Income Tax Officer, Bangalore V. Sri.C.K.Nandigonnanavar, Haveri

ITA 1648/BANG/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5577 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 14-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SURYAVAMSHI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, BENGALURU BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.1648/BANG/2016 (ASSESSMENT YEAR: 2008-09) INCOME-TAX OFFICER, WARD-1, HAVERI. VS. APPELLANT SHRI C.K.NANDIGONNANAVAR, PROP. SANJAY TRADING CO. A/P: GUTTAL, DIST. HAVERI. PAN:ADMPN 3857 H RESPONDENT APPELLANT BY : SHRI VIKRAM SURYAVAMSHI, ACIT(DR) RESPONDENT BY : SHRI RAVISHANKAR, ADVOCATE. DATE OF HEARING : 30/01/2019 DATE OF PRONOUNCEMENT: 30/01/2019 O R D E R PER PAVAN KUMAR GADALE, JM : THE REVENUE HAS FILED THE APPEAL AGAINST THE ORDER OF THE LEARNED CIT(A), DAVANGERE, IN ITA NO.CIT(A)347/HBL/DVG/2010 -11 DATED 27/05/2016 FOR THE ASSESSMENT YEAR 2008-09. 2. AT THE OUTSET, IT IS OBSERVED THAT THE TA X EFFECT 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 IS RS.20 LA KHS. THE CBDT SPECIFIED THAT WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT ITA NO.1648/BANG/2016 PAGE 2 OF 3 SPECIFIED THEREIN, THE CONCERNED AUTHORITY HAS TO W ITHDRAW ITS APPEAL OR IT NEED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THEREIN IS APPLICABLE TO ALL PENDING APPE ALS, THOUGH THEY ARE FILED BY THE REVENUE PRIOR TO THE ISSUANCE OF THE S AID CIRCULAR. IT WAS ALSO CLARIFIED THAT THE ASSESSING OFFICER HAS TO CA LCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT 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 EFFECT IN RESPECT OF THE DISPUTED ISSUE EXCEEDS THE MONETARY LIMIT SPECI FIED. IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX E FFECT IS LESS THAN THE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME 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 FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF T HE YEARS THE TAX EFFECT IS MORE THAN RS.20 LAKHS AND THE REVENUE DECIDES TO FI LE AN APPEAL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER AL SO, 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 MEREL Y BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT CO ME 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 AP PLICABLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, THE TAX EFFECT ON TH E ADDITION IN DISPUTE, WHICH WAS DELETED BY THE CIT(A) BY THE IMPUGNED ORD ER IS INDISPUTABLY BELOW 20 LAKHS. 4. THE LEGISLATURE IN ITS WISDOM HAS INTRODUC ED SECTION 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 SUBSECTIO N (1) OF SECTION 268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHO ULD NOT HAVE BEEN ITA NO.1648/BANG/2016 PAGE 3 OF 3 PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL RE PRESENTATIVE 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 AS WITHDRAWN/NOT PRESSED, AS PRONOUN CED IN THE OPEN COURT. 5. HOWEVER, THE REVENUE IS AT LIBERTY TO MOVE AP PROPRIATE APPLICATION/PETITION IN CASE IT IS FOUND THAT THE C ASE IS COVERED BY ONE OF THE EXCEPTIONS CARVED OUT IN THE SAID CIRCULAR. 6. IN THE RESULT, THE REVENUES APPEAL DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JANUARY, 2019. SD/- SD/- ( CHANDRA POOJARI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : BENGALURU D A T E : 30/01/2019. SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)- 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE