DCIT, V. M/s Karnataka State Toursim Development Corporation Ltd.,

ITA 1860/BANG/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8747 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 03-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 31-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

ITA.1860/B/2013 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI. VIJAYPAL RAO, JUDICIAL MEMBER I.T.A NO.1860/BANG/2013 (ASSESSMENT YEAR : 2008-09) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -11(5), BANGALORE .. APPELLANT V. M/S. KARNATAKA STATE TOURISM DEVELOPMENT CORPORATIO N LTD, NO.49, 2 ND FLOOR, WEST AVENUE, KHANIJA BHAVAN, RACE COURCE ROAD, BANGALORE 560009 ..RESPONDENT PAN : AACCK3563F ASSESSEE BY : NONE REVENUE BY : DR. P. K. SRIHARI, ADDL. CIT HEARD ON : 06.01.2016 PRONOUNCED ON : 06.01.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY REVENUE DIRECTED AGAIN ST ORDER DATED 30.09.2013 OF CIT (A)-I, BANGALORE, FOR THE A. Y. 2008-09. ITA.1860/B/2013 PAGE - 2 02. NOBODY APPEARED ON BEHALF OF THE ASSESSEE. WHE N THE APPEAL WAS TAKEN UP FOR HEARING , THE BENCH POINTED OUT TO THE LD. DR THAT TAX EFFECT INVOLVED IN THIS APPEAL WAS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEAR, THEREFORE BY VIRTUE OF CIRCULAR NO .21/2015, DT.10.12.2015, IS BELOW THE LIMIT LAID DOWN FOR FILING APPEALS BEF ORE THIS TRIBUNAL. 03. LD. DR SUBMITTED THAT PARA 8 OF THE CIRCULAR WA S NOT APPLICABLE IN THIS CASE. THEREFORE HE DID NOT OBJECT TO THE APPL ICATION OF THE CIRCULAR. 04. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTEN TIONS. PARA 4 OF THE CIRCULAR NO.21/2015 (SUPRA) IS REPRODUCED HEREUNDER : 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFER ENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BE EN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AG AINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRE D TO AS DISPUTED ISSUES). HOWEVER THE TAX WILL NOT INCLU DE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST IT SELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EF FECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOM E, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDIT IONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAI NST. 05. THE TAX EFFECT ON THE ISSUES THAT ARE DISPUTED BY THE REVENUE IS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEAR. ASSESSEE HAD NOT CHALLENGED THE CONSTITUTIONAL VALIDITY OF ANY PROVI SIONS OF THE ACT NOR HAD IT ITA.1860/B/2013 PAGE - 3 CHALLENGED THE LEGALITY OF THE CIRCULAR. REVENUE H AS NOT BROUGHT TO OUR NOTICE ANYTHING TO SHOW THAT THE APPEAL AROSE ON AN ISSUE EMANATING FROM ANY REVENUE AUDIT OBJECTIONS ACCEPTED BY THE DEPART MENT. ADDITION GIVING RISE TO THE APPEAL DOES NOT RELATE TO ANY UN DISCLOSED FOREIGN ASSETS / BANK ACCOUNTS. THUS WE FIND THAT CIRCULAR NO.21/ 2 015 (SUPRA) IS SQUARELY APPLICABLE IN THIS CASE. HOWEVER IF REVENUE FIND T HAT APPEAL ARISE OUT OF ISSUES EMANATING FROM AUDIT OBJECTION IT WILL BE FR EE TO FILE MP FOR RECALLING THIS ORDER. 06. WITH THE ABOVE OBSERVATIONS APPEAL OF THE REVEN UE IS THEREFORE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 6TH DAY OF JA NUARY, 2016. SD/- SD/- (VIJAYPAL RAO) (ABRAH AM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER MCN COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR ITA.1860/B/2013 PAGE - 4