ITO., Ward-5(3), Hyderabad V. M/s Pal Wines, Hyderabad

ITA 1698/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98812 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 05-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SITHARAM
• Assessee Lawyers: P VINOD
• Keywords: Tax effect
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.1698/HYD/2014 ASSESSMENT YEAR 2007-2008 THE INCOME TAX OFFICER, WARD-5 (3), HYDERABAD. VS., M/S. PAL WINES, HYDERABAD. PAN AACFP1593P (APPELLANT) (RESPONDENT) FOR REVENUE : MR. SITHARAM FOR ASSESSEE : MR. P. VINOD DATE OF HEARING : 16.12.2015 DATE OF PRONOUNCEMENT : 16.12.2015 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y. 2007-08. IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORD ER OF THE LD. CIT(A) IN HOLDING THAT THE RE-ASSESSMENT PROCEEDINGS INITIATED UNDER SECTION 147 CANNOT BE SUSTAINED. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, MR. P. VINOD, SUBMITTED THAT THE TAX EFFE CT IN THIS APPEAL IS LESS THAN RS. 10 LAKHS AND THEREFORE , REVENUES APPEAL IS LIABLE TO BE DISMISSED IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015. THE LD. COUNSEL FOR THE ASSESSEE, HAS ALSO FILED THE COPY O F REVISED GROUNDS OF APPEAL FILED BY THE REVENUE TO DEMONSTRA TE 2 ITA.NO.1698/HYD/2014 M/S. PAL WINES, HYDERABAD. THAT THE ADDITIONS DELETED BY THE LD. CIT(A), AGAIN ST WHICH, THE REVENUE IS IN APPEAL BEFORE US, IS SHOWN TO BE RS.23,33,270 AND RS.13,500 RESPECTIVELY. ON GOING THROUGH THE ASSESSMENT ORDER ALSO WE FIND THAT THE TOTAL INCOME ASSESSED BY THE A.O. ITSELF IS AT RS.22,92,5 50 AFTER TAKING INTO CONSIDERATION THE RETURNED INCOME OF TH E ASSESSEE AT RS.12,050. THEREFORE, WE ARE SATISFIED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. 3. THE CBDT VIDE CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE THE TRIBUNAL, HONBLE HIGH COURT AND HONBLE SUPREME COURT RESPECTIVELY. THE MONETAR Y LIMIT FIXED FOR FILING OF APPEAL BEFORE THE TRIBUNA L IS RS.10 LAKHS AND IT IS ALSO CLARIFIED THAT THE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSE SSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE ON SUCH TOTAL INCOME BEING REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH, APPEAL IS INTE NDED TO BE FILED AND ALSO THAT THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITS ELF IS IN DISPUTE. PARA-10 OF THE INSTRUCTION ALSO CLARIFIES THAT THE INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING A PPEALS AND APPEALS TO BE FILED HENCEFORTH IN THE HIGH COUR TS/ TRIBUNAL AND HAS DIRECTED THE DEPARTMENT TO EITHER WITHDRAW OR NOT PRESS THE APPEALS BELOW THE SPECIFI ED TAX LIMITS. DULY TAKING NOTE OF THE CBDT CIRCULAR NO.21 /2015 DATED 10 TH DECEMBER, 2015, WE DISMISS THE APPEAL OF THE REVENUE. 3 ITA.NO.1698/HYD/2014 M/S. PAL WINES, HYDERABAD. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 16.12.2015. SD/- SD/- (S. RIFAUR RAHMAN) (SMT. P. MADHAVI DEVI) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 16 TH DECEMBER, 2015 VBP/- COPY TO 1. THE INCOME TAX OFFICER, WARD 5(3), 6 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. M/S. PAL WINES, 5-9-93, CHAPAL ROAD, HYDERABAD. 3. CIT(A) - V, HYDERABAD. 4. CIT - IV, HYDERABAD. 5. D.R. I.T.A.T. A BENCH, HYDERABAD. 6. GUARD FILE