Assistant Commissioner of Income tax, Ichalkaranji Circle, Ichalkaranji V. Jainco Syntex Pvt.Ltd, Kolhapur

ITA 1879/PUN/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5980 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 03-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI LALIET KUMAR, JM . / ITA NO.1879/PUN/2017 / ASSESSMENT YEAR : 2007-08 ACIT, ICHALKARANJI CIRCLE, ICHALKARANJI. ....... / APPELLANT / V/S. JAINCO SYNTEX PVT. LTD., 10/88, BAJAKUWAK SADAN, VARDHAMAN CHOWK, ICHALKARANJI, DIST. KOLHAPUR-416115. PAN : AAACJ4781E / RESPONDENT REVENUE BY : SHRI DEEPAK GARG ASSESSEE BY : SHRI M. K. KULKARNI / DATE OF HEARING : 10.02.2020 / DATE OF PRONOUNCEMENT : 10.02.2020 / ORDER PER LALIET KUMAR, JM: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-2, KOLHAPUR DATED 15.06.2017 FOR THE ASSESSMENT YEAR 2007-08. 2. BEFORE US, AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF LATEST CBDT CIRCULAR NO.17/2019 [F.NO.279/MISC.142/2007-ITJ (PT)] DATED 08 TH AUGUST, 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE REVENUE IN APPEAL RAISED 2 ITA NO.1879/PUN/2017 GROUNDS ASSAILING THE FINDINGS OF CIT(A) IN DELETING THE ADDITIONS. THUS, THE TAX EFFECT ON THE SAID ADDITIONS IS LESS THAN RS.50 LAKHS. 3. THE LD. DR FOR THE REVENUE MENTIONED THAT THE APPEAL WAS FILED IN THE YEAR 2017 WHEN THE TAX EFFECT LIMIT WAS RS.20 LAKHS. FURTHER, LD. DR FOR THE REVENUE FAIRLY ADMITTED THAT NOW THE PRESENT APPEAL IS COVERED UNDER THE NEW TAX EFFECT LIMIT OF RS.50 LAKHS AS PER THE RECENT CBDT CIRCULAR (SUPRA). 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A) IN DELETING THE ADDITIONS. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO.17/2019 [F.NO.279/MISC.142/2007-ITJ (PT)] DATED 08 TH AUGUST, 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08-08- 2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO.3 OF 2018 DATED 11-07-2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL AND IN VIEW OF THE CBDT CIRCULAR (SUPRA), THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO 3 ITA NO.1879/PUN/2017 SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11-07-2018 AND ITS AMENDMENT DATED 20-08-2018. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF FEBRUARY, 2020. SD/- SD/- (D. KARUNAKARA RAO) (LALIET KUMAR) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 10 TH FEBRUARY, 2020. SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-2, KOLHAPUR. 4. THE PR. CIT-2, KOLHAPUR. 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.