ITO, Ward - 30(4), Kolkata, Karnataka V. Shri Prabir Kumar Mitra, Kolkata

ITA 1875/KOL/2010

• Counselvise Citation: 187523514 RSA 2010
• Duration Of Justice: 1 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2012
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2001-2002
• Appeal Filed On: 06-10-2010
• Court: TRIBUNAL
• Department Lawyers: RANADHIR GUPTA
• Assessee Lawyers: P K LILHA
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- C , KOLKATA [ . .. . , ,, , . .. . ! ! ! !. .. . , , , , '# ] [BEFORE SHRI N.VIJAYAKUMARAN , JUDICIAL MEMBER & SRI C.D.RAO , ACCOUNTANT MEMBER] $ $ $ $ / ITA NO. 1875/(KOL) OF 2010 %& '(/ ASSESSMENT YEAR : 2001-02 I.T.O., WARD-30(4),KOLKATA SHRI PRABIR KUMAR MITRA KOLKATA . (PAN:AEYPM 9045 B) (+, / APPELLANT ) - - VERSUS - (/0+,/ RESPONDENT ) +, 1 2 '/ FOR THE APPELLANTS: / SHRI RANADHIR GUPTA /0+, 1 2 '/ FOR THE RESPONDENT : / SHRI P.K.LILHA 3 1 !# /DATE OF HEARING : 20.03.2012. 4' 1 !# /DATE OF PRONOUNCEMENT : 22.03.2012. '5 / ORDER ' ' ' ' . .. . ! ! ! !. .. . , , , , '# PER C.D.RAO, AM THE ABOVE APPEAL FILED BY THE REVENUE IS AGAINST OR DER OF THE LD. C.I.T.(A)- XIV, KOLKATA DATED 9.07.2010 RELATING TO ASSESSMENT YEAR 2001-02. 2. IN THIS APPEAL THE REVENUE HAS TAKEN THE FOLLOWI NG GROUNDS :- 1.THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, KOL, HAD ERRED IN LAW IN DELETING THE ADDITION OF RS.5,24,000/- WHICH WAS MADE BECAUSE OF DISCREPANCY OF INCOME AS PER TDS CERTIFICATES RELEVANT TO THE F.Y. 2000-01, ENCLOSED ALONG WITH THE RETURN OF INCOME FOR THE A.Y. 2001-02 AND INCOME CREDITED IN P&L A/C. FOR THE YEAR ENDED AS ON 31-03-2001. 3. AT THE TIME OF HEARING THE LD.COUNSEL APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IS BELOW RS.2 LAKHS. 2 4. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIALS AVAILABLE ON RECORD, IT IS OBSERVED THAT THE TAX EF FECT IN THIS CASE IS BELOW RS. 2 LAKHS. 4.1. ADMITTEDLY THE TAX PAYABLE IN RESPECT OF GROUN DS OF APPEAL BY THE DEPARTMENT IS LESS THAN RS.2 LAKHS AND AS PER REVISED INSTRUCT ION OF THE CBDT NO. 279 DATED 24 TH OCTOBER, 2005 W.E.F. 31.10.2005 AND SINCE IN THE PR ESENT CASE, THE ABOVE REVISED INSTRUCTION OF CBDT IS WELL APPLICABLE AND THEREFOR E, IN OUR CONSIDERED OPINION, THE REVENUE SHOULD HAVE REFRAINED FROM FILING SECOND AP PEAL BEFORE THE TRIBUNAL. IT WOULD BE APT TO QUOTE THE OBSERVATION OF THE DELHI HIGH C OURT IN THE CASE OF CIT VS.- ITAT 232 ITR 207 AT PAGE 216 AS BELOW :- THE CENTRAL BOARD OF DIRECT TAXES INSTRUCTIONS ARE BINDING ON THE DEPARTMENT. IF THE CASE AT HAND IS C OVERED BY A POLICY LAID DOWN BY THE CENTRAL BOARD OF DIREC T TAXES IN THAT CASE NO FAULT CAN BE FOUND WITH THE ORDER O F THE TRIBUNAL REFUSING TO STATE THE CASE AND THERE IS NO REASON WHY THE HIGH COURT SHOULD INTERFERE WITH SUCH DISCR ETION OF THE TRIBUNAL AS HAS BEEN EXERCISED CONSISTENTLY WIT H THE UNIFORM POLICY LAID DOWN BY THE CENTRAL BOARD OF DI RECT TAXES WHICH BINDS ALL THE SUBORDINATE AUTHORITIES O F THE INCOME TAX DEPARTMENT. THE HIGH COURT WOULD NOT ORDINARILY ENCOURAGE BREACH OF POLICY DECISIONS AND THE DEPARTMENTAL INSTRUCTIONS WHICH HAVE A PUBLIC PURPO SE BEHIND THEM. VALUABLE TIME OF HIGH COURTS AND HIGHL Y PLACED TRIBUNALS IS NOT TO BE WASTED ON PETTY MATTE RS. 4.2.. FURTHER, THE BOMBAY HIGH COURT HAS ALSO HELD IN THE CASE OF CIT VS.- CAMCO COLOUR LTD. (SUPRA) AND IN THE CASE OF PITHWA ENGIN EERING WORKS REPORTED IN 276 ITR 519 MUMBAI THAT THE CIRCULAR IS BINDING ON THE REVE NUE AND AN APPEAL OR REFERENCE CONTRARY TO THE INSTRUCTION ISSUED IN THE CIRCULAR WOULD NOT BE CONSIDERED BY THE COURT. 4.3. WE FURTHER FIND THAT IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE AND IT IS WELL SETTLED THAT ONE HAS TO ADOPT THAT INTERPRETATION WHICH FAVOURS THE ASSESSEE AS HELD BY HONBLE SUPRE ME COURT IN CASE OF CIT VS.- VEGETABLE PRODUCT LTD. REPORTED IN 88 ITR 192 (SC). 3 4.4. IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL FILED BY THE DEPARTMENT, AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), IS CONTRARY T O THE POLICY DECISION OF THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY THE DEPA RTMENT IS DISMISSED IN LIMINE . 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE COURT ON 22.03.2012. SD/- SD/- . .. . , , , , % % % % N.VIJAYAKUMARAN, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 22.03.2012. '5 1 /%% 6''7- COPY OF THE ORDER FORWARDED TO: 1. SHRI PRABIR KUMAR MITRA, 84, RAJA BASANTA ROY RO AD, KOLKATA-700029. 2. I.T.O.,WD-30(4), KOLKATA 3. CIT. 4. CIT(A)-XIV, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA 0 /%/ TRUE COPY, '5/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.)