I.T.O Wd - 30(4),kolkata, Kolkata V. Shri Sarad Kumar Tibrewal, Kolkata

ITA 1768/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100289 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 06-06-2013
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : B BENCH : KOLKATA BEFORE SHRI MAHAVIR SINGH, JM & SHRI M.BALAGANESH, AM ITA NOS.& A.Y REVENUE / REP. BY VS. ASSESSEE/PAN/& REP. BY QUANTUM INVOLVED (RS.) TAX EFFECT INVOLVED (RS.) 1768/K/13 A.Y 2009-10 I.T.O. WARD 30(4), KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR SHRI SARAD KUMAR TIBREWAL SHYAM KUNJ 14/1 HINDUSTAN ROAD, KOL-29 PAN:ABUPT6132F REP. BY: NONE 25,20,000/- 8,56,800/- 1736/K/13 A.Y 2004-05 I.T.O WARD 40(4), KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR M/S. SRI SRI LOKNATH ENTERPRISES 75 GOLAGHATA ROAD, KOL-48 PAN:AAVFS 3013L REP. BY : NONE 27,77,182/- 9,44,242/- 1147/K/15 A.Y 2008-09 I.T.O WARD 5(3), KOLKATA REP. BY : SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR SHRI HANUMAN MAL TATER FORT LEE20 O.C GANGULY SARANI, 5 TH FL., FLAT NO.506, KOL-20 PAN: ABTPT7167K REP. BY: SHRI AHKAL DUDHWALA, FCA, LD.AR 25,46,000/- 8,65,640/- 1280/K/15 A.Y 2008-09 I.T.O W-12(2), KOLKATA REP. BY : SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR M/S. GEM REFINERIES (1997) PVT. LTD 14,P.N BANERJEE ROAD, BUDGE BUDGE, KOL-129 PAN:AABCG0976B REP. BY : NONE 16,29,614/- 5,54,069/- IT(SS) NO.45/K/14 A.Y 2007-08 DCIT,C.C- XXIII,KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR SHRI KAMAL KUMAR KOTHARI 195/1/1 MAHATMA GANDHI ROAD, KOL-7 PAN:AFJPK6845H REP. BY : NONE 10,83,449/- 3,68,373/- IT(SS) NO. 19/K/15 A.Y 2008-09 DCIT,C.C-2(2), KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR SHRI SUNIL KUMAR GOENKA 92/B MOULANA ABUL KALAM AZAD SARANI, KOL- 54. PAN:ADWPG 8327P REP. BY: NONE 26,68,560/- 9,07,310/- 649 /K/14 I.T.O WARD 4 1(2), SHRI GOUTAM G UPTA 11,38,020/ - 3,86,927/ - T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 2 A.Y 2007-08 KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR 6/1A GOURI SUNDER SETH LANE, KOL-50 PAN:ADCPG 4447Q REP. BY : NONE 652/K/14 A.Y 2006-07 DCIT,CIR-2, KOLKATA REP. BY:SHRI UDAY KUMAR SARDAR M/S. BRIGHT ADVERTISING PVT. LTD 156A LENIN SARANI, KOL14 PAN:AABCC6730C REP. BY : NONE 1,80,098/- 61,233/- IT(SS) NO. 77/K/13 A.Y 2008-09 DCIT,CEN.CIR- VII, KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR DR. VIJAY KR. KEJRIWAL FLAT NO.4A & 4B 78, SAMBHUNATH PANDIT ST., KOL-20 PAN:AJHPK 3763A REP. BY : NONE 15,00,000/- 5,10,000/- 2048/K/14 A.Y 2007-08 I.T.O W 11(4), KOLKATA REP. BY: SHRI UDAY KUMAR SARDAR, JCIT/SR.DR M/S. CIMSYS RESEARCH INDIA PVT. LTD 56D, MIRZA GHALIB ST, KOL-16. PAN: AABCC2581L REP. BY : SHRI PRANABESH SARKAR, ADVOCATE, LD.AR 8,27,112/- 2,81,218/- 2208/K/14 A.Y 2009-10 D.C.I.T, CIR-6(1), KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR M/S. GINZA INDUSTRIES LTD 11, CLIVE ROW, ROOM NO. 1A/A, KOL-1 PAN:AABCG0675 REP. BY : NONE 14,73,735/- 5,01,069/- 2063/K/14 A.Y 2009-10 DCIT, CIR-7, KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR M/S. VISHAL VICTORY OIL TECH (P) LTD 28/2 SHAKESPEARE SARANI, KOL-17 PAN: AABCV0848F REP. BY : NONE 18,67,870/- 6,35,075/- 54/K/15 A.Y 2009-10 I.T.O WARD 2(2), KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR AVADESH KR. GARG PROP: M/S. SHREE SHYAM TRADING CO. & M/S.SHREE SHYAM CHIRA MILL, T.N SCHOOL, DURGAPUR-713201 PAN:ADAPG 0440K REP. BY: NONE 14,07,108/- 4,78,417/- 1633/K/14 A.Y 2005-06 ACIT, CIR-2, ASANSOL M/S. P.K THAKUR & CO. PVT. LTD, RIVERSIDE ROAD, 24,09,631/- 8,19,274/- T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 3 REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR HIRAPUR P.O BURNPUR, DIST: BURDWAN(WB) 713325 PAN: AAECP 1080E REP. BY : NONE 37/K/14 A.Y 2008-09 ACIT, CIR-34),KOL REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR M/S. BANWARILAL PASSARI 16, INDIA EXCHANGE PL., KOL-1 PAN:AACFB 7611A REP. BY : SH. S. JHAJHARIA, FCA, LD.AR 28,75,109/- 9,77,537/- 1029/K/15 A.Y 2006-07 I.T.O WARD 37(2), KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR SHRI NAVIN KUMAR SINGH 76, B.B GANGULY ST & 242 B.B GANGULY ST, KOL- 12 PAN: BBSPS 0413B REP. BY : NONE 21,22,500/- 7,21,650/- 121/K/14 A.Y 2009-10 I.T.O W 36(3), KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR SATISH KR. BANSAL 145/1 OLD CHINA BAZAR ST, KOL-1 PAN:ADPPB3107M REP. BY : NONE 11,03,967/- 3,75,349/- 1638/K/14 A.Y 2011-12 D.D.I.T (I.T) 3(1), KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR,JCIT/SR.DR UTPAL HALDAR B-2/161 KALYANI, DIST: NADIA, W.B-741235 PAN:AAZPH 8787N REP. BY : NONE 21,78,840/- 7,40,806/- 1747/K/14 A.Y 2009-10 I.T.O, W 35(2), KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR SRI JAI SINGH DOSHI C/O M/S. INDUSTRIAL TRADERS 63 RADHA BAZAR ST, 1 ST FL., KOL-1 PAN:ACXPD5066A REP. BY : SH. SUNIL SURANA, FCA, LD.AR 13,56,654/- 4,61,262/- 1673/K/14 A.Y 2007-08 I.T.O, WARD 29(3), KOLKATA REP. BY : SHRI UDAY KUMAR SARDAR, JCIT/SR.DR VIJAY SHANKAR BAJORIA 125 S.P MUKHERJEE ROAD, KOL-26. PAN:ADWPB 9946R REP. BY : SHRI N.M BHANSALI, ADVOCATE, LD.AR 2,36,136/- 80,286/- 1505/K/14 DCIT,CIR-6, KOL M/S. LONG VIEW TEA 15 ,67,452/- 5,32,934/- T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 4 A.Y 2006-07 & CO NO. 88/K/14 REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR COMPANY LTD 16 HARE ST., KOL-1 PAN:AAACL 5564F REP. BY: SHRI S.JHAJHARIA, LD.AR 611/K/14 A.Y 2009-10 I.T.O W 3(1) ASANSOL REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR M/S. MGB TRANSPORT C/O LATE ASHOK MAHATO, SEARSOLE, RAJBARI, RANIGANJ PAN:AAOFM1663P REP. BY: NONE 4,96,030/- 1,68,650/- 593/K/14 A.Y 2010-11 DCIT,CIR-53, KOLKATA REP. BY : SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR SHRI RAMESH MALLICK PROP: M/S. NORTHERN AGENCY, DAKGHAR, MAHESHTALA, 24 PGS(S) WB 743353 PAN:AEUPM 8057P REP. BY: NONE 25,22,387/- 8,57,611/- 1496/K/14 A.Y 2010-11 ACIT,CIR-31, KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR PRADIP KUMAR GANERIWALA 16B ROWLAND ROAD, KOL- 20 PAN:ACYPG 7805K REP. BY: SHRI MANOJ KATARUKA, ADVOCATE, LD.AR 10,39,049/- 3,53,277/- 1580/K/14 A.Y 2005-06 DCIT,CC-XXVII, KOL REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR BASANT KUMAR BAID 7 SWALLOW LANE, KOL-1 PAN: AGXPB0506H REP. BY: NONE 271(1)( C) PENALTY 4,05,431/- 4,05,431/- 1585/K/14 A.Y 2005-06 D.C.I.T, CC- XXVII, KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR SRI SURENDRA KR. KHATER C/O M/S. JAIN IMPEX PVT. LTD 113B MANOHAR DAS ST., 2 ND FL., KOL-7 PAN:AETPK 1619N REP. BY: NONE -DO- 4,60,847/- 4,60,847/- 1582/K/14 A.Y 2005-06 DCIT, CC-XXVII, KOL REP. BY : SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR PREM LATA BAID 7 SWALLOW LANE, KOL-1 PAN: ADBPB 4438M REP. BY: NONE -DO- 3,13,211/- 3,13,211/- 1579/K/14 A.Y 2005-06 DCIT, CC-XXVII, KOL BASANT KUMAR BAID L/R OF BIJAY S.BAID 7 -DO- 4,58,683/- 4,58,683/- T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 5 REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR SWALLOW LANE, KOL-1 PAN: ADGPB7440Q REP. BY: NONE 1583/K/14 A.Y 2005-06 DCIT, C.C- XXVII, KOLKATA REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR CHANDRALEKHA BAID 7 SWALLOW LANE, KOL-1 PAN:ADVPB 4060F REP. BY: NONE -DO- 3,49,689/- 3,49,689/- 1170/K/14 A.Y 2009-10 A.C.I.T, CIR-30, KOLKATA REP. BY: NONE SUDESH CHANDRA TALWAR 8 DOVER PARK, KOL-19 PAN:ABVPT 0525F REP. BY: NONE 25,32,398/- 8,61,015/- IT(SS) NO.40/K/14 A.Y 2006-07 DCIT, CC-XIII, KOL REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR M/S. DHOOT DEVELOPERS PVT. LTD 904-907 TIME TOWER M.G ROAD, SEC- 28, GURGAON-122001 PAN:AABCD 5433A REP. BY: NONE 11,18,478/- 3,80,282/- 481/K/14 A.Y 2009-10 DCIT, CIR-4, KOL REP.BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR M/S. VIKRAM HARI AWASTY SHREE RAM GARDENS BUILDINGS 15 BELVEDERE ROAD, FLAT NO.4A, 4 TH FL, KOL-27 PAN: ACUPA 5673M REP. BY: NONE 9,20,699/- 3,13,038/- 478/K/14 A.Y 2006-07 DCIT, CIR-4, KOL REP.BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR M/S. ETHELWORLD ESTATES PVT. LTD FLAT NO. 2C & 2D, 25 BALLYGUNGE CIRCULAR ROAD, KOL-19 PAN:AAACE5758J REP. BY: NONE 12,21,605/- 4,15,346/- 2504/K/13 A.Y 2008-09 ACIT,CIR-3, ASANSOL REP. BY: SHRI UDAY KR. SARDAR, JCIT, LD.SR.DR M/S. SHRI SHYAM CEMENT WORKS PVT. LTD MANGALPUR INDUSTRIAL ESTATE, MANGALPUR, RANIJANJ, BURDWAN 713347 PAN:AADCS 8052J REP. BY: NONE 23,47,690/- 7,98,215/- 1511/K/14 I.T.O W 1, RAIGANJ SMT. KRISHNA SAHA, 2, 10,016/- 71,405/- T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 6 A.Y 2010-11 REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR RABINDRAPALLY, RAIGANJ, UTTAR DINAJPUR-733134 PAN:ALKPS7711F REP.BY:MISS VARSHA JALAN, ADVOCATE, LD.AR 1522/K/14 A.Y 2008-09 I.T.O W 3(3), KOL REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR M/S. BEEJAY INVESTMENT & FINANCIAL CONSULTANTS PVT. LTD 13 B.B GANGULY ST., KOL-12 PAN:AABCB0832B REP. BY: MISS VARSHA JALAN, ADVOCATE, LD.AR 14,45,122/- 4,91,341/- 686/K/15 A.Y 2010-11 I.T.O W 8(1), KOLKATA REP. BY : SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR M/S. BHARAT HYDRO POWER CORPORATION 113 PARK ST., 3 RD FL. KOL-16 PAN:AACCB4575C REP. BY: NONE 6,04,736/- 2,05,610/- 629/K/15 A.Y 2010-11 I.T.O WARD 3(1), ASANSOL REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR SRI CHANDAN SINGH S/O SRI GAJANAND SINGH, RAHMATNAGAR, GIRJAPA P.O RANIGUNJ DIST: BURDWAN 713347 PAN: AWZPS 5637E REP. BY : NONE 26,30,267/- 8,94,291/- 1251/K/14 A.Y 2007-08 ACIT, CIR-52, KOL REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR RAM PRASAD AGARWALA 140/4B N.S.C BOSE ROAD, TOLLYGUNE, KOL-40 PAN:ADDPA 3504D REP. BY: NONE 17,42,479/- 5,92,443/- 991/K/15 A.Y 2009-10 I.T.O W 31(2),KOL REP. BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR AMIT KR. BANERJEE 65A SERPENTINE LANE, KOL-14 PAN:AEBPB8611H REP. BY: NONE 21,51,398/- 7,31,475/- 2607/K/13 A.Y 2005-06 I.T.O W 28(2), KOL REP.BY: SHRI UDAY KR. SARDAR, JCIT/LD.SR.DR M/S. HOOGHLY TRADERS 26 KARL MARX SARANI, KHIDERPORE, KOL-23 PAN:AABFH9155J REP. BY: SHRI S.JHAJHARIA, LD.AR 17,61,259/- 5,98,828/- 1485/K/13 A.Y 2008-09 I.T.O WARD 2(3), ASANSOL REP. BY: SHRI CHHOTE PRASAD SITARAM BHAWAN GOPAL NAGAR P.O KALLA CENTRAL 29,88,115/- 8,98,109/- T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 7 SHRI UDAY KR. SARDAR,JCIT/SR.DR HOSPITAL, ASANSOL, BURDWAN-713340 PAN:AIUP8016B REP. BY : NONE DATE OF HEARING: 29-12-2015 DATE OF PRONOUNCEMENT: 29-12-2015 ORDER SHRI M.BALAGANESH, AM : THESE APPEALS OF THE REVENUE ARISE OUT OF THE VAR IOUS ORDERS OF THE LEARNED CIT(A) AGAINST THE ORDERS OF ASSESSMENT FRAMED U/S 147 / 1 43(3) / 144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. AT THE OUTSET, IT IS SEEN THAT THE TAX EFFECT O N THE DISPUTED ADDITIONS BEFORE US IS LESS THAN RS. 10 LACS. AS THE TAX EFFECT IN ALL THESE APPEALS ARE LESS THAN RS 10 LACS, THESE APPEALS ARE TAKEN UP TOGETHER AND DISPOSED OFF BY T HIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE MATER IALS AVAILABLE ON RECORD. IT IS SEEN FROM THE PERUSAL OF THE RECORDS THAT THE TOTAL TAX EFFECT ON THE ADDITIONS DISPUTED BEFORE US IS ADMITTEDLY BELOW THE TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 FOR PREFERRING APPEALS BEFORE TRIB UNAL BY THE REVENUE. IT WILL BE PERTINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCU LAR NO. 21 / 2015 DATED 10.12.2015 :- 3. HENCEFORTH, APPEALS / SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER :- S.NO. APPEALS IN INCOME TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 8 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE . FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERE NCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE B EEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME I N RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREI NAFTER REFERRED TO AS DISPUTED ISSUES). HOWEVER, THE TAX WILL NOT INCLUDE ANY I NTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOM E, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CAS E OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDU CED IN THE ORDER TO BE APPEALED AGAINST. 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR , APPEAL, CAN BE FILED IN RESPECT O F SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHA LL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN OTHER WORDS, HENCEFORTH, A PPEALS CAN BE FILED ONLY WITH REFERENCE TO THE TAX EFFECT IN THE RELEVANT ASSESSM ENT YEAR. HOWEVER, IN CASE OF A COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AU THORITY, WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEAL SHALL BE FILED IN RESPECT O F ALL SUCH ASSESSMENT YEARS EVEN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBE D MONETARY LIMITS IN ANY OF THE YEAR(S), IF IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEEDS THE MONETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER / JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH A SSESSEE SHALL BE DEALT WITH SEPARATELY. T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 9 8. ADVERSE JUDGEMENTS RELATING TO THE FOLLOWING ISS UES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE ARE UNDER CHALLENGE, OR (B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR C IRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS / BANK ACCOUNTS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN / NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3.1 WE FIND THAT INTENTION BEHIND THE CIRCULAR NO.2 1/2015 DATED 10-12-2015 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- BY PASSAGE OF TIME, THE MONEY VALUE HAS GONE DOWN, THE COST OF LITIGATION EXPENSES HAS GONE UP, NUMBER OF ASSESSES ON THE FI LES OF THE DEPARTMENT HAVE BEEN INCREASED AND CONSEQUENTLY, THE BURDEN ON THE DEPARTMENT IS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR COURTS ARE CHOKED WITH HUGE PENDENCY OF CASES. IN THIS VIEW OF THE MATTER, THE CBDT HAS RIGHTLY TAKEN A DECISION TO REVISE THE MONETARY LI MITS IN TUNE WITH THE PRESENT VALUE OF MONEY AND WITH A VIEW TO REDUCE THE LITIGA TION AND OFFERING RELIEF TO SMALL TAX PAYERS. THIS IS ALSO IN VIEW OF THE FACT THAT TIME AND ENERGY OF THE DEPARTMENT COULD BE USED MORE PRODUCTIVELY AND EFF ICIENTLY TO CATCH HOLD OF BIG FISHES, WHO IN TURN WOULD CONTRIBUTE MORE TO TH E DEVELOPMENT OF THE COUNTRY. T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 10 3.2. ON PERUSAL OF THE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 AND THE MATERIALS AVAILABLE ON RECORD, WE COULD NOT SEE WHETHER THE IMPUGNED CA SE FALLS UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR. WE ALSO FIND TH AT THE CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. WE FIND THAT THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. THIS PO SITION HAS BEEN CONFIRMED BY THE HONBLE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS V S INDIAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECIS IONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIR CULARS AND LAID DOWN THAT WHEN A CIRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION T HEN THE REVENUE IS BOUND BY IT AND CANNOT BE ALLOWED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY TO THE TERMS OF THE STATUTE. HENCE WE HOLD THAT THE APPEAL(S) OF THE REVENUE DES ERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.21 / 2015 DATED 10.12.2015. ACCORDINGLY, THIS BEING A LOW TAX EFFECT CASE, WE DISMISS THE APPEAL OF THE REVENUE IN LIMIN E , AS UNADMITTED, WITHOUT GOING INTO THE MERITS OF THE CASE. 3.3 IN RESPECT OF CO NO.88/KOL/2014 ARISING OUT OF ITA NO. 1505/KOL/2014 IS DISMISSED AS IN FRUCTUOUS IN VIEW OF THE FACT THAT THE REVEN UES APPEAL IS DISMISSED BASED ON LOW TAX EFFECT. THE ASSESSEE HAS ALSO FILED APPEAL BEFORE T HE TRIBUNAL SEPARATELY. 4. IN THE RESULT, THE ABOVE APPEALS OF THE REVENUE ARE DISMISSED INLIMINE. ORDER PRONOUNCED IN THE OPEN COURT ON 29.12.2015. SD/- ( MAHAVIR SINGH, JUDICIAL MEMBER ) SD/- (M. BALAGANESH, ACCOUNTANT MEMBER) DATE 29 /12/2015 T.E.L.T (LESS THAN) RS. 10 LAKHS- B-AM 11 1.. THE APPELLANT CONCERNED: 2 THE RESPONDENT CONCERNED : 3 /THE CIT, 4.THE CIT(A ) 5. DR, KOLKATA BENCH 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT REGISTRAR **PRADIP/SPS COPY OF THE ORDER FORWARDED TO: