Income TAx officer Ward-1(5), Davangere V. M/s Renukamba Credit Co-op Society Ltd , Davangere

ITA 1502/BANG/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5552 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 28-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NOS.1502/BANG/2017 (ASST. YEAR - 2012- 13) THE INCOME-TAX OFFICER, TDS WARD-1(5), DAVANGERE. . APPELLANT VS. M/S RENUKAMBA CREDIT CO-OP SOCIETY LTD., #933, IDIGA HOSTEL COMPLEX, P.B ROAD, VINOBANAGARA, DAVANGERE. . RESPONDENT APPELLANT BY : SHRI B.R RAMESH, ADDL. CIT RESPONDENT BY : SHRI SANDEEP, C.A DATE OF HEARING : 6-2-2018 DATE OF PRONOUNCEMENT : 7-2-2018 O R D E R PER SHRI JASON P BOAZ, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY REVENUE DIRECTED AGAINST THE ORDER COMMISSIONER OF INCOME-TAX (APPEALS), DAVANGERE DA TED 26/3/2015 FOR THE ASSESSMENT YEARS 2012-13. 2. WHEN THE APPEAL WAS TAKEN UP FOR HEARING LD. COU NSEL FOR THE ASSESSEE POINTED OUT TO THE LD DR THAT TAX EFFECT I NVOLVED IN THIS APPEAL LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSES SMENT YEAR I.E IT ITA NOS. 1502/B/17 2 WAS RS.1,46,840/- AND BY VIRTUE OF CIRCULAR NO.21/2 015 DATED 10.12.2015 IS BELOW THE LIMITS LAID DOWN FOR FILING APPEALS BEFORE THIS TRIBUNAL. THE LD DR HAS NOT DISPUTED THE FACT THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LAKHS. 3. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTENT IONS. PARAS 3, 4 & 10 OF THE CIRCULAR NO.21/2015 (SUPRA) IS REPROD UCED HEREUNDER:- 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS 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/- --------------------------------------------------- --------------------- 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, AX EFFECT' MEANS THE DIFFEREN CE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCO ME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED ITA NOS. 1502/B/17 3 (HEREINAFTER REFERRED TO AS 'DISPUTED ISSUES'). HOW EVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT W HERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUT E, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASE S WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, TH E TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDIT IONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QU ANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEA LED AGAINST. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIB UNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARA 3 ABOVE MAY BE WITHDRAWN NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' 4. THE TAX EFFECT ON THE ISSUE THAT IS DISPUTED BY THE REVENUE IS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT Y EAR I.E RS.1,46,840/-. NEITHER, THE PROVISIONS OF THE ACT OR RULES NOR THE LEGALITY OR VIRES OF ANY BOARD ORDER, NOTIFICATION , INSTRUCTION OR CIRCULAR WAS AN ISSUE BEFORE THE LOWER AUTHORITIES. ADDITION GIVING RISE TO THE APPEALS DOES NOT RELATE TO ANY UNDISCLO SED FOREIGN ASSETS/BANK ACCOUNTS. THUS WE FIND THAT THE CIRCUL AR NO.21/2015 (SUPRA) IS SQUARELY APPLICABLE IN THIS CASE. ITA NOS. 1502/B/17 4 5. IN THE RESULT, REVENUES APPEALS FOR ASST. YEARS 2012-13 IS DISMISSED AS NOT MAINTAINABLE. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH FEBRUARY, 2018 . SD/- SD/- (LALIET KUMAR) ( JASON P BOAZ) JUDICIAL MEMBER ACCOUNTANT MEM BER BANGALORE DATED : 7/2/2018 VMS COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER SR. PRIVATE SECRETAR Y, ITAT, BANGALORE.