Assistant Commissioner of Income-Tax, Bangalore V. M/s. Lifestyle International (P) Ltd., Bangalore

ITA 2260/BANG/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6453 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 20-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K R VASUDEVAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH A, BENGALURU BEFORE SHRI N.V.VASUDEVAN (VICE PRESIDENT) AND SHRI G MANJUNATHA (ACCOUNTANT MEMBER) I.T.A NO. 2260/BANG/2016 (ASSESSMENT YEAR: 2011-12) ACIT- CIRCLE 4(1)(1) 2 ND FLOOR, BMTC DEPOT BUILDING, 6 TH BLOCK, KORAMANGALA, BENGALURU-560095. VS M/S LIFESTYLE INTERNATIONAL (P) LTD., NO. 77, TOWN CENTRE, BUILDING NO.3, WEST WING, OFF HAL AIRPORT ROAD, BENGALURU-560037. PAN: AA A C L2937J APP ELLANT RESPONDENT CO. NO. 61/BANG/2017 (ARISING OUT OF ITA.NO. 2260/BANG/2016) (ASSESSMENT YEAR: 2011-12) M/S LIFESTYLE INTERNATIONAL (P) LTD., NO. 77, TOWN CENTRE, BUILDING NO.3, WEST WING, OFF HAL AIRPORT ROAD, BENGALURU-560037. PAN: AAACL2937J VS ACIT- CIRCLE 4(1)(1) 2 ND FLOOR, BMTC DEPOT BUILDING, 6 TH BLOCK, KORAMANGALA, BENGALURU-560095. APPELLANT RESPONDENT ASSESSEE BY SHRI K.R. VASUDEVAN, ADVOCATE REVENUE BY SHRI. SUNIL KUMAR AGARWAL, SR.DR DATE OF HEARING 24 -10-2019 DATE OF PRONOUNCEMENT 24-10-2019 O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 4, BENGALURU, DATED 30-09-2016 FOR THE ASST. YEAR 2011-12. 2 ITA NO. 2260/BANG/2016 AND CO. NO. 61/BANG/2017 2. WE HAVE HEARD BOTH PARTIES, PERUSED MATERIALS AVAILABLE ON RECORD AND GONE THROUGH ORDERS OF THE REVENUE AUTHORITIES. DURING COURSE OF HEARING, LD. AR FOR THE ASSESSEE SUBMITTED THAT TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REVENUE IS LESS THAN MONETARY LIMIT OF RS. 50 LACS FIXED BY THE BOARD, VIDE ITS CIRCULAR NO. 17/2019 DATED 08/08/2019 AND HENCE, APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND NEEDS TO BE DISMISSED. THE LD. DR, FAIRLY ACCEPTED THAT TAX EFFECT IN THIS APPEAL FILED BY THE REVENUE IS LESS THAN MONETARY LIMIT FIXED BY THE BOARD FOR FILING APPEAL BEFORE THE TRIBUNAL, BUT IT IS NOT CLEAR FROM RECORDS WHETHER ISSUES INVOLVED IN THIS APPEAL IS COVERED BY EXCEPTION PROVIDED UNDER CLAUSE (E) OF SUBSEQUENT CIRCULAR AND THEREFORE, IN CASE IT IS SUBSEQUENTLY NOTICED BY THE REVENUE THAT ISSUES INVOLVED IN THIS APPEAL IS COMES UNDER ANY EXCEPTION AS PROVIDED IN SAID CIRCULAR, THEN THE REVENUE SHALL BE ALLOWED TO FILE MISCELLANEOUS APPLICATION TO RECALL THE ORDER. WE, FIND THAT, THE CBDT, RECENTLY HAD ISSUED A CIRCULAR NO. 3/2018 DATED 11-7-2018, SUPERSEDING ITS EARLIER CIRCULAR NO. 21/2015 AND ENHANCED MONETARY LIMIT FOR FILING APPEAL BEFORE VARIOUS APPELLATE AUTHORITIES AND ACCORDINGLY, ENHANCED MONETARY LIMIT TO RS. 20,00,000/- FOR FILING APPEAL BEFORE THE TRIBUNAL. FURTHER, THE BOARD HAS ISSUED ONE MORE CIRCULAR VIDE CIRCULAR NO.17/2019 DATED 08/08/2019 AND ENHANCED MONETARY LIMIT FOR FILING APPEAL BEFORE APPELLATE TRIBUNAL TO RS. 50,00,000/-. FURTHER, IN THE SAID CIRCULAR, THE CBDT HAD INSTRUCTED ITS OFFICERS TO FILE APPLICATION FOR WITHDRAWAL OF APPEAL ALREADY FILED OR NOT TO PURSUE PENDING APPEALS. WE, THEREFORE, BY TAKING INTO ACCOUNT THE CBDT CIRCULAR NO. 3/2018 DATED 11-7-2018 AND CIRCULAR NO.17/2019 DATED 08/08/2019 AND ALSO CONSIDERING THE FACT THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE 3 ITA NO. 2260/BANG/2016 AND CO. NO. 61/BANG/2017 AMOUNT OF MONETARY LIMIT FIXED BY THE CBDT FOR FILING APPEAL, DISMISSED APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. WE, FURTHER NOTED THAT THE CO-ORDINATE BENCH OF ITAT, AHMADABAD A BENCH IN ITA.NO. 1398/AHD/2004, VIDE ORDER DATED 14/08/2019 HAS PASSED DETAILED ORDER CONSIDERING NEW CIRCULAR ISSUED BY THE CBDT AND HELD THAT EXCEPT AMENDMENT TO PARA 3 OF THE CIRCULAR NO.3/2018 DATED 11/07/2018, ALL OTHER PARAS OF THE CIRCULAR NO.03/2018 (SUPRA) HAVE REMAIN INTACT, THEREFORE, THIS CIRCULAR IS APPLICABLE EVEN FOR PENDING APPEALS AND ACCORDINGLY, REJECTED THE ARGUMENTS OF THE REVENUE THAT THE EFFECT OF THE CIRCULAR SHALL COME INTO FORCE FROM THE DATE OF ISSUE OF THIS CIRCULAR. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THIS CASE AND ALSO TAKEN NOTE OF CIRCULARS ISSUED BY THE CBDT INCLUDING CIRCULAR NO. 17/2019 DATED 08/08/2019, AND ALSO BY FOLLOWING THE DECISION OF CO-ORDINATE BENCH, WE DISMISSED APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. HOWEVER, WE KEEP OPEN OPTION TO THE REVENUE TO FILE A MISCELLANEOUS APPLICATION, IF NECESSARY, IN CASE THE ISSUES INVOLVED IN THE PRESENT APPEAL COMES WITHIN 3 EXCEPTIONS AS PROVIDED IN PARA 10 OF SAID CIRCULAR AND CLAUSE (E) OF SUBSEQUENT CIRCULAR. 3. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. CO. NO. 61/BANG/2017 4. THE ASSESSEE HAS FILED THE PRESENT CROSS OBJECTION IN SUPPORT OF ORDER OF THE LD. CIT(A). SINCE, WE HAVE DISMISSED APPEAL FILED BY THE REVENUE, THE CROSS OBJECTION FILED BY THE ASSESSEE BECOMES INFRUCTUOUS AND HENCE, CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS INFRUCTUOUS. 4 ITA NO. 2260/BANG/2016 AND CO. NO. 61/BANG/2017 5. IN THE RESULT, APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH OCTOBER, 2019 SD/ - SD/ - (N. V. VASUDEVAN) VICE PRESIDENT (G. MANJUNATHA) ACCOUNTANT MEMBER BENGALURU, DT : 24-10-2019 COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE