The ACIT, Circle-6, Surat V. M/s. Maa Krupa Construction Company, Surat

ITA 1275/AHD/2015

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3498 (ITAT-SURAT)
• Duration Of Justice: 5 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 13-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B P K
• Keywords: Tax effect
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, HONBLE JUDICIAL MEMBER & DR. A. L. SAINI, HONBLE ACCOUNTANT MEMBER ./ITA NO.1275/AHD/2015 ( [ [ / ASSESSMENT YEAR:2009-10) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(3), SRUAT. VS. M/S. MAA KRUPA CONSTRUCTION COMPANY, 91, MAA KRUPA RESIDENCY, KHARVASA MAIN ROAD, DINDOLI, SURAT. ./ ./PAN/GIR NO.: AAQFM5687H (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI BIPIN JARIWALA - AR RESPONDENT BY : SHRI B P K PANDA SR. DR / DATE OF HEARING : 12/11/2020 /DATE OF PRONOUNCEMENT : 12/11/2020 / O R D E R DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL FILED BY THE REVENUE, PERTAINING TO ASSESSMENT YEAR 2009-10, IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEAL)-1, SURAT [IN SHORT CIT(A)] IN APPEAL NO. CAS-I/244/2013-14, WHICH IN TURN ARISES OUT OF A PENALTY ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 27.09.2013. 2. IN THIS REVENUES APPEAL IN ITA NO. 1275/AHD/2015 FOR AY.2009-10, WE NOTICED THAT REVENUE HAS CHALLENGED THE AMOUNT OF PENALTY TO THE TUNE OF RS.37,38,000/- DELETED BY THE LD. CIT(A). 3. RECENTLY THE CBDT HAS ISSUED CIRCULAR NO. 17/2019 DATED 08.08.2019, WHEREBY THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN ITA NO.1275/AHD/2015 ASSESSMENT YEAR:2009-10 MAA KRUPA CONSTRUCTION COMPANY PAGE | 2 INCREASED AS MEASURE FOR REDUCING LITIGATION. THE REVISED MONETARY LIMITS LAID DOWN IN PARA-2 OF THIS CIRCULAR ARE AS FOLLOWS: 1. BEFORE APPELLATE TRIBUNAL RS. 50,00,000/- 2. BEFORE HIGH COURT RS.1,00,00,000/- 3. BEFORE SUPREME COURT RS. 2,00,00,000/- 4. IN THE PRESENT CASE, THE TAX EFFECT BY THE REVENUE IS LESS THAN RS.50,00,000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 13/05/2015 AND WAS WITHIN THE MONETARY LIMIT IN THE FORM OF TAX EFFECT FOR FILING APPEALS BEFORE TRIBUNAL, IN VIEW OF THE RECENT CIRCULAR OF CBDT, EVEN SUCH APPEALS WILL BE GOVERNED BY THE NEW MONETARY LIMITS LAID DOWN IN THE CBDT CIRCULAR NO.17/2019 REFERRED TO ABOVE. 5. IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS. INDIAN OIL CORPORATION LTD. REPORTED IN 267 ITR 272 WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISIONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID DOWN THAT WHEN A CIRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUND BY IT AND CANNOT BE ALLOWED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY TO THE TERMS OF THE STATUTE. THE APPEAL UNDER CONSIDERATION HAS CERTAINLY BEEN FILED CONTRARY TO THE CIRCULAR ISSUED BY THE CBDT CIRCULAR NO.17 DATED 08.08.2019. 6. IN THE EVENT, THE REVENUE FINDS AT A LATER POINT OF TIME THAT THE TAX EFFECT IN THE APPEAL IS MORE THAN RS.50 LAKHS OR DESPITE LOW TAX EFFECT THE APPEAL OF THE REVENUE IS MAINTAINABLE, THE REVENUE IS AT LIBERTY TO MOVE THIS TRIBUNAL FOR RECALLING OF THIS ORDER 7. IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL FILED BY THE DEPARTMENT, AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), IS CONTRARY TO THE POLICY DECISION OF ITA NO.1275/AHD/2015 ASSESSMENT YEAR:2009-10 MAA KRUPA CONSTRUCTION COMPANY PAGE | 3 THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY THE DEPARTMENT IN ITA NO. 1275/AHD/2015 IS DISMISSED IN LIMINE . 8. IN THE RESULT, THE APPEAL OF THE REVENUE (IN ITA NO.1275/AHD/2015 FOR AY. 2009-10) IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 12/11/2020 SD/- ( PAWAN SINGH ) SD/- (DR. A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 12/11/2020 (SAMANTA, PS) COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. PR. CIT 5. DR /TRUE COPY/ // TRUE COPY // BY ORDER ASSISTANT REGISTRAR, ITAT, SURAT