ITO, Ward-1(1), Jalpaiguri, Jalpaiguri V. M/s Bandhu Multipurpose Cold Storage Pvt. Ltd., Jalpaiguri

ITA 1507/KOL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1622 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 1 month(s) 18 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: 18-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHUR Y
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENC H KOLKATA BEFORE SHRI A.T. VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.1507/KOL/2016 ( / ASSESSMENT YEAR:2014-15) ITO, WARD-1(1), JALPAIGURI VS. M/S BANDHU MULTIPURPOSE COLD STORAGE PVT. LTD. VILLAGE-TALUKETRY, FALAKATA, JALPAIGURI-735211. ./ ./PAN/GIR NO.: AACCB 5580 D (ASSESSEE) .. (REVENUE) ASSESSEE BY :SHRI ROBIN CHOUDHURY, ADDL. CIT (DR) RESPONDENT BY : SHRI SUBASH AGARWAL, ADVOCATE / DATE OF HEARING : 16/07/2019 /DATE OF PRONOUNCEMENT : 06/09/2019 / O R DE R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE REVENUE, PERTA INING TO ASSESSMENT YEAR 2012-13, IS DIRECTED AGAINST THE ORDER PASSED B Y THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-JALPAIGURI, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) DATED 31/12/2015. 2. THIS APPEAL OF THE REVENUE WAS HEARD BY THIS BEN CH ON DATED 16.07.2019 ON MERITS. LATER ON, WE NOTICED THAT CBDT ISSUED CIRCU LAR NO. 17/2019, DATED 08.08.2019, WHEREIN THE CBDT HAS FURTHER ENHANCED T HE MONETARY LIMITS FOR FILING APPEALS BY THE REVENUE BEFORE TRIBUNAL, HIGH COURT AND SUPREME COURT WHICH IS APPLICABLE WITH RETROSPECTIVE EFFECT. WE NOTE THAT IN THIS REVENUE APPEAL THE TAX EFFECT IS LESS THAN RS. 50,00,000/- THEREFORE, THE ORDER IS BEING PASSED IN PURSUANCE OF CIRCULAR NO. 17/2019 DATED 08.08.2019. M/S BANDHU MULTIPURPOSE COLD STORAGE PVT. LTD. ITA NO.1507/KOL/2016 ASSESSMENT YEAR:2012-13 P PP PA AA AG GG GE EE E | || | 2 22 2 3. 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 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 THE PRESENT CASE, THE DISPUTED ADDITION IS RS . 64,74,959/-. SO, THE TAX EFFECT IN THIS APPEAL BY THE REVENUE IS LESS THAN RS.50,00,00 0/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 13.09.2017 AND WAS WIT HIN THE MONETARY LIMIT IN THE FORM OF TAX EFFECT FOR FILING APPEALS BEFORE TRIBUN AL, IN VIEW OF THE RECENT CIRCULAR OF CBDT, EVEN SUCH APPEALS WILL BE GOVERNED BY THE NEW MONETARY LIMITS LAID DOWN IN THE CBDT CIRCULAR NO.17/2019 REFERRED TO AB OVE. 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 BANDHU MULTIPURPOSE COLD STORAGE PVT. LTD. ITA NO.1507/KOL/2016 ASSESSMENT YEAR:2012-13 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/- ( A.T. VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 06/09/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. ITO, WARD-1(1), JALPAIGURI 2. M/S BANDHU MULTIPURPOSE COLD STORAGE PVT. 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