ITO, Wd 1(3), Asansol V. M/s Nuni Chinchura Pachai & C. S. Shop, Burdwan

ITA 1985/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7080 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 22-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRI P.M.JAGTAP, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.1985/KOL/2019 ASSESSMENT YEAR:2015-16 INCOME TAX OFFICER, WARD-1(3), GR. FLOOR, SAHANA APARTMETN, LOWER CHELIANGA, ASANSOL-713304 / V/S . NUNI CHINCHURIA PACHWAI & C.S. SHOP VILLAGE NUNI CHINCHURIA DIST. PASCHIM BARDHAMAN, PIN-713341 [ PAN NO. AAAAN 2551 L ] /APPELLANT .. /RESPONDENT /BY APPELLANT SMT. RANU BISWAS, ADDL. CIT-DR /BY RESPONDENT NONE /DATE OF HEARING 03-02-2020 /DATE OF PRONOUNCEMENT 05-02-2020 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2015-16 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-ASANSOLS ORDE R DATED 10.06.2019, PASSED IN CASE 87/CIT(A)/ASL/ACIT/WD-1(3)/ASL/17-18, INVOLVIN G PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 OF THE ACT; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT THE ASSESSEES B EHEST. IT IS ACCORDINGLY PROCEEDED EX PARTE. THE CASE IS NOW TAKEN UP FOR AD JUDICATION ON MERITS. ITA NO.1985/KOL/2019 A.Y. 2015- 16 ITO WD-1(3), ASL VS. NUNI CHINCHURI A PACHWAI & C.S. SHOP PAGE 2 2. IT IS SEEN AT THE OUTSET THAT THE TAX EFFECT OF 78,68,780/-ON THE DISPUTED ADDITIONS BEFORE US IS LESS THAN RS. 50 LACS AS PRE SCRIBED IN THE CBDTS LATEST CIRCULAR NO17/2019 DATED 08.08.2019. IT WILL BE PER TINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCULAR AS FOLLOWS:- 2 . AS A STEP TOWARD FURTHER MANAGEMENT OF LITIGATION , IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50,00,000 2. BEFORE HIGH COURT 1,00,00,000 3. BEFORE SUPREME COURT 2,00,00,000 3.1 WE FIND THAT INTENTION BEHIND THE CIRCULAR NO17 /2019 DATED 08.08.2019 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS- -VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSES SMENT YEAR IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF, THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES AR ISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3 . NO. APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT I S LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF C OMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENTS YEAR , NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CAS E WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EAC H ASSESSEE SHALL BE DEALT WITH SEPARATELY. 3.2. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DATED 0 8.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, WE DO NOT SEE THIS CASE FALLIN G UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR PER SE . WE ALSO FIND THAT THIS CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AS WELL. H ONBLE APEX COURT IN COMMISSIONER OF CUSTOMS VS IND IAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) HAS SETTLED THE LAW THAT CBDTS CIRCULARS ARE VERY MUCH ITA NO.1985/KOL/2019 A.Y. 2015- 16 ITO WD-1(3), ASL VS. NUNI CHINCHURI A PACHWAI & C.S. SHOP PAGE 3 BINDING ON REVENUE AUTHORITIES. WE THUS HOLD THAT T HIS REVENUES APPEAL RAISING SOLE ISSUE OF 78,68,780/- DESERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT. WE MAKE IT CLEAR THAT IT SHALL VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RECTIFICATION IN CASE IT IS FOUND THAT ANY OF THE APPEAL INVOLVE OPE RATIONS OF EXCEPTION CLAUSES IN THE TAX EFFECT CIRCULAR AS PER LAW. 4. THIS REVENUES APPEAL IS DISMISSED FOR INVOLVING LOWER THAN THE PRESCRIBED MINIMUM TAX EFFECT. ORDER PRONOUNCED IN OPEN COURT ON 05/02/2020 SD/- SD/- ( !) (#$ ') (P.M.JAGTAP) (S.S.GODARA ) VICE PRESIDENT JUDICIAL MEM BER *DKP-SR.PS ( - 05/02/2020 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ITO WD-1(3), GROUND FLOOR SAHANA APARTME NT, LOWER CHELIANGA, A SANSOL-713304 2. /RESPONDENT-NUNI CHINCHURIA PACHWAI & C S SHOP, VIL LAGE-NUNI, CHINCHURIA DIST . PASCHIM BARDHAMAN,PIN-713341 3. + . / CONCERNED CIT 4. . - / CIT (A) 5. / $$+ , + / DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ +,