ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 2(1), RAIPUR V. PSA CONSTRUCTION, RAIPUR

ITA 146/RPR/2018

• Counselvise Citation: [NaN] 107 COUNSELVISE.COM (IT) 1810 (ITAT-RAIPUR)
• Duration Of Justice: 3 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 20-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 143(3); 92; 13

Judgement Text

आयकर अपीलȣय अͬधकरण Ûयायपीठ रायप ु र मɅ। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR (Through Virtual Court) BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER AND SHRI RATHOD KAMLESH JAYANTBHAI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No. 146/RPR/2018 Ǔनधा[रण वष[ / Assessment Year : 2015-16 The Assistant Commissioner of Income Tax, Circle-2(1), Raipur (C.G.) .......अपीलाथȸ / Appellant बनाम / V/s. PSA Construction 24B, South Avenue, Choubey Colony, Raipur (C.G.) PAN : AAHFP3578K ......Ĥ×यथȸ / Respondent Assessee by : Shri Veekaas S Sharma, AR Revenue by : Shri Debashis Lahiri, DR स ु नवाई कȧ तारȣख / Date of Hearing : 01.06.2022 घोषणा कȧ तारȣख / Date of Pronouncement : 01.06.2022 2 ACIT, Circle-2(1) Vs. M/s. PSA Construction ITA No. 146/RPR/2018 आदेश / ORDER PER RAVISH SOOD, JM: The present appeal filed by the Revenue is directed against the order passed by the CIT(Appeals)-I, Raipur (C.G.) dated 27.04.2018, which in turn arises from the order passed by the A.O under Sec. 143(3) of the Income-tax Act, 1961 (for short ‘the Act’) dated 18.12.2017, for assessment year 2015-16. 2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation. 3. CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of 3 ACIT, Circle-2(1) Vs. M/s. PSA Construction ITA No. 146/RPR/2018 interest is the issue under dispute, the amount of interest shall be the ‘tax effect’. In cases where returned loss is reduced or assessed as income, the ‘tax effect’ would include notional tax on disputed additions. In case of penalty order, the ‘tax effect’ will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.” 4. As a step towards further management of litigation, CBDT vide Circular No. 17/2019, dated 08.08.2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-. 5. In the instant appeal filed by the Department, it was averred by the ld. A.R that the ‘tax effect’ therein involved was below the monetary limit of Rs.50,00,000/-. The said fact was brought to the notice of the ld. Departmental Representative (for short ‘D.R’) who did not controvert the same. 6. With the above observations the appeal involving a ‘tax effect’ of less than Rs.50,00,000/- is dismissed. At the same time, a liberty is given to revenue to seek recall of the appeal, if at a later stage, it is found that the matter is covered by any 4 ACIT, Circle-2(1) Vs. M/s. PSA Construction ITA No. 146/RPR/2018 exceptions provided in any of the circular or in case the tax effect in the appeal exceeds the prescribed monetary limit. 7. In the result, appeal of the Revenue is dismissed in terms of our aforesaid observations. Order pronounced in open court on 01 st day of June, 2022. Sd/- Sd/- RATHOD KAMLESH JAYANTBHAI RAVISH SOOD (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायप ु र/ RAIPUR ; Ǒदनांक / Dated : 01 st June, 2022 SB आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The CIT(Appeals)-1, Raipur (C.G) 4. The Pr. CIT-1, Raipur (C.G) 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण,रायप ु र बɅच, रायप ु र / DR, ITAT, Raipur Bench, Raipur. 6. गाड[ फ़ाइल / Guard File. आदेशान ु सार / BY ORDER, // True Copy // Ǔनजी सͬचव / Private Secretary आयकर अपीलȣय अͬधकरण, रायप ु र / ITAT, Raipur. 5 ACIT, Circle-2(1) Vs. M/s. PSA Construction ITA No. 146/RPR/2018 Date 1 Draft dictated on 01.06.2022 Sr.PS/PS 2 Draft placed before author 01.06.2022 Sr.PS/PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order