Income Tax Officer Ward-1(5), Davangere V. Shri G M Ujjanna , Davangere

ITA 2131/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7583 (ITAT-BANGALORE)
• Duration Of Justice: 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 06-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BALAKRISHNAN
• Assessee Lawyers: V SRINIVASAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE T RIBUNAL BANGALORE BENCH SMC-A, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNANT MEMBER ITA NO.2131 (BANG) 2018 (ASSESSMENT YEAR : 2010 11) THE INCOME TAX OFFICER, WARD 1 (5), DAVANGERE. APPELLANT VS SHRI G. M. UJJANNA, CONTRACTOR, BORAGONHANAHALLI VILLAGE, IGOOR POST, DEVANGERE TALUK AND DISTRICT. PAN. AAGPU7753G RESPONDENT ASSESSEE BY : SHRI V. SRINIVASAN, ADVOCATE REVENUE BY : SHRI BALAKRISHNA N., ADDL. CIT (DR) DATE OF HEARING : 24-07-2018 DATE OF PRONOUNCEMENT : 31-07-2018 O R D E R PER A. K. GARODIA, A.M.: THIS APPEAL IS FILED BY THE REVENUE AND IT IS DIREC TED AGAINST THE ORDER OF CIT (A) DAVANGERE DATED 20.03.2018 FOR A. Y. 2010 11. 2. AT THE VERY OUTSET, IT IS SUBMITTED BY THE LEARN ED AR OF THE ASSESSEE THAT THE TAX EFFECT IN THE PRESENT CASE IS BELOW RS. 20 LACS AND THEREFORE, THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFE CT. HE SUBMITTED THAT AS PER THE LATEST CBDT INSTRUCTIONS ISSUED BY WAY OF CIRCU LAR NO. 3/2018 DATED 11.07.2018, THE REVENUE SHOULD NOT FILE ANY APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS BELOW RS. 20 LACS. HE FURTHER POINTED OUT THAT THIS CIRCULAR IS APPLICABLE TO ALL PENDING APPEALS ALSO AS PER PARA 13 OF THIS CIRCULAR. IN REPLY, LEARNED DR OF THE REVENUE COULD NOT SHOW THAT THE TAX EFFECT I S NOT BELOW RS. 20 LACS. 3. I HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNED AR OF THE ASSESSEE. I FIND THAT AS PER THE ASSESSMENT ORDER, RETURNED INCOME I S RS. 383,490/- AND THE ITA NO. 2131(BANG)2018 2 ASSESSED INCOME IS RS. 46,55,540/- AND HENCE, THE T OTAL ADDITION IS OF RS. 42,72,050/- AND TAX EFFECT ON THIS @ 30% COMES TO R S. 12,81,615/- PLUS CESS @ 3%. EVEN IF THE ENTIRE ADDITIONS ARE DELETED BY C IT (A) AND THE REVENUE IS IN APPEAL FOR ALL SUCH DELETIONS, THEN ALSO THE TAX EF FECT OF THE APPEAL OF REVENUE IS BOUND TO BE MUCH BELOW RS. 20 LACS. HENCE, THIS AP PEAL OF THE REVENUE IS DISMISSED BECAUSE OF LOW TAX EFFECT. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (A.K. GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED, THE 31 ST JULY, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.