Deputy Commissioner of Income-tax, V. Smt. Sujata Santosh Gawade, Pune

ITA 2194/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5297 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 21-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR VIVEK AGGARWAL
• Assessee Lawyers: RAJEEV THAKKAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 2194 /P U N/201 6 / ASSESSMENT YEAR : 20 10 - 11 DY. COMMISSIONER OF INCOME TAX, CIRCLE 8, PUNE ....... / APPELLANT / V/S. SMT. SUJATA SANTOSH GAWADE, M/S. MAHALAXMI CONSTRUCTION, E - 16, SANGAM GARDEN VADA ROAD, A/P RAJGURUNAGAR, KHED, PUNE 410505 PAN : AFMPB8935J / RESPONDENT ASSESSEE BY : SHRI RAJEEV THAKKAR REVENUE BY : DR. VIVEK AGGARWAL / DATE OF HEARING : 2 5 - 07 - 201 8 / DATE OF PRONOUNCEMENT : 2 5 - 0 7 - 201 8 / ORDER PER VIKAS AWASTHY, JM : TH E APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 9 , PUNE DATED 30 - 06 - 2016 FOR THE ASSESSMENT YEAR 20 10 - 11. 2. SHRI RAJEEV THAKKAR APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON 2 ITA NO . 2194/PUN/2016, A.Y. 2010 - 11 ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT C IRCULAR NO. 3/2018, DATED 11 - 07 - 2018. THE LD. AR FURNISHED WORKI NG OF TAX EFFECT INVOLVED IN THE APPEAL. 3. DR. VIVEK AGGARWAL REPRESENTING THE DEPARTMENT SUBMITTED THAT AS PER THE WORKING OF ASSESSING OFFICER THE TAX EFFECT INVOLVED IN THE APPEAL IS RS.21,47,721/ - . 4. BOTH SIDES HEARD. THE ASSESSEE HAS FURNISH ED CALCULATION OF TAX EFFECT INVOLVED IN THE APPEAL BY REVENUE. THE SAME IS REPRODUCED AS UNDER: SR. NO. PARTICULARS AMOUNT (RS.) 1 AMOUNT IN DISPUTE AS PER DEPARTMENT APPEAL 63,98,347/ - 2 TAX LIABILITY - (A) BASIC TAX @ 30% 19,19,504 (B) SURCHARGE (NO SURCHARGE AS PER CBDT CIRCULAR DATED 11.01.2010 ATTACHED) - (C) EDUCATION CESS @ 3% OF (A) 57,585 3 TAX EFFECT AS PER DEPARTMENT APPEAL 19,77,089 THE LD. AR POINTED THAT IN THE ASSESSMENT YEAR UNDER APPEAL THERE WAS NO LEVY OF SURCHARGE ON INDIVIDUALS, HUF AND AOP. TO SUPPORT HIS SUBMISSIONS THE LD. AR FURNISHED THE COPY OF CIRCULAR NO. 1/2010 DATED 11 - 01 - 2010. 5. THE CBDT VIDE C IRCULAR NO. 3/2018, DATED 11 - 07 - 2018 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE, AS WELL AS THE APPEALS PENDING BE FORE THE TRIBUNAL. WITHOUT GOING INTO THE MERIT OF THE ISSUES RAISED IN THE 3 ITA NO . 2194/PUN/2016, A.Y. 2010 - 11 APPEAL, IN VIEW OF THE CBDT C IRCULAR THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 6. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, IF THE REQUISITE MATERIAL IS BROUGHT TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR (SUPR A). 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 2 5 TH DAY OF JULY, 2018. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 25 TH JU LY , 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 9 , PUNE 4. THE PR. COMMISSIONER OF INCOME TAX - 5, PUNE 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE