ACIT, Circle-2(1), Cuttack V. M/S. Computer Lab, Cuttack

ITA 210/CTK/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8856 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 25-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S M KESHMAMAT
• Assessee Lawyers: SUBHRAJEET JENA
• Keywords: Tax effect
• Section: 271(1)(c); 201; 68

Judgement Text

P A G E 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO . 210 /CTK/201 9 ASSESSMENT YEAR : 201 3 - 14 ACIT, CIRCLE 2(1), CUTTACK VS. M/S. COMPUTER LAB, 2 ND FLOOR, MEGHAMALA COMPLEX, BAJRAKABATI ROAD, CUTTACK PAN/GIR NO. AADFC 0750 A (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI SUBHRAJEET JENA , AR REVENUE BY : SHRI S.M.KESHMAMAT , CIT DR DATE OF HEARING : 14 / 01 / 20 20 DATE OF PRONOUNCEMENT : 14 / 01 /20 20 O R D E R PER C.M.GARG,JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A), CUTTACK DATED 28.3.2019 FOR THE ASSESSMENT YEAR 2013 - 14. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE LD CIT(A) WAS NOT JUSTIFIED IN DELETING THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT IMPOSED DUE TO (I) NON - DISCLOSURE OF RECEIPTS OF RS.50,562/ - FROM M/S. HINDUSTAN UNILEVER LTD., AND (II) UNSECURED LOAN OF RS.26 ,24,448/ - ADDED UNDER SECTION 68 OF THE I.T.ACT. 3. AT THE OUTSET, LD A.R. OF THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.50 LAKHS AND, THEREFORE, IN VIEW OF CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019, THE SAME IS NOT MAINTAINABLE AND SHOULD BE DISMISSED. ITA NO.210/CTK/2019 ASSESSMENT YEAR : 2013 - 14 P A G E 2 | 4 4. WE FIND THAT CBDT VIDE CIRCULAR NO .17/2019 IN F.NO.279/MISC.142/2007 - ITJ(PT) DATED 8TH AUGUST, 2019, HAS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECISIONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMI TS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST THE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OVERALL TAX EFFECT, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS IN DISPUTE, IS RS 50,00,000/ - OR LESS. 6. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 7. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO. 3/2018 (SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. 8. THE HON'BLE SUPREM E COURT IN THE CASE OF THE COMMISSIONER OF INCOME TAX - 5,NEW DELHI VS. KESHAV POWER LTD., IN SLP NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)TMI 811(SC) HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.08.2019 AND HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: 'SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LESS THAN RS.2 CRORES, GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT, WE SEE NO REASON TO INTERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITION IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN'. ITA NO.210/CTK/2019 ASSESSMENT YEAR : 2013 - 14 P A G E 3 | 4 9. LEARNED D.R. SUBMITS THAT LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEAL AND RESTORATION OF THE APPEAL IN THE CASE: (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. 10. WE ACCEPT THE REQUEST OF LD D.R. WE MAKE IT CLEAR THAT THE APPELLA NT SHALL BE AT LIBERTY TO POINT OUT THE CASE WHICH IS WRONGLY INCLUDED IN THE APPEAL SO SUMMARILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS OR FOR ANY OTHER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGARD. 11. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE HON'BLE SUPREME COURT IN THE CASE OF THE COMMISSIONER OF INCOME TAX - 5, NEW DELHI VS. KESHAV POWER LTD. (SUPRA) AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, THE APPEAL FILED BY THE REVENUE IS FOUND TO BE NON - MAINTAINABLE AND HENCE, DISMISSED. 12. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 14 / 01 /20 20 . S D/ - SD/ - (LAXMI PRASAD SAHU) ( CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 14 / 01 /20 20 B.K.PARIDA, SPS ITA NO.210/CTK/2019 ASSESSMENT YEAR : 2013 - 14 P A G E 4 | 4 COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK 1. THE APPELLANT : ACIT, CIRCLE 2(1), CUTTACK 2. THE RESPONDENT. M/S. COMPUTER LAB, 2 ND FLOOR, MEGHAMALA COMPLEX, BAJRAKABATI ROAD, CUTTACK 3. THE CIT(A) - CUTTACK 4. PR.CIT , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//