Assistant Commissioner of Income Tax, Circle-2(4), Bangalore V. Sri Panati Vidyanath Reddy, Bangalore

ITA 1827/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7656 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 08-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, BANGALORE BEFORE SHRI. SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO S . 1825 TO 1828/BANG/2017 ASSESSMENT YEAR S : 2009 - 10 TO 2012 - 13 THE ASST. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 2(4), BENGALURU. VS. SHRI. PANATI VIDYANATH REDDY, NO. 10, SRI RAMANJANEYA NILAYA, 32 ND MAIN, 5 TH CROSS, DOLLARS COLONY, BTM 1 ST STAGE, BENGALURU 560068. PAN : AFMPR 3580 F APPELLANT RESPONDENT C.O. NO. & ASSESSMENT YEAR APPELLANT RESPONDENT 119/BANG/2017 2009-10 (IN ITA NO.1825/BANG/2017) SHRI. PANATI VIDYANATH REDDY, PAN : AFMPR 3580 F ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(4), BENGALURU. 120/BANG/2017 2010-11 (IN ITA NO. 1826 /BANG/201 7 ) SHRI. PANATI VIDYANATH REDDY, PAN : AFMPR 3580 F -DO- 121/BANG/2017 2011-12 (IN ITA NO. 1827 /BANG/201 7 ) SHRI. PANATI VIDYANATH REDDY, PAN : AFMPR 3580 F -DO- 122/BANG/2017 2012-13 (IN ITA NO. 1828 /BANG/201 7 ) SHRI. PANATI VIDYANATH REDDY, PAN : AFMPR 3580 F -DO- REVENUE BY : SHRI. B. VENKATESHWAR RAO , C IT ASSESSEE/C.O. BY : SHRI. V. SRINIVASAN, ADVOCATE DATE OF HEARING : 2 6 /0 7 /201 8 DATE OF PRONOUNCEMENT : 27 / 0 7 /201 8 ITA NOS. 1825 TO 1828/BANG/2017 & C.O. NOS. 119-122/BANG/2017 PAGE 2 OF 4 O R D E R PER SUNIL KUMAR YADAV, JM : THESE APPEALS ARE PREFERRED BY THE REVENUE AGAINST THE ORDERS OF THE CIT(A). ASSESSEE HAS ALSO FILED THE CROSS OBJECTION. AGAINST THE ORDER OF THE CIT(A). 2. DURING THE COURSE OF HEARING, IT HAS BEEN POINTED OUT THAT TAX EFFECT IN ALL THE REVENUES APPEALS 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 11TH JULY, 2018, WHEREIN THEY HAVE REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED THEREIN IS RS.20 LAKHS AND THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR IT 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 PENDING APPEALS, THOUGH THEY ARE FILED BY THE REVENUE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFIED THAT THE ASSESSING OFFICER HAS TO CALCULATE 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), APPEAL(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 SPECIFIED. IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT 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. HOWEVER, ITA NOS. 1825 TO 1828/BANG/2017 & C.O. NOS. 119-122/BANG/2017 PAGE 3 OF 4 AN EXCEPTION IS MADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASSED BY THE 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 BECAUSE 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. 3. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLICABLE TO ALL PENDING APPEALS. IN THE PRESENT CASE, THE TAX EFFECT ON THE ADDITION IN DISPUTE, WHICH WAS DELETED BY THE CIT(A) BY THE IMPUGNED ORDER IS INDISPUTABLY BELOW 20LAKHS. 4. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED SECTION 268A OF THE INCOME TAX ACT, 1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX AUTHORITIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING 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 SUBSECTION (1) OF SECTION 268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APPEAL IS LESS THAN THE PRESCRIBED LIMIT IN PARA-3 OF THE ABOVE CIRCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEALS OF THE REVENUE. ITA NOS. 1825 TO 1828/BANG/2017 & C.O. NOS. 119-122/BANG/2017 PAGE 4 OF 4 5. SINCE THE REVENUES APPEALS HAS BEEN DISMISSED ON ACCOUNT OF TAX EFFECT, C.OS. OF THE ASSESSEE HAS BECOME ACADEMIC AND HENCE THE SAME HAS BECOME INFRUCTUOUS. THUS, WE DISMISS THE C.OS. OF THE ASSESSEE. 6. IN THE RESULT, THE APPEALS OF THE REVENUE AND C.OS. OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH JULY, 2018. SD / - SD/- (A. K. GARODIA ) (SUNIL KUMAR Y ADAV ) ACCOUNTANT M EMBER JUDICIAL MEMBER PLACE : BANGALORE DATED : 27/07/2018 /NSHYLU/* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT 4 DR 5 . GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNA L BANGALORE