ITO, Ward-5(2), Hyderabad, Hyderabad V. Jitender Kumar Kantilal Bhandari (HUF), Hyd, Hyderabad

ITA 1341/HYD/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3042 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 04-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: T CHAITANYA KUMAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL ME MBER AND SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.1341/HYD/2015 : ASSESSMENT YEARS 2010- 11 INCOME TAX OFFICER, WARD 15(2), HYDERABAD V/S SHRI JITENDER KUMAR KANTILAL BHANDARI(HUF), HYDERABAD (PAN AAEHJ 7241 L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.KURMI NAIDU DR RESPONDENT BY : SHRI T.CHAITANYA KUMAR DATE OF HEARING 10 . 2 .201 6 DATE OF PRONOUNCEMENT 10.2.2016 O R D E R PER SMT. P.MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE REVENUE AND IT IS DIR ECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) 4, HYDERABAD DATED 11.9.2015 CANCELLING THE PENALTY OF RS.5,23,800 IMPOSED BY THE ASSESSING OFFICER UNDER S.271(1)(C) OF THE INCOME TAX ACT,1961. 2. AT THE OUTSET, IT IS OBSERVED THAT VIDE CIRCUL AR NO.21/2015 DATED 10 TH DECEMBER, 2015, BEARING F.NO.279/- MISC.142/2007- ITI(PT), THE CBDT, FUNCTIONING UNDER THE MINISTRY O F FINANCE, WITH A VIEW TO REDUCE UNNECESSARY LITIGATION ON THEIR PAR T, HAS ISSUED A CIRCULAR, WHEREIN THEY HAVE REVISED THE MONETARY LI MITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APP ELLATE TRIBUNAL, HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIB UNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT S PECIFIED THAT WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT S PECIFIED THEREIN, THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR I T NEED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THEREIN IS ITA NO.1341/HYD/2015 SHRI JITENDER KUMAR KANTILAL BHANDARI(HUF), HYDER ABAD 2 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 S EPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUE(S) IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, TH E DISPUTED ISSUE ARISES IN MORE THAN ONE YEAR(S), APPEAL(S) CAN BE F ILED IN RESPECT OF SUCH ASSESSMENT YEAR(S) IN WHICH TAX EFFECT IN RES PECT OF THE DISPUTED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED, IN OTHE R WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN T HE SPECIFIED 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 EXC EPTION IS MADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASS ED BY THE FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF THE YEA RS THE TAX EFFECT IS MORE THAN RS.10 LAKHS AND THE REVENUE DECIDES TO FI LE AN APPEAL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER AL SO, REVENUE 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 TH AT MERELY BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT COME 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. 3. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLIC ABLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, TAX EFFECT O N ACCOUNT OF THE RELIEF GRANTED BY THE CIT(A) WHICH LED TO THE FILIN G OF THE PRESENT APPEAL BY THE REVENUE, IS ADMITTEDLY, LESS THAN RS .10 LAKHS. 4. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S. 268A OF THE INCOME TAX ACT,1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX A UTHORITIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 10.12.2015, ISSUED BY THE CBDT IN ITA NO.1341/HYD/2015 SHRI JITENDER KUMAR KANTILAL BHANDARI(HUF), HYDER ABAD 3 EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTIO N (1) OF S.268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL RE PRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APP EAL IS LESS THAN THE LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CIRCULAR IS SUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEAL OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUN CED IN THE OPEN COURT. SD/- SD/- (B.RAMAKOTAIAH) (P.MADHAVI DEVI) ACCOUNTANT MEMBER. JUDICIAL MEMBER DT/- 10 TH FEBRUARY, 2016 COPY FORWARDED TO: 1. SHRI JITENDER KUMAR KANTILAL BHANDARI, 5-3-831/1 /1,2&3, TOPKHANA GOSHAMAHAL, HYDERABAD 2. INCOME TAX OFFICER WARD 15(2), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) 4, HYDERABAD PR. COMMISSIONER OF INCOME-TAX-4, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.