ACIT, Circle-1(1), Tirupathi V. M/s. Sagar Sugars and Allied Products Pvt.Ltd, Chittoor

ITA 1851/HYD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6025 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 31-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIKHIL KUMAR GOVILA
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1851/HYD/2011 ASSESSMENT YEAR: 2008-09 ASST. COMMISSIONER OF INCOME- TAX, CIRCLE 1(1), TIRUPATHI. VS. M/S SAGAR SUGARS AND ALLIED PRODUCTS PVT. LTD., NELVOY (V), S.R. PURAM(M), CHITTOOR DIST. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI NIKHIL KUMAR GOVILA ASSESSEE BY : SHRI R. VIJAYARAGHAVAN DATE OF HEARING 08-03-2016 DATE OF PRONOUNCEMENT 08-03-2016 O R D E R PER P. MADHAVI DEVI, J.M.: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS), GU NTUR, DATED 28/07/2011, FOR THE AY 2010-11. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, SHRI R. VIJAYARAGHAVAN SUBMITTED THAT THE AO ASSESSED TH E INCOME OF THE ASSESSEE U/S 143(3) OF THE ACT AT RS. 23,830/- AS A GAINST THE RETURNED INCOME OF RS. 23,834/- AFTER ALLOWING DEDUCTION U/S 80IA TO THE TUNE OF RS. 14,04,63,246/- AND, THEREFORE, THE TAXABLE B USINESS INCOME IS AT NIL. FURTHER, THE LD. COUNSEL FOR THE ASSESSEE S UBMITTED THAT WHILE COMPLETING THE ASSESSMENT, THE AO DISALLOWED THE FO REX LOSS OF RS. 3,94,83,000/- AS SPECULATIVE IN NATURE. EVEN AFTER DISALLOWING THE FOREX LOSS TO THE EXTENT OF RS. 3.94 CRORES, THE TA XABLE INCOME IS ONLY RS. 23,820/-. THEREFORE, THERE IS NO REVENUE L OSS TO THE DEPARTMENT. HE, THEREFORE, SUBMITTED THAT THE TAX E FFECT IN THIS APPEAL 2 ITA NO. 1851/HYD/2011 M/S SAGAR SUGARS & ALLIED PRODUCTS P. LTD. IS NIL/LESS THAN RS. 10 LAKHS AND THEREFORE, REVENU ES APPEAL IS LIABLE TO BE DISMISSED IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015. THIS CIRCULAR REGARDING THE PECUNIA RY LIMIT FOR PREFERRING THE APPEAL BEFORE THE ITAT BY THE REVENU E HAS NOW STATUTORY FORCE UNDER SEC. 268A OF THE INCOME-TAX A CT, 1961. ON GOING THROUGH THE ASSESSMENT ORDER, WE FIND THAT THE TOT AL INCOME ASSESSED BY THE A.O. IS AT RS. 23,830/- AND THE TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REVENUE IS LESS THAN RS. 1 0 LAKHS AND THIS POSITION HAS NOT BEEN DISPUTED BY THE LEARNED DR. THEREFORE, WE ARE SATISFIED THAT THE TAX EFFECT IN THIS APPEAL IS LES S 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 RESPEC TIVELY. THE MONETARY LIMIT FIXED FOR FILING OF APPEAL BEFORE TH E TRIBUNAL IS RS.10 LAKHS AND IT IS ALSO CLARIFIED THAT THE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WOULD HAVE BEEN CHARGEABLE ON SUCH TOTAL INCOME BEING RED UCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST W HICH, APPEAL IS INTENDED 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 APPEALS AND APPEALS TO B E FILED HENCEFORTH IN THE HIGH COURTS/TRIBUNAL AND HAS DIRECTED THE DE PARTMENT 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 1 0 TH DECEMBER, 2015, WE DISMISS THE APPEAL OF THE REVENUE WITH THE LIBERTY TO THE REVENUE TO SEEK RECALL OF THIS ORDER IF THIS CASE F ALLS WITHIN ANY OF THE EXCEPTIONS TO THE CBDT CIRCULAR MENTIONED THEREIN. 3 ITA NO. 1851/HYD/2011 M/S SAGAR SUGARS & ALLIED PRODUCTS P. LTD. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 8 TH MARCH, 2016. SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL M EMBER HYDERABAD, DATED: 8 TH MARCH, 2016 KV COPY TO:- 1) ACIT, CIRCLE 1(1), AAYAKAR BHAVAN, K.T. ROAD, TIRUPATHI 517 507 2) M/S SAGAR SUGARS & ALLIED PRODUCTS PVT. LTD., NE LAVOY VILLAGE, SRI RANGARAJAPURAM MANDAL, CHITTOOR DIST. 517 167 3) CIT(A), GUNTUR 4) CIT, TIRUPATHI 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.