ITO, Hyderabad V. M/s Chakkilam Constructions P.Ltd., Hyderabad

ITA 1614/HYD/2008

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98813 (ITAT-HYDERABAD)
• Duration Of Justice: 7 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-12-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 30-10-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: M V JOSHI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.1613/HYD/2008 : ASSESSMENT YEARS 2002- 03 ITA NO.1614/HYD/2008 : ASSESSMENT YEARS 2003- 04 INCOME TAX OFFICER WARD 14(1), HYDERABAD V/S M/S. CHAKKILAM CONSTRUCTIONS PVT. LTD., HYDERABAD . (TAN - HYDC0 0916 G ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.KURMI NAIDU DR RESPONDENT BY : SHRI M.V.JOSHI DATE OF HEARING 16.12.2015 DATE OF PRONOUNCEMENT 16.12.2015 O R D E R PER D.MANMOHAN, VICE PRESIDENT : THESE APPEALS ARE FILED BY THE REVENUE. VIDE CIR CULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, BEARING F.NO.279/- MISC.142/2007-ITI(PT), THE CBDT, FUNCTIONING UNDER THE MINISTRY OF FINANCE, WITH A VIEW TO REDUCE UNNECESSARY LITIGAT ION ON THEIR PART, HAS ISSUED A CIRCULAR, WHEREIN THEY HAVE REVISED TH E MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT SPECIFIED THAT WHERE THE TAX EFFECT DOES NOT E XCEED THE MONETARY LIMIT SPECIFIED THEREIN, THE CONCERNED AUT HORITY HAS TO WITHDRAW ITS APPEAL OR IT NEED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THEREIN IS APPLICABLE TO ALL PENDING APPEALS, THOUGH THEY ARE FILED BY THE REVEN UE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFI ED THAT THE ASSESSING OFFICER HAS TO CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUE(S) IN THE CAS E OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUE ARISES IN MORE THAN ITA NO.1613-14/HYD/2008 M/S.CHAKKILAM CONSTRUCTIONS PVT. LTD., HYDERABAD . 2 ONE YEAR(S), APPEAL(S) CAN BE FILED IN RESPECT OF S UCH ASSESSMENT YEAR(S) IN WHICH TAX EFFECT IN RESPECT OF THE DISPU TED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED, IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN THE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME HAS TO BE WITHDR AWN FOR THAT YEAR, FOR WANT OF TAX EFFECT. HOWEVER, AN EXCEPTION IS M ADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASSED BY THE FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF THE YEARS THE TAX EFFECT IS MORE THAN RS.10 LAKHS AND THE REVENUE DECIDES TO FILE AN APPE AL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER ALSO, REVENUE IS ELIGIBLE TO FILE APPEAL, EVEN THOUGH THE TAX EFFECT IN EACH OF THOSE YEARS IS LESS THAN RS.10 LAKHS. IT AS ALSO CLARIFIED HAT MERELY BECAU SE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT COME IN THE WAY OF THE DEPARTMENT IN FILING APPEAL FOR OTHER YEARS(S), AND IT DOES NOT MEAN THAT THE DEPARTMENT HAS ACQUIESCED THE ISSUE. 3. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLIC ABLE TO ALL PENDING APPEALS. IN THE CASE OF THE ASSESSEE HEREI N, LEARNED COUNSEL SUBMITTED THAT REVENUE EFFECT IN TERMS OF S.201(1) AND 201(1A) TOGETHER IS RS.7,10,549 FOR ASSESSMENT YEAR 2002-03 AND RS.3,54,540 FOR ASSESSMENT YEAR 2003-04. IN OTHER WORDS, IN NO NE OF THE YEARS, THE TAX EFFECT IS MORE THAN RS.10 LAKHS, EVEN THOUG H THE FIRST APPELLATE AUTHORITY HAS PASSED A COMBINED ORDER. 4. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S. 268A OF THE INCOME TAX ACT,1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX A UTHORITIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 10.12.2015, ISSUED BY THE CBDT IN EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTIO N (1) OF S.268A, WE ARE OF THE VIEW THAT THE APPEALS FILED HEREIN SHOUL D NOT HAVE BEEN ITA NO.1613-14/HYD/2008 M/S.CHAKKILAM CONSTRUCTIONS PVT. LTD., HYDERABAD . 3 PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL RE PRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN EACH OF THESE APPEALS IS LESS THAN THE LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CI RCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CA SE, WE DISMISS THE APPEALS OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (IN TURI RAMA RAO) (D.MANMOHAN) ACCOUNTANT MEMBER. VICE PRESIDENT DT/- 16 TH DECEMBER, 2015 COPY FORWARDED TO: 1. M/S. CHAKKILAM CONSTRUCTIONS PVT. LTD., 6 - 3 - 883/9, PANJAGUTTA CROSS ROADS, HYDERABAD 500 082 2. INCOME TAX OFFICER WAD 14(1), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) II, HYDERABAD COMMISSIONER OF INCOME-TAX(TDS), HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.