DCIT-Central Circle-1, Mangalore V. Shri.E.Ramesh Upadhyaya(HUF), Puttur

ITA 1634/BANG/2016

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 2731 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 12-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI G MANJUNATH, ACCOUNTANT MEMBER ITA NO.1634/BANG/2016 - ASST. YEAR 2009-10 ITA NO.989 & 990 & 993 /BANG/2012 (ASST. YEARS 2001-02, 2002-03 & 2 005-06) THE DY. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, MANGALURU. . APPELLANT VS. SHRI E RAMESH UPADHYAYA (HUF), GURUKRIPA, RAMAKUNJ VILLAGE & POST, ALANGAR, PUTTUR. . RESPONDENT PAN AAAHE1267M CO NOS.30, 31 & 34/BANG/2013 (ASST. YEARS 2001-02, 2002-03 & 2005-06) (BY ASSESSEE) REVENUE BY : SHRI K.V ARAVIND, STANDING COUNS EL ASSESSEE BY : SHRI V SRINIVASAN, ADVOCATE DATE OF HEARING : 5-09-2018 DATE OF PRONOUNCEMENT : 15-10-2018 O R D E R PER BENCH : THESE APPEALS ARE PREFERRED BY THE REVENUE AGAINST THE RESPECTIVE ORDER OF THE CIT(A). ITA NOS.1634 /B/16 & 993, 989, 990/B/12 CO NOS.30, 31 & 34/B/13 2 2. DURING THE COURSE OF HEARING, IT WAS POINTED OUT THAT THE TAX EFFECT INVOLVED IN THESE APPEALS IS BELOW PRESCRIBED LIMIT . THEREFORE, THE SAME MAY BE DISMISSED. 3. AT THE OUTSET, IT IS OBSERVED THAT THE TAX EFFE CT INVOLVED IN THIS APPEAL IS BELOW RS.20 LAKHS. THE CBDT, WITH A VIEW TO REDUCE UNNECESSARY LITIGATION ON THEIR PART, HAS ISSUED A CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018, WHEREIN THEY HAVE REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE INCO ME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SUPREME COURT. INSOFAR A S THE TRIBUNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED THEREIN IS RS.20 LAKHS AND THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR I T NEED NOT PRESS THE SAME IF TAX EFFECT IS LESS THAN RS.20 LAKHS. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THEREIN IS APPLICABLE TO ALL P ENDING APPEALS, THOUGH THEY ARE FILED BY THE REVENUE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFIED THAT THE ASSESSING OFFICER HA S TO CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESP ECT OF THE DISPUTED ISSUE/S IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUE ARISES IN MORE THAN ONE YEAR(S), APP EAL(S) CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR(S) IN WHICH TAX EFF ECT IN RESPECT OF THE DISPUTED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED . IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS L ESS THAN THE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SA ME HAS TO BE WITHDRAWN FOR THAT YEAR, FOR WANT OF TAX EFFECT. H OWEVER, AN EXCEPTION IS MADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASSED BY THE ITA NOS.1634 /B/16 & 993, 989, 990/B/12 CO NOS.30, 31 & 34/B/13 3 FIRST APPELLATE AUTHORITY. IF IN ONE OF THE YEARS THE TAX EFFECT IS MORE THAN RS.20 LAKHS AND THE REVENUE DECIDES TO FILE AN APPEAL, 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.20 LAKHS. IT WAS ALSO CLARIFIED THAT MERELY BEC AUSE 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. 4. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLICA BLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, THE TAX EFFE CT ON THE ADDITION IN DISPUTE, WHICH WAS DELETED BY THE CIT(A) BY THE IMP UGNED ORDER IS INDISPUTABLY BELOW 20LAKHS. 5. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED SEC TION 268A OF THE INCOME TAX ACT, 1961, WHEREBY THE BOARD IS EMPOWERE D TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX AU THORITIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE F ILING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 11.07.2018, ISSUED BY THE CBDT IN EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTI ON (1) OF SECTION 268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HERE IN SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMEN TAL EPRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APP EAL IS LESS THAN THE PRESCRIBED LIMIT IN PARA-3 OF THE ABOVE CIRCULAR IS SUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEALS OF THE REVENUE. ITA NOS.1634 /B/16 & 993, 989, 990/B/12 CO NOS.30, 31 & 34/B/13 4 6. HOWEVER, THE REVENUE IS AT LIBERTY TO MOVE APPRO PRIATE APPLICATION/PETITION IN CASE IT IS FOUND THAT THE C ASE IS COVERED BY ONE OF THE EXCEPTION(S) CARVED OUT IN THE SAID CIRCULAR. 7. THE CROSS OBJECTIONS ARE PREFERRED BY THE ASSESS EE. 8. DURING THE COURSE OF HEARING, THE LD COUNSEL FOR THE ASSESSEE HAS CANDIDLY ADMITTED THAT HE HAS GOT THE RELIEF FROM T HE CIT(A) AND SINCE THE APPEALS OF THE REVENUE ARE DISMISSED ON ACCOUNT OF TAX EFFECT, THE CROSS-OBJECTIONS BECOMES INFRUCTUOUS. ACCORDINGLY, WE DISMISS THE CROSS-OBJECTIONS BEING INFRUCTUOUS. HENCE, APPEALS OF THE REVENUE AND CROSS- OBJECTIONS OF THE ASSESSEE ARE DISMISSED . 9. IN THE RESULT, THE APPEALS FILED BY THE REVENUE AND THE CROSS- OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH OCT, 2018 . SD/- SD/- (G MANJUNATH) (SUNI L KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE DATED : 15/10/2018 VMS ITA NOS.1634 /B/16 & 993, 989, 990/B/12 CO NOS.30, 31 & 34/B/13 5 COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER SR. PRIVA TE SECRETARY, ITAT, BANGALORE . ITA NOS.1634 /B/16 & 993, 989, 990/B/12 CO NOS.30, 31 & 34/B/13 6 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR. P. S ... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT.. 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..