DCIT, Circle-6, PUNE V. Shri Dharmasheel Nandlal Naik, HUF, PUNE

ITA 1934/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0872 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 09-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Keywords: Capital asset; Opportunity of being heard; Cost of acquisition; Fair market value; Valuation report; Tax effect; Capital Gains
• Section: 143(3); 201; 55A; 154; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE (THROUGH VIRTUAL COURT ) BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY , JM . / ITA NO.1934/PUN/2019 / ASSESSMENT YEAR : 2009 - 10 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 6, PUNE. ....... / APPELLANT / V/S. SHRI DHARMASHEEL NANDLAL NAIK, HUF 878, SHUKRAWAR PETH, PUNE - 411 002. PAN : AAAHN5155M / RESPONDENT . / I TA NO.1941 /PUN/20 19 / ASSESSMENT YEAR : 2009 - 10 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 6, PUNE. ....... / APPELLANT / V/S. SHRI SATYASHEEL NANDLAL NAIK, HUF 878, SHUKRAWAR PETH, PUNE - 411 002. PAN : AAAHN5509B / RESPONDENT 2 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 . / ITA NO.1942/PUN/2019 / ASSESSMENT YEAR : 2009 - 10 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 6, PUNE. ....... / APPELLANT / V/S. KUNAL DHARMASHEEL N NAIK, L/H OF DHARMASHEEL N NAIK 878, SHUKRAWAR PETH, PUNE - 411 002. PAN : AIPPN3205R / RESPONDENT . / ITA NO.1943/PUN/2019 / ASSESSMENT YEAR : 2009 - 10 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 6, PUNE. ....... / APPELLANT / V/S. SMT. SHAKUNTALADEVEI N NAIK. 878, SHUKRAWAR PETH, PUNE - 411 002. PAN : ABMPN1383N / RESPONDENT . / ITA NO.1944/PUN/2019 / ASSESSMENT YEAR : 2009 - 10 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 6, PUNE. 3 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 ....... / APPELLAN T / V/S. SHRI NANDLAL NAIK, HUF 878, SHUKRAWAR PETH, PUNE - 411 002. PAN : AAFHN3477F / RESPONDENT A SSESSEE BY : SHRI S.N. PURANIK REVENUE BY : SHRI S.P. WALIMBE / DATE OF HEARING : 05 .06 .2020 / DATE OF PRONOUNCEMENT : 08 .0 6 .2020 / ORDER PER BENCH : THESE FIVE APPEALS PREFERRED BY THE REVENUE EMANATES FROM THE DIFFERENT ORDER S OF THE LD. CIT(APPEALS) - 4, PUNE DATED 27.09.2019 FOR THE ASSESSMENT YEAR 2009 - 10 AS PER THE GROUNDS OF APPEAL ON RECORD. 2. THE LD. DR FOR THE REVENUE AT THE VERY OUTSET SUBMITTED THAT ISSUES INVOLVED IN THESE TWO APPEALS ARE IDENTICAL AND THEREFORE, THESE TWO CASES ARE DEALT TOGETHER. SINCE FACTS COMMON AND ISSUES ARE SIMILAR, THESE CASES ARE BEING DISPOSED OF VIDE THIS CONSOLIDATED ORDER. 3. THE COMMON GROUNDS RAISED BY THE REVENUE IN THESE TWO APPEALS ARE AS FOLLOWS: 4 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING ADDITION MADE BY THE AO UNDER THE HEAD L ONG T ERM C APITAL G AIN ON SALE OF LAND ON THE BASIS OF THE REPORT RECEIVED FROM DVO INCORRECTLY HOLDING THAT AO DID NOT HAVE MANDATE TO REFER THE MATTER TO DVO FOR FAIR MARKET VALUE WHEREAS THE REFERENCE MADE TO DVO BY AO IS COVERED IN SUB CLAUSE (II) OF CLAUSE (B) TO SECTION 55A OF IT ACT, 1961 AND THEREFORE, AO WAS JUS TIFIED IN REFERRING THE MATTER TO DVO FOR VALUATION OF CAPITAL ASSET AS ON 01.04.1981 AND ADOPTING COST OF ACQUISITION AS PER THE REPORT OF THE DVO. 2. FOR THIS AND SUCH OTHER REASONS AS MAY BE URGED AT THE TIME OF HEARING THE ORDER OF THE LD. CIT(A) MAY BE VACATED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ALTER OR DELETE ANY OF THE ABOVE GROUNDS OF APPEAL DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE THE HONBLE TRIBUNAL. FOR THE SAKE OF CONVENIENC E, FIRST WE WOULD TAKE ITA NO.1941/PUN/2019 FOR ASSESSMENT YEAR 2009 - 10 AS LEAD CASE FOR ADJUDICATION. ITA NO.1941/PUN/2019 A.Y.2009 - 10 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME ON 31.08.2009 WITH AN INCOME OF RS.3,17,80,200/ - AND ASSESSMENT ORDER DATED 30.12.2011 WAS PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) ASS ESSING TOTAL INCOME AT RS.14,84,83,280/ - WHICH INCLUDED THE LONG TERM CAPITAL GAINS AT RS.14,82,08,800/ - FOR SALE OF PROPERTY OF WHICH THE ASSESSEE WAS A CO - OWNER HAVING A SHARE OF 16,693 SQ. MTRS. DURING THE ASSESSMENT PROCEEDINGS, REFERENCE WAS MADE TO T HE DISTRICT VALUATION OFFICER (DVO) - 1, MUMBAI U/S.55A OF THE ACT TO DETERMINE (A) THE FAIR MARKET VALUE OF THE PROPERTY AS ON THE DATE OF SALE AND (B) TO VERITY THE CORRECTNESS OF THE COST OF ACQUISITION AS ON 01.04.1981 ADOPTED ON THE BASIS OF THE APPROV ED VALUERS REPORT. SINCE 5 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 THE DVO EXPRESSED HIS INABILITY TO GIVE THE VALUATION REPORT BEFORE 30.12.2011, THE ASSESSMENT ORDER WAS PASSED IN ACCORDANCE WITH THE DIRECTIONS GIVEN BY THE JOINT COMMISSIONER OF INCOME TAX, RANGE - 5, PUNE U/S.144A OF THE ACT SUB JECT TO THE RECEIPT OF THE VALUATION REPORT OF DVO. 5. DURING FIRST APPELLATE PROCEEDINGS, THE LD. CIT(APPEALS) DELETED THE ADDITION MADE BY THE ASSESSING OFFICER AGAINST WHICH THE REVENUE IS IN APPEAL BEFORE US. 6. AT THE TIME OF HEARING THROUGH VIDEO C ONFERENCE, THE LD. DR SUBMITTED THAT THE LD. CIT(A) ERRED IN DELETING ADDITION MADE BY THE ASSESSING OFFICER UNDER THE HEAD LONG TERM CAPITAL GAIN ON SALE OF LAND ON THE BASIS OF THE REPORT RECEIVED FRO M DVO INCORRECTLY HOLDING THAT ASSESSING OFFICER DID N OT HAVE MANDATE TO REFER THE MATTER TO DVO FOR FAIR MARKET VALUE WHEREAS THE REFERENCE MADE TO DVO BY ASSESSING OFFICER IS COVERED IN SUB CLAUSE (II) OF CLAUSE (B) TO SECTION 5 5A OF THE ACT. THE LD. DR FURTHER SUBMITTED THAT ASSESSING OFFICER WAS JUSTIFIED IN REFERRING THE MATTER TO DVO FOR VALUATION OF CAPITAL ASSET AS ON 01.04.1981 AND ADOPTING COST OF ACQUISITION AS PER THE REPORT OF THE DVO. 7. ON THE OTHER HAND, THE LD. AR OF THE ASSESSEE HAS PLACED STRONG RELIANCE ON THE ORDERS OF THE LD. CIT(APPEALS ). 8. WE HAVE PERUSED THE CASE RECORDS AND HEARD THE RIVAL CONTENTIONS. WE HAVE ALSO GIVEN CONSIDERABLE THOUGHT TO THE FINDINGS OF THE LD. CIT(APPEALS). WE FIND THAT FOR ALL THESE ISSUES, THE LD. CIT(APPEALS) HAS ANALYZED 6 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 SUBSTANTIVE LAWS AS WELL AS JUDICIAL PRONOUNCEMENTS VIS - - VIS THE FACTS OF THE CASE. THE RELEVANT FINDINGS OF THE LD. CIT(APPEALS) ON THE ISSUES ARE AS FOLLOWS: 7.3 DECISION : THE OBSERVATIONS OF THE AO IN THE ASSESSMENT ORDER, SUBMISSIONS OF THE APPELLA NT AND THE MATERIAL ON RECORD HAVE BEEN CONSIDERED. THE GROUND OF APPEAL NOS.2, 3, 4 & 5 ARE TAKEN UP TOGETHER. WHILE DECIDING THE APPEAL OF THE APPELLANT AGAINST T HE ORDER U/ S 154 OF THE ACT IT HAS BEEN MENTIONED IN THE ORDER OF THIS OFFICE DATED 24.09.20 19 THEREIN THAT, 'SINCE THE APPEAL OF THE APPELLANT AGAINST THE ORDER U/S 143(3) OF THE ACT DA TED 30.12.2011, WHICH WAS SOUGHT TO BE RECTIFIED VIDE THIS ORDER, IS ALSO IN APPEAL ; THUS, THIS ISSUE OF DETERMINING LONG TERM CAPITAL GAINS ON RECEIPT OF THE REPORT O F THE D VO, 'WILL BE ADJUDICATED IN THE APPEAL OF THE APPELLANT AGAINST THE ORDER U/S 143(3) OF THE ACT - DATED 30.12.2011.' HENCE, THIS ISSUE IS BEING ADJUDICATED IN THIS APPEAL. 7.3.1 IN THE INSTANT CASE, THE APPELLANT ALONG WITH OTHER CO - OWNER S, HAD SOLD THEIR PROPERTY IN THE F.Y.2008 - 09. IN THE ASSESSMENT ORDER, THE AO ASSESSED THE LONG TERM CAPITAL GAINS OF THE APPELLANT AT RS.14,82,08,800/ - . DURING THE ASSESSMENT PROCEEDINGS, THE AO REFERRED THE PROPERTY TO THE DVO U/ S 55A OF THE ACT, VIDE H IS LETTER DATED 26 . 09.2011, FOR (A) VALUATION OF FMV AS ON TH E DATE OF SALE I.E. 4.09.2008 AND ALSO (B) TO VERIFY THE CORRECTNESS OF THE COST OF ACQUISITION AS ON 1.04.1981 ADOPTED ON THE BASIS OF THE APPROVED VALUER'S REPORT. SINCE THE ASSESSMENT WAS GETT ING BARRED BY LIMITATION OF TIME ON 31.12.2011 AND THE DVO CATEGORICALLY STATED THAT THE VALUATION REPORT COULD NOT BE SUBMITTED BY THAT DATE, THE AC PASSED TH E ASSESSMENT ORDER U/ S 143(3) OF THE ACT BY ASSESSING THE LONG TERM CAPITAL GAINS AT RS.14,82,08, 800/ - SUBJECT TO CHANGE ON RECEIPT OF THE VALUATION REPORT FROM THE DVO. THE DVO'S REPORT DATED 28.08.2015 WAS - RECEIVED AFTER THE DATE OF COMPLETION OF THE ASSESSMENT ORDER. THE DVO'S REPORT HAS BEEN FORWARDED TO THIS OFFICE BY THE AO. 7.3.2 D URING THE APPELLATE PROCEEDINGS, THE VALUATION REPORT OF THE DVO DATED 28.UB.2015 AND THE APPELLANT'S OBJECTIONS/ SUBMISSIONS THEREON HAVE BEEN DULY CONSIDERED. IN THE DVO'S VALUATION REPORT DATED 28.08.2015, (A) THE FMV OF THE ENTIRE PROPERTY, OF WHICH TH E APPELLANT WAS A CO - OWNER HAVING SHARE OF 16,693 SQ. MTRS., WAS DETERMINED AT RS . 40,20,54,000/ - AS ON 4.09.2008 AND (B) THE FMV AS ON 1.04.1981 WAS DETERMINED AT RS . 68,45,000/ - . IN THE LATEST SUBMISSIONS OF THE APPELLANT DATED 9.09.2019 (SUPRA), THE APPE LLANT HAS STATED SINCE THE APPEAL IS VERY OLD AND TO AVOID PROTRACTED LITIGATION, IT ACCEPTS THE VALUATION OF THE DVO AS OF 4.09.2008. HOWEVER, WITH REGARD TO THE VALUATION AS OF 1.04.1981, THE APPELLANT SUBMITS THAT THE VALUATION DETERMINED BY THE APPROVE D VALUER AS OF 1.04.1981 SHOULD BE TAKEN. 7.3.2. 1 IN VIEW OF THE ABOVE FACTS, AS FAR THE FMV AS ON 4.09.2008 IS CONCERNED, THE DVO HAS CORRECTLY VALUED THE PROPERTY AS ON 4.09.2008 AT RS . 40,20,54,000/ - , OF WHICH THE APPELLANT IS A CO - OWNER HAVING SHARE O F 16,639 SQ. MHOS. ACCORDINGLY, THE SALE CONSIDERATION OF THE APPELLANT'S 7 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 SHARE OF THE PROPERTY @ RS . 4806.67 (RS . 40,20,54,000 / - DIVIDED BY THE TOTAL AREA OF THE PROPERTY I.E. 83,645 SQ. MTRS.) WORKS OUT TO RS. 8,02,37,742/ - . THEREFORE, THE SALE CONSIDERAT ION OF THE APPELLANT'S SHARE OF THE PROPERTY, AS DETERMINED BY THE DVA, IS TAKEN AT RS. 8,02,37,742/ - . 7.3.3. NOW COMING TO THE QUESTION OF THE FMV AS ON 1.04.1981, THE DVA HAS DETERMINED THE FMV OF THE PROPERTY, OF WHICH THE APPELLANT IS A CO - OWNER, AT R S.68,45,000/ - AS ON 1.04.1981. THE APPELLANT HAS SUBMITTED THAT THE VALUATION OF THE APPROVED VALUER DETERMINING THE VALUE OF THE APPELLANT'S PROPERTY AT RS.50,91,000/ - SHOULD BE TAKEN AS THE COST OF ACQUISITION. HE HAS SUBMITTED THAT THE AMENDMENT IN SECT ION 55A OF THE ACT HAD TAKEN PLACE W.E.F. 1.07.2012 AND THE SAME WAS HELD TO BE PROSPECTIVE BY THE HON'BLE BOMBAY HIGH COURT IN THE CASES OF DAULAL MOHTA (HUF) 360 ITR 680, PUJA PRINTS 360 ITR 697 A ND DECISION OF THE HON'BLE PUNE ITAT IN THE CASES OF ARJUN DADA KHARAIE IN ITA NO. 185/PN/2016, BHUDEVI GORANTYAL IN IT A NO . 1036/PUN/2015 AND MRS. ANJALI BHARAT KABRA 75 TAXMANN.COM 5, PUNE. 7.3.3. 1 IN THIS REGARD, IT IS OBSERVED THAT THE DVO WHILE DETERMINING THE PMV OF THE PROPERTY AS ON 1.04.1981, HAS DULY CONSIDERED THE OBJECTIONS RAISED THEREIN BY THE APPELLANT IN PART 8 OF HIS REPORT, AND AFTER GIVING THE APPELLANT DUE OPPORTUNITY TO BE HEARD, PREPARED HIS VALUATION REPORT. WITH REGARD TO THE APPELLANT'S OBJECTION REGARDING THE APPLICABILITY OF THE DECISI ON OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF DAULAL MOHTA (HUF), THE FOLLOWING' COMMENTS HAVE BEEN GIVEN: 5. OBJECTION : VALUATION AS AT 01.04.1981 WE HAVE SUBMITTED A LETTER DATED 21.05.2015 (COPY ENCLOSED ) ACKNOWLEDGED BY YOUR OFFICE, WHEREIN BOMBAY HIGH COURT DECISIONS ARE QUOTED. IT IS LEARNT THAT DECISION IN THE CASE OF DOULAL MOHTA HUF 360 ITR 561 IS ACCEPTED BY THE DEPARTMENT. REPLY : THE IMPLICATION OF DECISION IN THE CASE OF DOULAL MOHTA HUF 360 I TR 561 FO R THE INSTANT CASE IS TO BE SEEN /REVIEWED BY ASSESSING OFFICER . 7.3.3.2 IN LIGHT OF THE DVO'S COMMENT ON THE APPLICABILITY OF THE DECISION OF THE CASE OF DAULAL MOHTA (HUF) IN THE APPELLANT'S CASE, THE ISSUE IS TAKEN UP FOR CONSIDERATION. ON PERUSAL OF THE LETTER OF REFERENCE BY THE AO TO THE DV O DATED 26.09.2011, IT IS OBSERVED THAT AS FAR AS TH E VALUATION AS ON 1.04.1981 IS CONCERNED, THE AO HAS REFERRED TO THE DVO STATING, '03. FURTHER, THE COST OF ACQUISITION AS ON 1.04.1981 IS ADOPTED ON THE BASIS OF VA LUER'S REPORT, THE CORRECTNESS OF WHICH REQUIRES VERIFICATION,' AS PER THE PROVISIONS OF SECTION 55A OF THE A CT FOR THE YEAR UNDER CONSIDERATION, REFERENC E CAN BE MADE BY THE AO TO THE VALUATION OFFICER FOR ASCERTAINING THE PMV OF A CAPITAL ASSET WHERE THE AO I S OF THE OPINION THAT THE VALUE OF THE ASSET AS CLAIMED BY THE APPELLANT, IS LES S THAN ITS PMV. HOWEVER, IN THE INSTANT CASE, THE AO HAS REFERRED THE MATTER T O THE DVO TO VERIFY THE CORRECTNESS OF THE VALUE ADOPTED BY THE VALUER'S REPO RT AS ON 1.04.1981. THIS IS NOT IN LINE WITH THE PROVISIONS OF SECTION 55A OF T HE ACT AS THE SECTION IMPLIES THAT THE AO SHOULD BE OF THE CONSIDE RED 8 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 OPINION THAT THE VALUE OF ASSET CLAIMED BY THE APPELLANT IS LESS THAN ITS PMV AND NOT FOR ANY VERIFICATION PURPOSE. 7.3.3.3 MOREOVER, IN THE DVO'S REPORT, THE PMV AS ON 1.04.1981 WAS DETERMINED AT RS.68,45,000/ - WHICH WAS MUCH LOWER THAN THE VALUATION OF THE APPROVED VALUER OF THE AGGREGATE AMOUNT OF RS.2,27,08,814/ - . THEREFORE, IN LIGHT OF THE EXISTING PRO VISIONS OF SECTION 55A OF THE ACT, RELEVANT FOR THE A.Y. UNDER CONSIDERATION, THE AO DID NOT HAVE THE MANDATE TO REFER THE MATTER FOR VALUATION OF FMV AS ON 1.04.1981 TO THE DVO U/S 55A OF THE ACT AMENDMENT TO SECTION 55A OF THE ACT BY THE FINANCE ACT, 201 2 WHEREIN THE WORDS 'IS LESS THAN ITS FAIR MARKET VALUE' WAS SUBSTITUTED BY 'IS AT VARIANCE 'WITH ITS FAIR MARKET VALUE' IS W.E.F. 1.07.2012 WHICH WAS NOT APPLICABLE FOR THE A.Y. IN THE INSTANT CASE I.E . A.Y. 2010 - 11 WITH RESPECT TO SEEKING VALUATION REPORT FROM THE DVO FOR THE FMV AS ON 1.04.1981. 7.3.4 FURTHER, THE VARIOUS DECISIONS RELIED UPON BY THE APPELLANT I.E. DAULAL MOHTA (HUF) 360 ITR 680 (BOM), CIT VS. PUJA PRINTS 360 ITR 697 (BOM ), ARJUN DAD A KHARAIE IN ITA NO. 185/PN/2016, BHUDEVI CORANTUAL IN ITA NO . 1036/PUN/2015 AND MRS. ARZJALI BHARAI KABRA 75 TAXMANN.COM 5 (PUNE) HAVE CLEAR LY HELD THAT WHERE THE VALUE AS DETERMINED BY DVO AS ON 1.04.1981 WAS LESSER THAN THE VALUE AS DECLARED BY APPELLANT AS ON 1.04.1981, REFERENCE TO DVO U/S 55A OF THE ACT WAS NOT WARRANTED. HENCE, IN LIGHT OF THE ABOVE FACTS AND RESPECTFULLY FOLLOWING THE DECISIONS OF THE HIGHER JUDICIAL AUTHORITIES, THE FMV AS ON 1.04.1981 VALUED AT RS. 50,91,000/ - BY THE APPROVED VALUER , IN HIS REPORT DATED 17.08.2009 IN THE CASE OF THE APPELLANT, IS ADOPTED. IN LIGHT OF THE ABOVE FACTS, THE LONG TERM CAPITAL GAINS IN THE CASE OF THE APPELLANT IS RECOMPUTED AS UNDER: SALE CONSIDERATION OF 16693 SQ. MTRS 8,02,37,742/ - ( A S PER DVO VALUATION @ RS.4806.67 PER SQ. MTRS. LESS : INDEXED COST OF ACQUISITION 3,15,74,810/ - ( AS PER APPROVED VALUERS REPORT @ RS.352 PER SQ. MTRS.) LONG TERM CAPITAL GAINS 4,86,62,932/ - 7.3.5 HENCE, IN LIGHT OF THE ABOVE, THE LONG TERM CAPITAL GAINS IS RESTRICTED TO RS . 4,86,62,932/ - ACCORDINGLY. THEREFORE, GROUND OF APPEAL NOS. 2, 3, 4 & 5, FILED BY THE APPELLANT, ARE ACCORDINGLY PARTLY ALLOWED. FROM THE ABOVE, IT IS EVIDENT THAT THE LD. CIT(APPEALS) HAS GIVEN A CATEGORIC FINDINGS ON THE ISSUE AFTER PLACING RELIANCE ON THE VARIOUS JUDICIAL PRONOUNCEMENTS AND THEREFORE, THERE IS NO REASON TO INTERFERE WITH THE 9 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 FINDINGS OF THE LD. CIT(APPEALS) AND THE SAME IS THEREBY UPHELD. THUS, THE GROUNDS RAISED IN THE APPEALS ARE DISMISS ED. 9. IN THE RESULT, A PPEAL OF THE REVENUE IN ITA NO.1941/PUN/2019 IS DISMISSED. ITA NO.1943/PUN/2019 A.Y.2009 - 10 10. SINCE FACTS COMMON AND ISSUES ARE SIMILAR, OUR DECISION RENDERED IN ITA NO.1941/PUN/2019 SHALL MUTATIS MUTANDIS APPLY IN ITA NO.1943/PUN/2019. IN THIS CASE ALSO, THE FINDINGS OF THE LD. CIT(APPEALS) IS UPHELD AND GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 11. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE IN ITA NO.1941/PUN/2019 AND ITA NO.1943/PUN/2019 ARE DISMISSED . ITA NO. 1934/PUN/2019, ITA NO.1942/PUN/2019 & ITA NO.1944/PUN/2019 A.Y. 2009 - 10 12 . THE LD. AR OF THE ASSESSEES THROUGH VIDEO CONFERENCE SUBMITTED AT THE OUTSET THAT THE APPEALS OF REVENUE IN ITA NO.1934/PUN/2019, ITA NO.1942/PUN/2019 AND ITA NO.1944/PUN/2019 ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)], DATED 08 - 08 - 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 REVISING THE UPWARD MONETARY LIMITS FOR FILING OF APPEALS IN INCOME TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER CBDT CIRCULAR NO.03/2019 DATED 11.07.2018 FIXED MONETARY LIMIT FOR FILING OF 10 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 APPEALS BEFORE THE TRIBUNAL AT RS.20 LA KHS. SUCH LIMIT HAS BEEN ENHANCED IN THE RECENT CBDT CIRCULAR DATED 08.08.2019 FROM RS.20 LAKHS TO RS. 50 LAKHS. THE LD. AR OF THE ASSESSEE POINTED THAT TAX EFFECT INVOLVED INCLUDING SURCHARGE AND CESS IN ALL THE A PPEALS IS LESS THAN RS.50 LAKHS I.E. IN IT A NO. 1942/PUN/2019 ( RS.10,58,856/ - ), ITA NO.1944/PUN/2019 (RS.44,92,696/ - ) AND ITA NO.1934/PUN/2019 ( LESS THAN RS.50 LAKHS). 1 3 . THE LD. DR FAI RLY ADMITTED THAT IN THESE THREE APPEALS BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.50 LAKHS. 1 4 . BOTH SI DES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF LD. CIT(APPEALS) IN DELETING THE ADDITIONS. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THESE APPEALS IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142 /2007 - ITJ (PT)] DATED 08 - 08 - 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 THE REBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA) THE PRESENT APPEA LS OF THE REVENUE ARE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 15 . 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 11 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 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. 16 . IN THE RESULT, THE APPEALS OF THE REVENUE IN ITA NO.1934/PUN/2019, ITA NO.1942/PUN/2019 AND ITA NO.1944 / PUN/2019 ARE DISMISSED. 1 7. IN THE COMBINED RESULT , ALL THE APPEALS OF THE REVENUE IN ITA NO.1934/PUN/2019, ITA NO.1941/PUN/2019, ITA NO.1942/PUN/2019, ITA NO.1943/PUN/2019 AND ITA NO.1944/PUN/2019 ARE DISMISSED. ORDER PRO NOUNCED ON 8TH DAY OF JUNE , 20 20 . SD/ - SD/ - R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 8 TH JUNE , 2020. SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 4, PUNE. 4. THE PR. CIT - 3, PUNE. 5 . , , , / DR, ITAT, A BENCH, PUNE. 6 . / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 12 ITA NO S . 1934 & 1941 TO 1944 /PUN/20 19 A.Y. 2009 - 10 DATE 1 DRAFT DICTATED ON 05 .0 6 .2020 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 05 .06 .2020 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER