ACIT, Ludhiana V. M/s Kishan Chand & Co, Ludhiana

ITA 1468/CHANDI/1992

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9845 (ITAT-CHANDIGARH)
• Duration Of Justice: 23 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 1989-1990
• Appeal Filed On: 03-08-1992
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGHDR
• Assessee Lawyers: I S RATTA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1468/CHD/1992 ASSESSMENT YEAR: 1989-90 THE ACIT, VS M/S KISHAN CHAND & CO. CENTRAL CIRCLE-I, OIL INDUSTRY, LUDHIANA. LUDHIANA. PAN: ---------- (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH,D R RESPONDENT BY : SHRI I.S.RATTA DATE OF HEARING : 23.06.2016 DATE OF PRONOUNCEMENT : 23.06.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST T HE ORDER OF LD. CIT(APPEALS) CENTRAL, LUDHIANA DATED 2 5.05.1992 FOR ASSESSMENT YEAR 1989-90. 2. THE RECORD REVEALED THAT EARLIER, THIS APPEAL WA S DECIDED BY ITAT CHANDIGARH BENCH B VIDE ORDER DATED 10.04 .2000. THIS ORDER FURTHER REVEALED THAT TRIBUNAL DECIDED T HE FOLLOWING EFFECTIVE GROUND : THE LD.CIT(A) (C), LUDHIANA HAS ERRED BOTH IN LAW AND ON FACTS IN ALLOWING RELIEF OF RS. 10,08,789/- OUT OF ADDITION OF RS. 12,60,500/- MADE ON ACCOUNT OF INTEREST. 2 2(I) THE TRIBUNAL IN PARA 18 OF THE ORDER DATED 10. 04.2000 ALLOWED THE DEPARTMENTAL APPEAL AND THE ORDER OF LD . CIT(APPEALS) ALLOWING A RELIEF OF RS. 10,08,789/- W AS SET ASIDE AND THE ORDER OF THE ASSESSING OFFICER IN MAKING AD DITION OF RS. 12,60,500/- WAS UPHELD. 3. THE ASSESSEE PREFERRED APPEAL BEFORE HON'BLE PUN JAB & HARYANA HIGH COURT AGAINST THE ORDER OF THE TRIBUNA L DATED 10.04.2000 IN ITA 11 OF 2001. HON'BLE HIGH COURT V IDE JUDGEMENT DATED 19.01.2015 SET ASIDE THE ORDER OF T HE TRIBUNAL DATED 10.04.2000 AND REMITTED THE MATTER TO THE TRI BUNAL FOR ADJUDICATION AFRESH AND IN ACCORDANCE WITH LAW. AC CORDINGLY, THE DEPARTMENTAL APPEAL WAS RE-FIXED FOR ADJUDICATI ON AFRESH. 4. THE ABOVE FACTS, THEREFORE, MADE IT CLEAR THAT T HE DEPARTMENTAL APPEAL SHALL HAVE TO BE DECIDED WITH R EGARD TO THE MATTER IN WHICH LD. CIT(APPEALS) ALLOWED THE RELIEF OF RS. 10,08,789/- OUT OF ADDITION OF RS. 12,60,500/- MADE ON ACCOUNT OF INTEREST. THUS, IN THE DEPARTMENTAL APP EAL, THE EFFECTIVE GROUND OF APPEAL ON WHICH THE TAX EFFECT IS ADMITTEDLY BELOW RS. 10 LACS. 5. ACCORDING TO CIRCULAR NO. 21/2015 DATED 10.12.20 15, THE CBDT IN SUPERCESSION OF EARLIER INSTRUCTIONS HAS DI RECTED THAT DEPARTMENTS APPEALS BEFORE ITAT SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMIT OF RS. 10 LACS. THE TAX WILL NOT INCLUDE ANY INTEREST THE REON. IT IS FURTHER CLARIFIED THAT IF IN THE CASE OF AN ASSESSE E, DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPE AL CAN BE 3 FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS I N WHICH THE TAX EFFECT IN RESPECT OF DISPUTED ISSUES EXCEEDS TH E MONETARY LIMIT SO SPECIFIED. THIS INSTRUCTION WILL APPLY RE TROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH BEFORE THE TRIBUNAL. THE PENDING APPEALS BELOW THE SPECIFIED T AX LIMIT MAY BE WITHDRAWN/NOT PRESSED. 6. ADMITTEDLY, IN THE DEPARTMENTAL APPEAL, THE TAX EFFECT IS LESS THAN RS. 10 LACS, THEREFORE, DEPARTMENTAL APPE AL IS NOT MAINTAINABLE. THE LD. CIT(APPEALS) DECIDED THE ISS UE IN DEPARTMENTAL APPEAL ON FACTS AND THE CASE OF THE RE VENUE WOULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE ABOVE CI RCULAR. 7. IN VIEW OF THE ABOVE, LD. DR STATED THAT SINCE DEPARTMENTAL APPEAL IS FILED AGAINST THE CBDT INSTR UCTIONS, THEREFORE, HE WOULD NOT BE PRESSING DEPARTMENTAL AP PEAL. THEREFORE, THE ABOVE DEPARTMENTAL APPEAL IS DISMISS ED BEING NOT PRESSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH S AINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23 RD JUNE, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD