ACIT, Circle-1, Warangal, Warangal V. Continental Industries, Warangal, Warangal

ITA 1242/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98822 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 28-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.1242/HYD/2015 : ASSESSMENT YEAR: 2011-12 ASSTT. COMMISSIONER OF INCOME- TAX, CIRCLE 1, WARANGAL V/S M/S. CONTINENTAL INDUSTRIES, WARANGAL (PAN - AABFC 1924 A) (APPELLANT) (RESPONDENT) CROSS OBJECTION NO.68/HYD/2015 (IN ITA NO.1242/HYD/2015) : ASSESSMENT YEAR: 201 1-12 M/S. CONTINENTAL INDUSTRIES, WARANGAL (PAN - AABFC 1924 A) V/S ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE 1, WARANGAL (CROSS OBJECTOR) (APPELLANT-IN APPEAL) APPELLANT BY : SHRI B.KURMI NAIDU DR ASSESSEE BY : NONE DATE OF HEARING 18 .1 2 .2015 DATE OF PRONOUNCEMENT 18.12.2015 O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE REVENUE, IN WHICH CROSS- OBJECTION IS FILED BY THE ASSESSEE. AT THE OUTSET, IT IS O BSERVED THAT TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. VIDE CIRCU LAR NO.21/2015 DATED 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, H AS ISSUED A CIRCULAR, WHEREIN THEY HAVE REVISED THE MONETARY LIMIT S FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPEL LATE TRIBUNAL, HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT SPECIFIE D THAT WHERE ITA NO.1242/HYD/2015 & CO THEREIN M/S.CONTINENTAL INDUSTRIES, WARANGAL 2 THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT SPECIF IED THEREIN, THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR IT N EED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDI CATED THEREIN IS APPLICABLE TO ALL PENDING APPEALS, THOUGH THEY ARE FI LED 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 TH E DISPUTED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED, IN OTHER WOR DS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN THE SP ECIFIED 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 EXCEPT ION IS MADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASSED BY THE FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF THE YEAR S THE TAX EFFECT IS MORE THAN RS.10 LAKHS AND THE REVENUE DECIDES TO FILE A N APPEAL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER ALSO, RE VENUE IS ELIGIBLE TO FILE APPEAL, EVEN THOUGH THE TAX EFFECT IN EACH OF THOSE YEARS IS LESS THAN RS.10 LAKHS. IT WAS ALSO CLARIFIED THAT MERE LY BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT CO ME IN THE WAY OF THE DEPARTMENT IN FILING APPEAL FOR OTHER YEARS(S) , AND IT DOES NOT MEAN THAT THE DEPARTMENT HAS ACQUIESCED THE ISSUE. 2. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLICABLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, WE FIND THAT THE RELIEF GRANTED BY THE CIT(A) IN THE IMPUGNED ORDER IS BY WAY OF DEL ETION OF DISALLOWANCE MADE BY THE ASSESSING OFFICER IN TERMS OF S.4 0(A)(IA) TO THE EXTENT OF RS.28,62,000. ADMITTEDLY, THUS, THE TA X EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10 LAKHS. ITA NO.1242/HYD/2015 & CO THEREIN M/S.CONTINENTAL INDUSTRIES, WARANGAL 3 3. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S.268A OF THE INCOME TAX ACT, 1961, WHEREBY THE BOARD IS EMPOWERED T O ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX AUTHORI TIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FIL ING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 10.12.2015, ISSUED BY T HE CBDT IN EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTION (1) O F S.268A, WE ARE OF THE VIEW THAT THE APPEALS FILED HEREIN SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL REPR ESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APPEA L IS LESS THAN THE LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CIRCULAR ISSUED B Y THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS TH E APPEAL OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUNCED I N THE OPEN COURT. 4. CROSS-OBJECTION OF THE ASSESSEE, BEING MERELY SUPPORTI VE OF THE IMPUGNED ORDER OF THE CIT(A) IN THE LIGHT OF THE APPEAL OF THE REVENUE, IS INFRUCTUOUS AND AS SUCH, LIABLE TO BE DISMI SSED. WE DO SO ACCORDINGLY, AS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (D.MANMOHAN) (INTURI RAMA RAO) VICE PRESIDENT ACCOUNT ANT MEMBER DT/- 18 TH DECEMBER, 2015 ITA NO.1242/HYD/2015 & CO THEREIN M/S.CONTINENTAL INDUSTRIES, WARANGAL 4 COPY FORWARDED TO: 1. M/S. CONTINENTAL INDUSTRIES, D.NO.14-971/3, CHARBOW LI, WARANGAL 506 002 2. ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-1, AAYAKAR BHAVAN, STATION ROAD, WARANGAL 3. 4. COMMISSIONER OF INCOME-TAX(APPEALS) 3, HYDERABAD PR. COMMISSIONER OF INCOME-TAX 3, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD TNMM