DCIT Central Circle 2(4), CHENNAI V. Kerry Reliable Logistics P Ltd., CHENNAI

ITA 1950/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2069 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 18-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAILENDRA MAMIDIPCIT
• Assessee Lawyers: S SRIDHAR
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH, CHENNAI [ , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NOS.1950 TO 1952/CHNY/2018 ( [ [ / ASSESSMENT YEARS: 2008-09 TO 2010-11) THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(4), CHENNAI 34. VS M/S. KERRY RELIABLE LOGISTICS P. LTD., NEW NO.92, OLD NO.287, EMR COMPLEX, THAMBU CHETTY STREET, CHENNAI 600 001. PAN: AAACR4683H ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI SAILENDRA MAMIDI, PCIT / RESPONDENT BY : SHRI S. SRIDHAR, ADVOCATE /DATE OF HEARING : 19.06.2019 /DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER BENCH: THE REVENUE FILED THESE APPEALS AGAINST THE COMMON ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-18, CHENNAI IN ITA NOS.101,102 & 103/16-17 DATED 05.03.2018 FOR THE ASSESSMENT YEARS 2008-09, 2009-10 & 2010-11. 2. M/S. KERRY RELIABLE LOGISTICS PVT. LTD., (KERRY LOGISTICS INDIA PVT. LTD.,), THE ASSESSEE IS ENGAGED IN THE BUSINESS OF FREIGHT 2 ITA NOS.1950 TO 1952/CHNY/2018 FORWARDING AND CARGO HANDLING SERVICES. WHILE MAKING THE ASSESSMENTS FOR THE ASSESSMENT YEARS 2008-09, 2009-10 & 2010-11, THE LD.AO DISALLOWED THE PAYMENT OF SOFTWARE LICENSE FEE MADE U/S.40(A)(IA) OF THE ACT. AGGRIEVED THE ASSESSEE FILED APPEALS BEFORE THE LD.CIT(A). THE LD.CIT(A) ALLOWED THE APPEALS. AGGRIEVED AGAINST THOSE ORDER, THE REVENUE FILED THESE APPEALS. 3. AT THE TIME OF HEARING, THE LD.AR FILED A TAX EFFECT COMPUTATION STATEMENT FOR THESE ASSESSMENT YEARS WHICH SHOWN THAT THE TAX EFFECT IS BELOW RS.20 LAKHS IN EACH OF THE YEAR AND HENCE THE REVENUES APPEALS WOULD BE COVERED BY THE CBDT CIRCULAR NO.3/2018 DATED 11.07.2018, FIXING THE MONETARY LIMIT OF RS.20 LAKHS IN RELATION TO THESE APPEALS. THE LD.DR ON VERIFICATION ADMITTED THAT THE TAX EFFECT INVOLVED IN ALL THESE APPEALS ARE LESS THAN RS.20 LAKHS. 4. ON HEARING BOTH SIDES, WE FIND THAT THE TAX EFFECT IN THESE CASES IS LESS THAN RS. 20 LAKHS. THE CBDT IN ITS CIRCULAR NO. 3/2018 DATED 11.07.2018 INSTRUCTED ITS OFFICERS TO WITHDRAW ALL THE APPEALS PENDING BEFORE THE ITAT WHERE THE TAX EFFECT IS LESS THAN RS. 20 LAKHS. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THIS CIRCULAR OF CBDT IS BINDING ON THE OFFICERS OF THE DEPARTMENT. THEREFORE, THE REVENUE 3 ITA NOS.1950 TO 1952/CHNY/2018 CANNOT PROCEED FURTHER IN THESE APPEALS. ACCORDINGLY, THESE APPEALS STANDS DISMISSED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE19TH JUNE, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 19 TH JUNE, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. [ /GF ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER