ACIT(OSD), Ward - 12(3), Kolkata , Kolkata V. M/s. Hindusthan Club Ltd., , Kolkata

ITA 145/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1635 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 01-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJA SENGUPTA
• Assessee Lawyers: SHIKHA AGA RWAL ACA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM ./ITA NO.145/KOL/2018 ( / ASSESSMENT YEAR: 2014-15) ACIT(OSD), WARD-12(3), KOLKATA VS. M/S HINDUSTHAN CLUB LTD. 4/1, SARAT BOSE ROAD, KOLKATA- 700020. ./ ./PAN/GIR NO.: AAACH 6750 K (ASSESSEE) .. (REVENUE) ASSESSEE BY : SHRI RAJA SENGUPTA, JCIT, SR. DR RESPONDENT BY : M/S SHIKHA AGARWAL, ACA / DATE OF HEARING : 30/08/2019 /DATE OF PRONOUNCEMENT : 06/09/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE REVENUE , PERT AINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-4, KOLKATA, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT , 1961 (IN SHORT THE ACT) DATED 15/11/2016. 2. RECENTLY THE CBDT HAS ISSUED CIRCULAR NO. 17/201 9 DATED 08.08.2019, WHEREBY THE MONETARY LIMITS FOR FILING OF APPEALS BY THE D EPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN M/S HINDUSTHAN CLUB LTD. ITA NO.145/KOL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 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/- 3. IN THIS PRESENT APPEAL OF REVENUE, THE DISPUTED ADDITION IS BELOW OF RS. 50,00,000/-. SO, THE TAX EFFECT IN THIS APPEAL BY T HE REVENUE IS LESS THAN RS.50,00,000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 01.02.2018 AND WAS WITHIN THE MONETARY LIMIT IN THE FORM OF TA X 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 TH E CBDT CIRCULAR NO.17/2019 REFERRED TO ABOVE. 4. IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX CO URT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION L TD. REPORTED IN 267 ITR 272 WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISI ONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID D OWN 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 F ILED CONTRARY TO THE CIRCULAR ISSUED BY THE CBDT CIRCULAR NO.17 DATED 08.08.2019. 5. 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. 6. IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL FI LED BY THE DEPARTMENT, AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), IS CO NTRARY TO THE POLICY DECISION OF M/S HINDUSTHAN CLUB LTD. ITA NO.145/KOL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED IN LIMINE . 7. IN THE RESULT, THE APPEAL BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE COURT ON 06.09.2019 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE:06/09/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. ACIT(OSD), WARD-12(3), KOLKATA 2. M/S HINDUSTHAN CLUB LTD. 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES