DCIT, CHENNAI V. R.R. Constructions & Infrastructure Private Ltd., CHENNAI

ITA 185/CHNY/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8667 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 19-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , .. , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI DUVVURU R.L.REDDY, JUDICIAL MEMBER SL.NO. ITA NO. AY APPELLANT RESPONDENT 1 2321/CHNY/2017 2014-15 THE DCIT/ THE ACIT, CORPORATE CIRCLE-5(2), CHENNAI-34. M/S.RR CONSTRUCTIONS & INFRASTRUCTURE INDIA PVT. LTD., NO.1, DORAI ARASAN STREET, SALIGRAMAM, CHENNAI- 600 093. [PAN: AADCR 6735 R] 2 185/CHNY/2017 2013-14 3 CO NO. 131/CHNY/2017 (IN ITA NO.185/CHNY/2017) 2013-14 M/S.RR CONSTRUCTIONS & INFRASTRUCTURE INDIA PVT. LTD., NO.1, DORAI ARASAN STREET, SALIGRAMAM, CHENNAI- 600 093. [PAN: AADCR 6735 R] THE DCIT/ THE ACIT, CORPORATE CIRCLE-5(2), CHENNAI-34. 4 2681/CHNY/2016 2012-13 THE DCIT/ THE ACIT, CORPORATE CIRCLE-5(2), CHENNAI-34. M/S.RR CONSTRUCTIONS & INFRASTRUCTURE INDIA PVT. LTD., NO.1, DORAI ARASAN STREET, SALIGRAMAM, CHENNAI- 600 093. [PAN: AADCR 6735 R] 5 1010/CHNY/2016 2011-12 6 2667/CHNY/2014 2010-11 / APPELLANT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.NO. NAME OF COUNSEL 1-6 MR.HELEN RUBY JESINDHA, JCIT '# /RESPONDENT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.NO. NAME OF COUNSEL 1-6 N.DEVANATHAN, ADV. / DATE OF HEARING : 04-09-2019 / DATE OF PRONOUNCEMENT : 09 - 09 - 2019 TAX EFFECT (6) CASES < RS.50.00 LAKHS :- 2 -: / O R D E R PER BENCH : THESE 05 APPEALS AND 01 CROSS OBJECTION PERTAI N TO THE APPEALS ARE FILED BY THE VARIOUS ASSESSING OFFICERS, ALL TH ESE APPEALS CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE T AXPAYERS BY THE COMMISSIONERS OF INCOME TAX (APPEALS) AND, MOST IMP ORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEE D RS.50,00,000/- IN EACH OF THESE APPEALS. THE CROSS OBJECTION TAKEN UP FOR HEARING ARE ONLY SUCH CROSS OBJECTION AS EMANATE FROM THESE APPEALS AND ARE BROADLY IN SUPPORT OF THE ORDERS PASSED BY THE COMMISSIONER (A PPEALS). 2. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC.1 42/2007-ITJ(PT) DATED 8 TH AUGUST, 2019, THE INCOME TAX DEPARTMENT HAS FURTHE R LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECIS IONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST T HE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OV ERALL TAX EFFECT, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE, IS RS.50,00,000/- OR LESS. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE C ONCESSION BY THIS CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTION MUST BE DISMISSED AS INFRUC TUOUS. TAX EFFECT (6) CASES < RS.50.00 LAKHS :- 3 -: 4. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 5. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO .3/2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS.3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT F ROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOM E-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: SL.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMITS (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 WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 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 EVERYASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARI SE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESS MENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEED S THE MONETARY LIMIT SPECIFIED 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 SPEC IFIED IN PARA-3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSE SSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE AS SESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. TAX EFFECT (6) CASES < RS.50.00 LAKHS :- 4 -: 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO.3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INT ACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. THE HONBLE SUPREME COURT IN THE CASE OF THE COMM ISSIONER OF INCOME TAX-5, NEW DELHI VS. KESHAV POWER LTD., IN S LP NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019 (8) TMI 811 (SC) HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.08.2019 HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LE SS THAN RS.2/- CRORES, GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT, WE SEE NO REASON TO IN TERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITION IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. 8. THE LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE C OVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CB DT CIRCULAR (SUPRA), EXCEEDS RS.50,00,000/-. NONE OPPOSES THIS PRAYER; W E ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LI BERTY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, 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 STEPS IN THIS RE GARD. TAX EFFECT (6) CASES < RS.50.00 LAKHS :- 5 -: 9. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF COMMIS SIONER OF INCOME TAX-5, NEW DELHI VS. KESHAV POWER LTD., REFERRED T O SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS FIL ED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE, AND AS THE RELATED CR OSS-OBJECTION OF THE ASSESSEE ARISE ONLY AS A RESULT OF THE APPEAL AND M ERELY SUPPORT THE ORDER OF THE CIT(A), THE CROSS OBJECTION FILED BY THE ASS ESSEE IS ALSO DISMISSED AS INFRUCTUOUS. 10. IN THE RESULT, ALL THE APPEALS FILED BY THE REVENU E ARE DISMISSED AS WITHDRAWN AND THE CROSS-OBJECTION FILED BY THE ASSE SSEE IS DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED ON THE 09 TH DAY OF SEPTEMBER, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) - /ACCOUNTANT MEMBER ( . / . . 2 ) ( DUVVURU R.L.REDDY ) 4 - /JUDICIAL MEMBER /CHENNAI, 5 /DATED: 09 TH SEPTEMBER, 2019. TLN '467 87 /COPY TO: 1. /APPELLANT 4. 9 /CIT 2. '# /RESPONDENT 5. 7 '44 /DR 3. 9 ( ) /CIT(A) 6. > /GF