ITO(Exemption), Ward - 1(2), Kolkata , Kolkata V. Bandel Auxilium Educational Society, Hooghly

ITA 1580/KOL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2058 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 04-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C J SINGH JCITSRDR
• Assessee Lawyers: TAPASH GAN CHOUDHURY; SUBHASIS GHOSH
• Keywords: Tax effect
• Section: 143(3); 201

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 1578 TO 1580 / KOL / 2017 ASSESSMENT YEARS :2010-11 TO 2012-13 INCOME TAX OFFICER (EXEMPTION), WARD-1(2), 10, B,MIDDLETON ROW, KOLATA-700 071 V/S . BENDEL AUXILIUM EDUCATION SOCIETY, P.O. BANDEL, DIST. HOOGLY [ PAN NO.AAATB 8373 R ] /APPELLANT .. / RESPONDENT /BY ASSESSEE SHRI TAPASH GAN CHOUDHURY, ADVOCATE & SHRI SUBHASIS GHOSH, ADVOCATE /BY REVENUE SHRI C.J. SINGH, JCIT, SR-DR /DATE OF HEARING 02-09-2019 /DATE OF PRONOUNCEMENT 09-09-2019 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THESE THREE REVENUES APPEALS FOR ASSESSMENT YEAR( S) 2010-11, 2011- 12 & 2012-13 ARISE AGAINST THE COMMISSIONER OF INCO ME TAX (APPEALS)-25 KOLKATAS COMMON ORDER DATED 12.04.2017 PASSED IN C ASE NOS. CIT(A), KOLKATA-25/10123/2013-14, 10078/2014-15, 10013/2015 -16 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. IT EMERGES AT THE OUTSET THAT THE REVENUE HAS RA ISED AN IDENTICAL SOLE ISSUE INVOLVED IN ASSESSMENT YEAR(S) 2010-11 TO 201 2-13 AMOUNTING TO 84,00,000, 84,00,000/- & 41 LAC; RESPECTIVELY. THE TAX EFFECT (ASSESSMENT YEAR-WISE) IN ALL THESE CASE(S) ON THE DISPUTED ADD ITIONS BEFORE US IS LESS ITA NO.1579-1580/KOL/2017 A.YS 10-11 TO 1 2-13 ITO (EX) WD-1(2), KOL. VS. BANDEL AUXILIUM EDUCAT ION SOCIETY PAGE 2 THAN RS. 50 LACS IN CASES I.E. LESS THAN THE PRESCR IBED REVISED THRESHOLD LIMIT IN CBDTS LATEST CIRCULAR NO17/2019 DATED 08.08.201 9. IT WILL BE PERTINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCULAR AS FOLLOWS:- 2 . AS A STEP TOWARD FURTHER MANAGEMENT OF LITIGATION , IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEAL S IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50,00,000 2. BEFORE HIGH COURT 1,00,00,000 3. BEFORE SUPREME COURT 2,00,00,000 3.1 WE FIND THAT INTENTION BEHIND THE CIRCULAR NO17 /2019 DATED 08.08.2019 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE :- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS--VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEAR IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY TH E FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES IN THE CASE OF EVERY ASSESSEE. IF, THE CASE OF AN ASSESSEE, THE DI SPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FIL ED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFE CT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIE D IN PARA 3 . NO. APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMI T SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE AS SESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENTS YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE A SSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 3.2. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DATED 0 8.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, WE DO NOT SEE THESE CASE(S) FALLING UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR PER SE . WE ALSO FIND THAT THIS CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONET ARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AS WELL. H ONBLE APEX COURT IN COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION L TD REPORTED IN 267 ITR ITA NO.1579-1580/KOL/2017 A.YS 10-11 TO 1 2-13 ITO (EX) WD-1(2), KOL. VS. BANDEL AUXILIUM EDUCAT ION SOCIETY PAGE 3 272 (SC) HAS SETTLED THE LAW THAT CBDTS CIRCULARS ARE VERY MUCH BINDING ON REVENUE AUTHORITIES. WE THUS HOLD THAT THIS REVENUE S APPEAL(S) RAISING IDENTICAL SOLE ISSUE OF 84,00,000/-, 84,00,000/- AND 41 LAC/- DESERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT. WE MAKE IT CL EAR THAT IT SHALL VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RECTIFICATIO N IN CASE IT IS FOUND THAT ANY OF THE APPEAL(S) INVOLVE OPERATIONS OF EXCEPTIO N CLAUSES IN THE TAX EFFECT CIRCULAR AS PER LAW. 4. THESE REVENUES APPEALS ARE DISMISSED FOR INVOLV ING LOWER THAN THE PRESCRIBED MINIMUM TAX EFFECT. A COPY OF THIS ORDER BE PLACED IN THE ALL CASE FILES . ORDER PRONOUNCED IN THE OPEN COURT 06 /09/2019 SD/- SD/- ( ) (( ) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP )- 06 / 09 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /ASSESSEE-BANDEL AUXILIUM EDUCATION SOCIETY P.O. BA NDEL, DIST. HOOGHLY 2. /REVENUE-ITO(EXEMPTION), WD-1(2), 10B, MIDDLETON RO W, KOLKATA-71 3. 4 5 / CONCERNED CIT KOLKATA 4. 5- / CIT (A) KOLKATA 5. 8 ((4, 4, / DR, ITAT, KOLKATA 6. = / GUARD FILE. BY ORDER/ , /TRUE COPY/ 4,