 2 HAS BEEN PASSED BY THE CIT(A) AND AS PER PARAGRAPH 5 OF THE SAID CIRCULAR NO. 21/2015, APPEAL SHALL BE FILED IN RESPECT OF ALL SUCH ASSESSMENT YEARS EVEN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS. IN CASE THERE WAS A COMPOSITE ORDER OF THE APPELLATE AUTHORITY AND IN A NY YEAR, THE TAX EFFECT EXCEEDS THE MONETARY LIMIT PRESCRIBE D. 3. WE HAVE CONSIDERED THE ABOVE PLEADING. WE FIND THAT THE ORDER OF THE CIT(A) IS NOT A COMPOSITE ORDER IN THIS CASE. THE IMPUGNED ORDER DATED 23.09.2016 IS RELEVANT TO ASSESSMENT YEAR 2006-07 ONLY. THOUGH IT HAS BEEN P LEADED THAT THE ORDER FOR ASSESSMENT YEAR 2005-06 WAS ALSO PASSED BY THE CIT(A) BUT THAT MIGHT BE A SEPARATE ORDER. MOREOVER, ADMITTEDLY THE DEPARTMENT HAS NOT FILED APPEAL FOR ASSESSMENT YEAR 2005-06 AS HAS BEEN PLEADED IN THE GROUNDS OF APPEAL ITSELF. MERELY BECAUSE THE DEPAR TMENT IS IN PROCESS OF FILING THE APPEAL FOR ASSESSMENT YEAR 2005-06, THAT ITSELF DOES NOT MAKE NEITHER THE IMPUGNED ORDE R OF THE CIT(A) NOR THE PRESENT APPEAL AS COMPOSITE. HENCE, THE SAID EXCEPTION CLAUSE OF THE CIRCULAR IS NOT APPLICABLE TO THE CASE IN HAND. WE, THEREFORE, RELYING UPON THE DECISION OF THE HON'BLE PUNJAB & HARYANA HIGH COURT DATED 30.01.201 7 PASSED IN ITA 406/2016 O&M, DISMISS THE PRESENT APP EAL ON ACCOUNT OF TAX EFFECT BEING LESS THAN RS. 10 LACS A ND BEING HIT BY CIRCULAR NO.21 OF 2015 DATED 10.12.2015 OF T HE CBDT. HOWEVER, IT IS CLARIFIED THAT THE SAID DISMI SSAL OF THE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF ORDE R OF THE CIT(A) ON MERITS. FURTHER, THE ISSUES TAKEN IN THE GROUNDS 3 OF APPEAL BY THE REVENUE ARE BEING LEFT OPEN TO BE ADJUDICATED IN APPROPRIATE CASE. 4. IN THE RESULT, APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) ( SANJAY GARG) (ACCOUNTANT MEMBER) JUDICIAL MEMB ER DATED: 31 ST MAY, 2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD