DCIT, CORPORATE CIRCLE - 2 (1), CHENNAI V. SMT. RAMYA BHAARAT, CHENNAI

ITA 1758/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5749 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 201; 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & S HRI S.JAYARAMAN , ACCOUNTANT MEMBER ./ I.T.A.NO.1538/CHNY/2016 / ASSESSMENT YEAR :2007-08 JOINT COMMISSIONER OF INCOME TAX (OSD), CORPORATE CIRCLE-1(2), CHENNAI 600 034. VS. M/S.BHARATHIRAJAA HOSPITAL & RESEARCH CENTRE PVT LTD ., 20,G.N.CHETTY ROAD, T.NAGAR,CHENNAI 600 017. [PAN AACCB 2146 F ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY: MR.ARUNRAJ, JCIT,D.R !' /RESPONDENT BY: MR.N.ARJUNRAJ,C.A FOR S.SRIDHAR ./ I.T.A.NO.1758/CHNY/2019 / ASSESSMENT YEAR : 2015-16 DEPUTY COMMISSIONER OF INCOME TAX , CORPORATE CIRCLE-2(1), CHENNAI 600 034 VS. SMT.RA MYA BHAARAT , 363,FIRST SOUTH MAIN STREET, SREE KAALEESWARA NAGAR, NEELANKARAI,CHENNAI 600 115. [PAN AOAPB 2648 K ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY: MR.ARUNRAJ, JCIT,D.R !' /RESPONDENT BY: MR.N.ARJUNRAJ,C.A FOR S.SRIDHAR ITA NO.1538/CHNY/16 ITA NO.1758/CHNY/19 ITA NO.1760/CHNY/19 TAX EFFECT CASES < RS.50 LAKHS :- 2 -: ./ I.T.A.NO.1760/CHNY/2019 / ASSESSMENT YEAR :2014-15 DEPUTY COMMISSIONER OF INCOME TAX , CORPORATE CIRCLE-1(1), CHENNAI 600 034 VS. M/S.ARCHIT BUI LDERS PVT LTD ., G-78,ANNA NAGAR EAST, CHENNAI 600 102. [PAN AABCA 4151 G ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.ARUNRAJ, JCIT,D.R !' /RESPONDENT BY : NONE & / DATE OF HEARING : 25 - 09 - 201 9 & / DATE OF PRONOUNCEMENT : 25 - 09 - 201 9 / O R D E R PER BENCH: THESE THREE APPEALS ARE FILED BY VARIOUS ASSESSING OFFICERS, ALL THESE APPEALS CALL INTO QUESTION CORR ECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONER S OF INCOME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS.50,00,000/- IN EAC H OF THESE APPEALS. 2. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC .142/2007- ITJ(PT) DATED 8TH AUGUST, 2019, THE INCOME TAX DEP ARTMENT HAS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEA LS AGAINST THE DECISIONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, ITA NO.1538/CHNY/16 ITA NO.1758/CHNY/19 ITA NO.1760/CHNY/19 TAX EFFECT CASES < RS.50 LAKHS :- 3 -: WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIM ITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS , THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST THE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OVERALL TAX EFFECT, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS IN DISPUTE, IS RS 50 ,00,000 OR LESS. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE CONCESSION BY THIS CBDT CIRCULAR, ALL THESE APPEALS MUST BE D ISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRUCTUOUS. 4. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMIT S AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DI SPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING A PPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 5. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STA NDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO. 3/2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR . THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8THAUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF ITA NO.1538/CHNY/16 ITA NO.1758/CHNY/19 ITA NO.1760/CHNY/19 TAX EFFECT CASES < RS.50 LAKHS :- 4 -: APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THR OUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D 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. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY TH E FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPEC IFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN A SSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA-3. FURTHER, EVEN IN THE CAS E OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHIC H INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED I N RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CAS E WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE A SSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. ITA NO.1538/CHNY/16 ITA NO.1758/CHNY/19 ITA NO.1760/CHNY/19 TAX EFFECT CASES < RS.50 LAKHS :- 5 -: 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCU LAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CRO SS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTI VELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 AB OVE MAY BE WITHDRAWN/ NOT PRESSED. 7. THE HONBLE SUPREME COURT IN THE CASE OF THE C OMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., IN SLP NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)T MI 811(SC) HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.0 8.2019 HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LESS THAN RS.2/- CRORES, GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT, WE SEE NO REASON TO INTERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITION IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN . 8. LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICA TIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATIO N OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED TH AT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE I NADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR T HAT THE ITA NO.1538/CHNY/16 ITA NO.1758/CHNY/19 ITA NO.1760/CHNY/19 TAX EFFECT CASES < RS.50 LAKHS :- 6 -: APPELLANTS SHALL BE AT LIBERTY TO POINT OUT THE CAS ES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMIS SED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY OTHER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEP S IN THIS REGARD. 9. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING TH E PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF C OMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., R EFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, AL L THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE. 10. IN THE RESULT, ALL THE APPEALS FILED BY THE RE VENUE ARE DISMISSED AS WITHDRAWN. PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 25 TH SEPTEMBER, 2019. SD/- SD/- ( ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER / CHENNAI * / DATED: 25 TH SEPTEMBER, 2019. K S SUNDARAM !,- .- / COPY TO: 1 . / APPELLANT 3. / () / CIT(A) 5. - !4 / DR 2. !' / RESPONDENT 4. / / CIT 6. / GF