ACIT, CIRCLE-5, Nagpur V. SHRI S. RAMALINGAM, Nagpur

ITA 226/NAG/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9673 (ITAT-NAGPUR)
• Duration Of Justice: 5 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-04-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 15-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A R NINAWE
• Keywords: Tax effect
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI P.K. BANSAL, VICE PRESIDENT AND SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA NO. 226/NAG./2012 ( ASSESSMENT YEAR : 200506 ) ASSTT. COMMISSIONER OF INCOME TAX CIRCLE5, NAGPUR APPELLANT V/S SHRI S. RAMALINGAM S/O SHRI J. SUBRAMANIAN 42B, TILAK NAGAR, NAGPUR 440 001 PAN ABMPR4373A .... RESPONDENT REVENUE BY : SHRI A.R. NINAWE ASSESSEE BY : SHRI ABHAY AGRAWAL DATE OF HEARING 21.06.2017 DATE OF ORDER 21.06 .2017 O R D E R PER AMARJIT SINGH, J.M. THE REVENUE HAS FILED THE PRESENT APPEAL AGAINST TH E IMPUGNED ORDER DATED 17 TH MARCH 2012, PASSED BY THE LEARNED COMMISSIONER (APPEALS)II, NAGPUR, FOR THE ASSESSMENT YEAR 2005 06. THE GROUND RAISED BY THE REVENUE IS REPRODUCED BELOW: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED CIT(A) ERRED IN HOLDING THAT SUBSTANTIA L PORTION OF THE LOANS HAD BEEN RECEIVED IN PRIOR YEAR, WHILE AT THE SAME TIME ACKNOWLEDGING THAT VITAL DETAILS AND DOCUMENTS, IN RESPECT OF SUCH LOANS, WERE NOT FILED, EITHER BEFORE THE ASSESSING OFFICER OR DURING THE APPELLATE PROCEEDINGS. 2. AT THE VERY OUTSET, WE NOTED THAT IN THIS CASE THE TAX EFFECT ON THE INCOME UNDER DISPUTE IS LESS THAN ` 10 LAKH. WE FURTHER NOTED THAT 2 SHRI S. RAMALINGAM THE CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 FILE NO.279 OF MISC. 142/2007ITJ(PT ) HAS ISSUED THE DIRECTION IN SUPERSESSION OF THE INSTRUCTION NO.5/2 014 DATED 10 TH JULY 2014, IN PURSUANCE WITH THE POWER INTERESTED UNDER SECTION 268A OF THE INCOME TAX ACT, 1961, THAT NO APPEAL SHOULD BE FILED BEFORE THIS TRIBUNAL IN CASE TAX EFFECT DOES NOT EXCEED ` 10 LAKH. THE TAX EFFECT IN THIS REGARD MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WHAT HAVE BEEN CHA RGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INC OME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED . THIS CIRCULAR FURTHER STATES THAT TAX WILL NOT INCLUDE ANY INTEREST THERE ON THE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. WE FURTHER NOTED THA T UNDER PARAGRAPH 10 WHICH IS REPRODUCED AS UNDER, IT HAS BEEN MENTIONED IN THE CIRCULAR THAT THIS INSTRUCTION WILL APPLY EVEN TO THE PENDIN G APPEALS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/T RIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEALS BEFORE THE SU PREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3. IN THE IMPUGNED CASE, WE NOTED THAT THE TAX EFFECT ON THE ISSUE UNDER DISPUTE DOES NOT EXCEED ` 10 LAKH. IN VIEW OF THIS FACT, AS PER THE INSTRUCTION, THE REVENUE IS NOT SUPPOSED TO PRE SS THE APPEAL. WE, THEREFORE, DISMISS THE APPEAL FILED BY THE REVENUE IN LIMINE WITHOUT GOING INTO THE MERITS OF THE CASE, AS, IN OUR OPINI ON, THE CIRCULARS 3 SHRI S. RAMALINGAM ISSUED BY CBDT ARE BINDING ON THE DEPARTMENTAL OFFI CERS IN VIEW OF THE PROVISION OF SECTION 268A(1) OF THE ACT. THE SA ID VIEW HAS BEEN TAKEN BY HONBLE SUPREME COURT IN THE CASE OF NAVNE ET LAL ZAVERI V/S AAC, 56 ITR 198 (SC). WE, ACCORDINGLY, DISMISS THE APPEAL FILED BY THE REVENUE. 4. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.06.2017 SD/ - P.K. BANSAL VICE PRESIDENT SD/ - AMARJIT SINGH JUDICIAL MEMBER NAGPUR, DATED: 21.06.2017 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, NAGPUR CITY CONCERNED; (5) THE DR, ITAT, NAGPUR; (6) GUARD FILE. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (DY./ASSTT. REGISTRAR) ITAT, NAGPUR 4 SHRI S. RAMALINGAM DATE INITIAL 1. DRAFT DICTATED ON 21.06.2017 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 21.06.2017 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 21.06.2017 SR.PS 6. DATE OF PRONOUNCEMENT 21.06.2017 SR.PS 7. FILE SENT TO THE BENCH CLERK 21.06.2017 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER