ACIT, CC-2(1), KOLKATA, Kolkata V. M/s Techno Electric & Engineering Co. Ltd., Kolkata

ITA 1392/KOL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1353 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 17-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KALYAN NATH
• Assessee Lawyers: SHIKHA AGA RWAL ACA
• Keywords: Tax effect

Judgement Text

1 ITA NO.1392-1393/KOL/2015 TECHNO ELECTRIC & ENGG. CO. LTD.., AYS 2011-12 & 20 12-13 , D , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: KOL KATA () BEFORE .., /AND . ' # $% % , ) [BEFORE SHRI A. T. VARKEY, JM & DR. A. L. SAINI, A M] I.T.A. NOS. 1392 & 1393/KOL/2015 ASSESSMENT YEAR: 2011-12 & 2012-13 ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-2(1), KOLKATA. VS. M/S. TECHNO ELECTRIC & ENGINEERING CO. LTD., (PAN: AAJCS4414Q) APPELLANT RESPONDENT DATE OF HEARING 06.09.2017 DATE OF PRONOUNCEMENT 04.10.2017 FOR THE APPELLANT SHRI KALYAN NATH, ADDL. CIT, DR FOR THE RESPONDENT MISS SHIKHA AGARWAL, ACA ORDER PER SHRI A.T.VARKEY, JM BOTH THESE APPEALS FILED BY THE REVENUE AGAINST THE SEPARATE ORDERS OF LD. CIT(A)-20, KOLKATA DATED 15.09.2015 FOR AYS 2011-12 AND 2012-1 3. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE TAX EFFECT INVOLVED IN BOTH THESE APPEALS OF REVENUE IS LESS THAN RS. TEN LAKHS. HENCE, DEPARTMENTAL APPEALS SHOULD NOT BE ALLOWED TO BE PROCEEDED WITH. WE FIN D THAT THE APPEALS OF THE REVENUE FALL IN THE KEN OF THE CBDT CIRCULAR NO. 21/2015 DATED 10.1 2.2015, WHEREIN THE CBDT HAS DIRECTED THE DEPARTMENT TO WITHDRAW/NOT PRESS THE A PPEAL IF THE TAX EFFECT IS LESS THAN RS. 10 LACS BEFORE THE ITAT. ON PERUSAL OF THE CIRCULAR N O. 21 / 2015 DATED 10.12.2015 AND THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE REV ENUES CASE DOES NOT FALL UNDER ANY OF THE EXCEPTION CLAUSE AS PROVIDED IN THE CIRCULAR, AS TH IS IS COVERED. WE ALSO FIND THAT THE CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONET ARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. WE FIND THAT THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. THIS POSITION HAS BEEN CONFIRMED BY THE HONBLE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION LTD REPORTED IN 2 67 ITR 272 (SC). HENCE, WE HOLD THAT 2 ITA NO.1392-1393/KOL/2015 TECHNO ELECTRIC & ENGG. CO. LTD.., AYS 2011-12 & 20 12-13 THE APPEALS OF THE REVENUE DESERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.21 / 2015 DATED 10.12.2015. ACCORDINGLY, THIS B EING A LOW TAX EFFECT CASE, WE DISMISS BOTH THESE APPEALS OF REVENUE IN LIMINE, AS UNADMIT TED, WITHOUT GOING INTO THE MERITS OF THE CASE. IN CASE THE REVENUE LATER FINDS THAT THE TAX EFFECT IS MORE THAN RS. 10 LAKHS THEN IT IS AT LIBERTY TO MOVE APPROPRIATE APPLICATION TO RECALL T HIS ORDER. WITH THIS CAVEAT, WE ARE INCLINED TO DISMISS BOTH THESE APPEALS OF THE REVEN UE ON THE GROUND THAT IT IS BELOW THE TAX EFFECT OF LESS THAN RS.10 LAKH. 3. IN THE RESULT, BOTH THE APPEALS OF REVENUE ARE DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 4 TH OCTOBER, 2017. SD/- SD/- (DR. A. L. SAINI) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 4 TH OCTOBER, 2017 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT ACIT, CENTRAL CIRCLE-2(1), KOLKATA 2 RESPONDENT M/S. TECHNO ELECTRIC & ENGINEERING CO. LTD., P-46A, RADHA BAZAR LANE, 1 ST FLOOR, KOLKATA-700 001. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR. PVT. SECRETARY