DCIT, CIR-3, KOLKATA, Kolkata V. M/s Star Pipe Products (India) Pvt. Ltd., Howrah

ITA 1459/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100284 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 27-06-2014
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI M. BALAGANES H, AM] ITA NO. &A.Y. (1) REVENUE/REP. BY (2) V S 3 ASSESSEE/PAN/REP. BY (4) QUANTUM INVOLVED (5) TAX EFFECT INVOLVED (6) 1459/KOL/2014 AY. 2004-05 DCIT, CIR-3, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. STAR PIPE PRODUCTS (I) PVT. LTD. PAN: AAGCS3744J , REP. BYNONE 106, KIRAN CHANDRA SINGHA ROAD, SHIBPUR, HOWRAH RS. 2643073 RS. 898644 648/KOL/2015 AY. 2011-12 DCIT, CIR-3(1), SILIGURI REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR PRADEEP RAKHECHA. PAN:AGFPR2711L , REP. BY NONE, M/S. AUTO LINK, SEVOKE ROAD, SILIGURI-734001 RS. 1710310 RS. 581505 666/KOL/2015 AY. 2000-01 DCIT, CIR-4(2), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. MADHYA BHARAT PAPERS LTD. PAN: AADCM6254E , REP.BY NONE 113, PARK STREET, 4 TH FLOOR, KOLKATA- 700016 RS.1932020 RS.656886 607/KOL/2015 AY. 2010-11 DCIT, CIR-2, DURGAPUR REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. B. N. DUTTA, PAN: AADFB0648J, REP. BY NONE, 528, G. ROAD, SONARI, WEST LAYOUT, JAMSHEDPUR-831011, JHARKHAND RS.2484418 RS.844702 79/KOL/2015 AY.2011-12 DCIT, CIR-5(2), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. BRABOURNE COMMERCE (P) LTD. PAN: AACCB2619M, REP. BY SHRI AKKAL DUDHWEWALA, AR 2, RED CROSS PLACE, KOLKATA-1. RS.742171 RS.222651 69/KOL/2015 AY. 2009-10 ITO, WD-30(1),KOL. REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR SHRI BHAGWATI PRASAD PARASRAMPURIA. PAN: AFKPP8883R , REP. BY NONE 22B, GARCHA 1 ST LANE, 1 ST FLOOR, KOLKATA-700019. RS.1754300 RS.596462 2251/KOL/2013 AY. 2008-09 ITO, WD-3(4), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. ROCK HARD ENGINEERING P LTD. PAN: AAACI 5412R, REP. BY NONE, 156A, LENIN SARANI, ROON NO. 313, 3 RD FLOOR, KOL-13. RS. 1655369 RS. 562825 2676/KOL/2013 AY. 2005-06 ITO, WD-9(1),KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. M. L. DEBNATH & BROS HOLDINGS PVT. LTD ., PAN: AACCM1136G , REP. BY SMT. VARSHA JALAN, ADVOCATE, 2 ND FLOOR, 166, COTTON STREET, KOLKATA-7 RS.712000 RS. 263092 2650/KOL/2013 AY. 2007-08 ACIT,CIR-28, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR BHAKTA HARI NAYAK, PAN:ABUPN3618C , REP. BY NONE 9/5J, MUNSHIGUNJ ROAD, KOL- 700023. RS.2506157 RS.852093 1100/KOL/2015 AY. 2006-07 ITO, WD-13(4), KOL. REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. SHREE NIWAS EXPORT PVT. LTD. PAN: AAFCS0187E , REP. BY NONE, 122-A, C. R. AVENUE, KOL-73. RS.1255520 RS.426876 106/KOL/2013 AY. 2007-08 ACIT,CIR-43, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. M. K. BROTHERS, PAN: AAEFM7608J , REP. BY MISS VARSHA JALAN, ADVOCATE, 24/25, RUP CHAND ROY STREET, KOL-7. RS.1270984 RS. 427813 2381/KOL/2013 AY. 2006-07 DCIT, CIRCLE-4, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR RUNGAMATEE TEA & INDUSTRIES LTD. PAN: AABCR1833Q , REP. BY NONE 90/31, DIAMOND HARBOUR ROAD, KOLKATA-700038 RS.1593878 RS. 541918 2 2 1970/KOL/2014 AY. 2008-09 ITO, WD-8(4), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. SPML INDUSTRIES LTD. PAN: AAECS4141F , REP. BY NONE 113, PARK ST., 3 RD FLOOR, KOL-16. RS.1030759 RS.350458 1979/KOL/2014 AY. 2009-10 ITO, WD-12(2), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. MEHUL OVERSEAS PVT. LTD. PAN: AACCM3141M, REP. BY S/SHRI V. N. PUROHIT & HARSH VARDHAN BHARDWAJ, FCA, 61/B, SOUTHEND PARK, KOL-29. RS.2133344 RS.725336 2229/K/2014 AY. 2010-11 DCIT, CC-4(1), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. JAGRITI TRADE SERVICES PVT.LTD. PAN: AAACJ8509L , REP. BY NONE 3A, SHAKESPEARE SARANI, CAMAC ST., KOLKATA-700071. RS. 2650963 RS. 901327 IT(SS)A NO.113- 115/KOL/2014 AY. 2000-01- 2002-03 DCIT, C.C-XXI, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR SUBHAS CHAND JAIN (GOYAL) PAN: ACOPJ3528L , REP. BY NONE 40B, HARIYANA NIWAS, VIVEKANANDA ROAD, KOLKATA-700007 AY 2000-01 RS.404230 AY 2001-02 RS.375940 AY 2002-03 RS.380790 AY 2000-01 RS.137438 AY 2001-02 RS. 127836 AY 2002-03 RS.129468 536/KOL/2015 AY. 2008-09 ITO, WD-23(2), HOOGHLY REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. DUTTA TRADING COMPANY, PAN: AAEFD2393P , REP. BY NONE, C/O SUBAL CHANDRA DUTTA, 9/24/6, SARAT SARANI 1 ST LANE, P.O. MORE PUKUR (SAHA PARA), RISHRA, HOOGHLY-712250 RS.2500000 RS.850000 537/KOL/2015 AY. 2007-08 ITO, WD-1(2), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR MUKHERJEE & ALLIANCES PVT. LTD. PAN: AABCM9898C , REP. BY NONE 3, OLD COURT HOUSE CORNER, 2 ND FLOOR, R. NO. 3, KOLKATA-700001. RS.1624976 RS. 552491 65/KOL/2015 AY. 2010-11 DCIT, CIR- 11(1),KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. CHEMCROWN EXPORTS LTD. PAN: AABCC1681M , REP. BY NONE 95, PARK STREET, KOLKATA-700020. RS.1404966 RS. 477688 2420/KOL/2013 AY 2006-07 ACIT, CIR-53, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. PROCESS CHEMICALS ,\ PAN: AADFP9265D , REP. BY NONE, B-889, BEHALA INDUSTRIAL ESTATE, BANAMALI NASKAR ROAD, KOLKATA- 700060 RS.770365 RS. 261924 1963/KOL/2014 AY 2010-11 ITO, WD-33(3), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. W.J.C. COMPANY, PAN: AAAFW4407H , REP. BY NONE 20A, MARKET STREET, KOLKATA-700 087. RS.1582091 RS. 537910 2275/KOL/2013 AY. 2007-08 ITO, WD-2(2), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. GENESIS TRADE LINK PVT. LTD. PAN: AACCG4903H, REP. BY SH. M. D. SHAH, AR, 7, SHAMBHU MULLICK LANE, GROUND FLOOR, KOLKATA-700007 U/S. 271(1)(C) RS.599769 2558/KOL/2013 AY. 2009-10 ACIT,CIR-3, ASANSOL REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. RENSHEL EXPORTS PVT. LTD. PAN: AABCR4001N, REP. BY NONE BARAKAR ROAD, PURULIA-723101 RS. 1608546 RS. 497040 2564/KOL/2013 AY. 2008-09 ITO, WD-3(1), ASANSOL REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR BIMAL KR. SARAF (HUF) PAN: AAEHB3384G , REP. BY NONE DR. M. N. GHOSH ROAD, RANIGANJ, DIST. BURDWAN-713347 RS.2310326 RS. 785510 1346/KOL/2013 DCIT, CIR-1, KOLKATA M/S. KAMARHATTY COMPANY LTD. RS.1241741 RS. 422191 3 3 AY. 2009-10 REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR PAN: AABCK2916K , REP. BY NONE 16A, BRABOURNE ROAD, KOLKATA- 700001. 1315/KOL/2013 AY. 2009-10 ITO, WD-53(3), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR MITALI RAKSHIT (PROP. M/S. ALICK JEWELLERS), PAN: AFWPR3064Q REP. BY NONE, N-92/E, PAHARPUR ROAD, KOLKATA- 700024. RS.2011842 RS. 684026 1117/KOL/2012 AY 2008-09 DCIT, CIR-9, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. CALCUTTA HALDIA SHIPPING SERVICES (P) LTD., PAN: AAACC9924G REP. BY SHRI PRANABESH SARKAR, ADV. 23A, N. S. ROAD, KOLKATA-700 001. RS.2070508 RS.639787 550/KOL/2015 AY. 2011-12 ITO, WD-40(1), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. JOYDURGA LIBRARY, PAN: AACFJ1253A , REP. BY NONE 8A, COLLEGE ROW, AMHERST STREET, KOLKATA-700 009. RS.2998858 RS. 959634 1615/KOL/2014 AY. 2011-12 ITO, WD-33(4), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. SPML-HCIL JV, PAN: AADAS1471P REP. BY NONE 22, CAMAC STREET, BLOCK-A, 3 RD FLOOR, KOLKATA-700 001. RS.2834010 RS.963563 1184/KOL/2013 AY. 2008-09 ITO, WD-3(1), ASANSOL REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. NANDY JEWELLERS. PAN: AAFFN0082N, REP. BY NONE M.G.ROAD,RANIGANJ-713347, BURDWAN. RS.2557952 RS.869703 2174/KOL/2013 AY 2007-08 ITO, WD-46(4), KOLKATA REP. BY SHRI UDAY KR. SARDAR, JCIT, SR. DR SK. KASEM ALI, PAN: AEOPA4567J REP. BY NONE, VILL & PO SHANKHALI, PANCHLA, HOWRAH-711322. RS.2056678 RS.699270 1619/KOL/2014 AY.2008-09 ITO, WD-28(1), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR SMT. IPSITA NANDI, PAN:ADGPN9828E , REP. BY SHRI M. D. SHAH, AR, 26, RUSSA ROAD, KOLKATA-700033 RS.1727000 RS. 711524 391/KOL/2015 AY 2011-12 ITO, WD-1(2), JALPAIGURI REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR SRI MUKUL KUMAR KUNDU PAN: AFKPK0943H , REP. BY NONE DESHBANDHUPARA, PO HALDIBARI, DIST. COOCHBEHAR-735122,WB. RS.2113031 RS.718430 888/KOL/2013 AY: 2003-04 ITO, WD-7(2), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. TIRUPATI INTERNATIONAL PVT. LTD. PAN: AABCT0701D, REP. BY SHRI A. K. TIBREWAL, FCA, 219, CHITTARANJAN AVENUE, KOLKATA- 700006. RS.1341596 RS.493037 1516/KOL/2013 AY 2004-05 ITO, WD-3(1), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. HORIZON MULTIPROJECTS LTD. PAN: AAACH7140R , REP. BY NONE 1, BRITISH INDIAN STREET, 4 TH FLOOR, KOLKATA-700069. RS.2803733 RS.953269 1525/KOL/2013 AY 2006-07 ITO, WD-3(4), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. CRESMAC FOUNDRY (P) LTD. PAN:AABCC0933C , REP. BY NONE P-389, BLOCK-G, NEW ALIPORE, KOLKATA-27. RS.1436329 RS.488351 2179/KOL/2014 AY 2010-11 DCIT, CIR-1, DURGAPUR REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. ELECTRONIC HOUSE, PAN: AABEE8684P , REP. BY NONE STATION ROAD, DURGAPUR, PIN:713201 RS.2083547 RS. 708405 4 4 2148/KOL/2014 AY 2010-11 DCIT, CIR-4(1), KOLKATA. REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. UNNAYAN BUILDERS PVT. LTD. PAN: AABCU0380P , REP. BY NONE 47/1K, HAZRA ROAD, 1 ST FLOOR, KOL- 19. RS. 1188500 RS. 404090 2035/KOL/2014 AY 2005-06 DCIT, CIR-32, KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR ESTATE OF LATE SWARAM PURI PAN: ARZPP6987H , REP. BY NONE ESTATE OF LATE SWARAN PURI, EXECUTOR SRI DEEPAK PURI, 87J, PARK STREET, KOLKATA-16. RS.6,82,833 RS. 2,32,163 2036/KOL/2014 AY 2010-11 ITO, WD-56(1), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR SHRI ANIL KR. NEVATIA PAN: ABPPN9564N , REP. BY NONE 18/1, M. D. ROAD, KOL-700007 RS. 1850000 RS.629000 2195/KOL/2014 AY 2009-10 ITO, WD-31(1), KOLKATA REP. BY SH. UDAY KR. SARDAR, JCIT, SR. DR M/S. SARAT JEWELS & CO. PAN: AARFS6807L, REP. BY SH. SUNIL KR. SURANA, CA 15A, J. L. NEHRU ROAD, KOLKATA-13. RS.1051082 RS. 273932 DATE OF HEARING: 29.12.2015 DATE OF PRONOUNCEMENT: 29.12.2015 ORDER PER SHRI MAHAVIR SINGH, JM: THESE APPEALS OF THE REVENUE ARISE OUT OF THE VARIO US ORDERS OF THE LEARNED CIT(A) AGAINST THE ORDERS OF ASSESSMENT FRAMED U/S 147 / 1 43(3) / 144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. AT THE OUTSET, IT IS SEEN THAT THE TAX EFFECT O N THE DISPUTED ADDITIONS BEFORE US IS LESS THAN RS. 10 LACS. AS THE TAX EFFECT IN ALL THESE APPEALS ARE LESS THAN RS 10 LACS (AS MENTIONED IN COLUMN NO. 6), THESE APPEALS ARE TAKEN UP TOGETHER AND DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 3. AFTER PERUSING THE MATERIALS AVAILABLE ON RECOR D, IN ALL THESE APPEALS, IT IS SEEN FROM THE RECORDS THAT THE TOTAL TAX EFFECT IN EACH OF THE AP PEALS, ON THE ADDITIONS DISPUTED BEFORE US IS BELOW THE TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 FOR PREFERRING APPEALS BEFORE TRIBUNAL BY THE REVENUE. IT WILL BE PERTINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCULAR NO. 21 / 2015 DATED 10 .12.2015:- 3. HENCEFORTH, APPEALS / SLPS SHALL NOT BE FILED I N CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER:- S.NO. APPEALS IN INCOME TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- 5 5 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERE NCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUC H TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEA L IS INTENDED TO BE FILED (HEREINAFTER REFERRED TO AS DISPUTED ISSUES). HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UN DER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EF FECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NO TIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM O F PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR , APPEAL, CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHA LL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN OTHER WORDS, HENCEFORTH, APPEALS CAN BE FILED ONLY WITH REFERENC E TO THE TAX EFFECT IN THE RELEVANT ASSESSMENT YEAR. HOWEVER, IN CASE OF A COMPOSITE ORDER OF AN Y HIGH COURT OR APPELLATE AUTHORITY, WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON I SSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEAL SHALL BE FILED IN RESPECT OF ALL SUCH ASSESS MENT YEARS EVEN IF THE TAX EFFECT IS LESS THAN TH E PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S), I F IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEEDS THE MONETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER / JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 8. ADVERSE JUDGEMENTS RELATING TO THE FOLLOWING ISS UES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LES S THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE ARE UNDER CHALLENGE, OR (B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR C IRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS / BANK ACCOUNTS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPE ALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN / NOT PRESSED. APPEALS BEFO RE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. WE FIND THAT INTENTION BEHIND THE CIRCULAR NO.21 /2015 DATED 10-12-2015 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- BY PASSAGE OF TIME, THE MONEY VALUE HAS GONE DOWN, THE COST OF LITIGATION EXPENSES HAS GONE UP, NUMBER OF ASSESSES ON THE FILES OF THE DE PARTMENT HAVE BEEN INCREASED AND CONSEQUENTLY, THE BURDEN ON THE DEPARTMENT IS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR COURTS ARE CHOKED WITH HU GE PENDENCY OF CASES. IN THIS VIEW 6 6 OF THE MATTER, THE CBDT HAS RIGHTLY TAKEN A DECISIO N TO REVISE THE MONETARY LIMITS IN TUNE WITH THE PRESENT VALUE OF MONEY AND WITH A VIEW TO REDUCE THE LITIGATION AND OFFERING RELIEF TO SMALL TAX PAYERS. THIS IS ALSO IN VIEW O F THE FACT THAT TIME AND ENERGY OF THE DEPARTMENT COULD BE USED MORE PRODUCTIVELY AND EFF ICIENTLY TO CATCH HOLD OF BIG FISHES, WHO IN TURN WOULD CONTRIBUTE MORE TO THE DEVELOPMEN T OF THE COUNTRY. 5. ON PERUSAL OF THE CIRCULAR NO. 21 / 2015 DATED 1 0.12.2015 AND THE MATERIALS AVAILABLE ON RECORD, LD. DR COULD NOT POINT OUT WHETHER THESE CA SES FALL UNDER ANY OF THE EXCEPTION AS PROVIDED IN THE CIRCULAR DESPITE SPECIFIC OPPORTUNI TY WAS GIVEN, DOES NOT FALL UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR, AS TH ESE ARE 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 C USTOMS VS INDIAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISIONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULARS 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 . HENCE, WE HOLD THAT THE APPEAL(S) OF THE REVENUE DE SERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.21 / 2015 DATED 10.12.2015. ACCORDINGLY, THESE BEING A LOW TAX EFFECT CASE, WE DISMISS ALL THE APPEALS OF REVENUE IN LIMI NE, AS UNADMITTED, WITHOUT GOING INTO THE MERITS OF THE CASE. 6. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AR E DISMISSED INLIMINE. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 29TH DECEMBER, 2015 JD. SR. P.S 7 7 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2 RESPONDENT 3. THE CIT(A), KOLKATA 4. 5. CIT KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .