DCIT, CHENNAI V. Renu Sarin, CHENNAI

ITA 2154/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1464 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 19-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M S NETHRAPALJCITD R
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SL. NO. ITA NO. ASSESSMENT YEAR APPELLANT RESPONDENT 1 1541/CHNY/2019 2013-14 JCIT,CORP CIRCLE-2(2), CHENNAI THE INVESTMENT TRUST OF INDIA LTD., 7, B BLOCK,1 ST FLOOR,ALSA SAMAR, 2 ND AVENUE,ANNA NAGAR EAST,CHENNAI-102 PAN AABCR 6577 K 2 1539/CHNY/2019 2010-11 ACIT,NON-CORP CIRCLE 15 CHENNAI. S.V.RAMAKRISHNAN, 68/58,1 ST AVENUE,INDIRA NAGAR, ADYAR,CHENNAI-20 PAN ADOPR 9808 C 3 1542/CHNY/2019 2009-10 JCIT( OSD ), LTU-1, CHENNAI. SUNDARAM FINANCE , 21,PATULLOS ROAD,CHENNAI-2. PAN AAACS 4944 A 4 5 6 7 8 9 2151/CHNY/2019 2152/CHNY/2019 2153/CHNY/2019 2154/CHNY/2019 2155/CHNY/2019 2156/CHNY/2019 2009-10 2011-12 2012-13 2013-14 2014-15 2015-16 DCIT,CENTRAL CIRCLE-2(1) CHENNAI RENU SARIN , 15/4,MASILAMANI ROAD, BALAJI NAGAR,ROYAPETTAH, CHENNAI 600 014. PAN ADXPR 7379 F 10 2197/CHNY/2019 2016-17 DCIT,CIRCLE-3,RANGE-3, TRICHY. S.RAMACHANDRAN (HUF), NEW NO.3/340,MUTHUPATTINAM(SOUTH), KULAVAIPATTI,ALANGUDI TALUK PUDUKKOTTAI 622 201. PAN AAUHS 9811 B 11 2199/CHNY/2019 2016-17 DCIT,CIRCLE-3,RANGE-3, TRICHY. S.MANICKAVASAGAM, 109,RAIL NAGAR,AMBIKAPURAM,GOLDEN ROCK, TRICHY 620 015. PAN AIJPM 7874 R 12 716/CHNY/2019 2015-16 DCIT,NON-CORP CIRCLE 10(1) CHENNAI. VALSALA VENUGOPAL, 306, 3 RD MAIN ROAD,BABA NAGAR,VILLIVAKKAM, CHENNAI 600 049. PAN AAGPV 1946 C 13 14 3355/CHNY/2018 3356/CHNY/2018 2009-10 2014-15 DCIT,CENTRAL CIRCLE-2(4) CHENNAI SWAMINATHAN ENTERPRISES P LTD., 143,PUDUPAKKAM VILLAGE, VANDALUR,KELAMBAKKAM ROAD, KANCHEEPURAM DISTRICT PAN AAICS 2132 A 15 1732/CHNY/2019 2014-15 ITO, NON CORPORTE WARD 1(5), CHENNAI-34. S.EASWARI, 9/11,LINK ROAD, KOTTUR GARDEN, CHENNAI 600 085. PAN AABPE 7818 D TAX EFFECT (15) CASES BELOW 50 LAKHS :- 2 -: / APPELLANT BY : MR.M.S.NETHRAPAL,JCIT,D.R /RESPONDENT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.N O. NAME OF COUNSEL 1 3 4 TO 9 MR.SAROJ PARIDA,ADVOCATE MR.SAROJ PARIDA,ADVOCATE MR.K.RAVI,ADVOCATE 13- 14 R.MEENAKSHISUNDARAM / DATE OF HEARING : 22 - 08 - 2019 / DATE OF PRONOUNCEMENT : 22 - 08 - 2019 / O R D E R PER BENCH : THESE 15 APPEALS ARE FILED BY VARIOUS ASSESSING OFF ICERS, ALL THESE APPEALS CALL INTO QUESTION CORRECTNESS OF THE RELIE F GRANTED TO THE TAXPAYERS BY THE COMMISSIONERS OF INCOME TAX (APPEA LS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE A PPEALS DOES NOT EXCEED RS50,00,000/- IN EACH OF THESE APPEALS. 2. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC .142/2007-ITJ(PT) DATED 8TH AUGUST, 2019, THE INCOME TAX DEPARTMENT H AS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECIS IONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST T HE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OV ERALL TAX EFFECT, TAX EFFECT (15) CASES BELOW 50 LAKHS :- 3 -: EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE, IS RS 50,00,000 OR LESS. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE CONCESSION BY THIS CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRU CTUOUS. 4. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMIT S 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. 5. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STA NDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO . 3/2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8THAUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, TH E TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) TAX EFFECT (15) CASES BELOW 50 LAKHS :- 4 -: 1 BEFORE APPELLATE TRIBUNAL 50,00,000 2 BEFORE HIGH COURT 1,00,00,000 3 BEFORE SUPREME COURT 2,00,00,000 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTE D ISSUES IN THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASS ESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EX CEEDS 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 IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA-3. F URTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO A PPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPEC IFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEP ARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INT ACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CRO SS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS / CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D. TAX EFFECT (15) CASES BELOW 50 LAKHS :- 5 -: 7. THE HONBLE SUPREME COURT IN THE CASE OF THE C OMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., IN SL P 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 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 PETITIO N IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. 8. LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AN D TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE C OVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CB DT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBER TY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMAR ILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY O THER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGAR D. 9. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING TH E PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF THE CO MMISSIONER OF INCOME TAX EFFECT (15) CASES BELOW 50 LAKHS :- 6 -: TAX-5,NEW DELHI VS. KESHAV POWER LTD., REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE. 10. IN THE RESULT, ALL THE APPEALS OF REVENUE ARE DISMISSED AS WITHDRAWN. PRONOUNCED IN THE OPEN COURT TODAY ON 22 ND AUGUST, 2019. SD/- SD/- ( ) ( INTURI RAMA RAO ) , /ACCOUNTANT MEMBER ( / ) (GEORGE MATHAN) 0 , /JUDICIAL MEMBER /CHENNAI, 1 /DATED: 22 ND AUGUST, 2019. K S SUNDARAM 023 43 /COPY TO: 1. /APPELLANT 4. 5 /CIT 2. /RESPONDENT 5. 3 00 /DR 3. 5 ( ) /CIT(A) 6. / /GF