Income Tax Officer, Ward 1(2), Raipur V. Mesers Mamraj And Sons, Raipur

ITA 227/RPR/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2478 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 24-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 208; 13

Judgement Text

आयकर अपीलȣय अͬधकरण Ûयायपीठ रायप ु र मɅ। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.208/RPR/2019 Ǔनधा[रण वष[ / Assessment Year : 2015-16 M/s. Mamraj & Sons Bhatapara Road, Tah-Tilda, Raipur (C.G.) PAN : AADFM8888K .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer-1(2), Raipur (C.G.) ......Ĥ×यथȸ / Respondent आयकर अपील सं. / ITA No.227/RPR/2019 Ǔनधा[रण वष[ / Assessment Year : 2015-16 The Income Tax Officer-1(2), Raipur (C.G.) .......अपीलाथȸ / Appellant बनाम / V/s. M/s. Mamraj & Sons Bhatapara Road, Kharora, Raipur (C.G.) PAN : AADFM8888K ......Ĥ×यथȸ / Respondent 2 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur ITA Nos. 208 & 227/RPR/2019 Assessee by : Smt. Laxmi Sharma, CA S/Shri Sunil Kumar Agrawal, CA & Vimal Agrawal, CA Revenue by : Shri G.N Singh, Sr. DR स ु नवाई कȧ तारȣख / Date of Hearing : 27.07.2022 घोषणा कȧ तारȣख / Date of Pronouncement : 27.07.2022 आदेश / ORDER PER RAVISH SOOD, JM: The captioned cross-appeals filed by the assessee and revenue are directed against the order passed by the CIT(Appeals)-1, Raipur dated 06.08.2019, which in turn arises from the order passed by the A.O under Sec.143(3) of the Income-tax Act, 1961 (for short ‘the Act’) dated 19.12.2017 for assessment year 2015-16. 2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation. 3. CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) 3 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur ITA Nos. 208 & 227/RPR/2019 in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the ‘tax effect’. In cases where returned loss is reduced or assessed as income, the ‘tax effect’ would include notional tax on disputed additions. In case of penalty order, the ‘tax effect’ will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.” 4. As a step towards further management of litigation, CBDT vide Circular No.17/2019, dated 08.08.2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-. 4 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur ITA Nos. 208 & 227/RPR/2019 5. In the instant appeal filed by the Department, it was averred by the ld. A.R that the ‘tax effect’ therein involved was below the monetary limit of Rs.50,00,000/-. The said fact was brought to the notice of the ld. Departmental Representative (for short ‘D.R’) who did not controvert the same. 6. With the above observations the appeal involving a ‘tax effect’ of less than Rs.50,00,000/- is dismissed. 7. In the result, appeal of the Revenue in ITA No.227/RPR/2019 is dismissed in terms of our aforesaid observations. ITA No.208/RPR/2019 A.Y.2015-16 8. Adverting to the appeal filed by the assessee in ITA No. 208/RPR/2019, it was submitted by the Ld. AR that he seeks to withdraw the instant appeal. 9. The Ld. DR did not raise any objection to the seeking of withdrawal of appeal filed by the assessee. 10. After having heard the parties herein, the appeal filed by the assessee is dismissed as withdrawn in terms of our aforesaid observations. 5 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur ITA Nos. 208 & 227/RPR/2019 11. In the result, appeal of the assessee in ITA No.208/RPR/2019 is dismissed as withdrawn. 12. In the combined result, both the appeals of the assessee and the revenue are dismissed in terms of our aforesaid observations. Order pronounced in open court on 27 th day of July, 2022. Sd/- Sd/- ARUN KHODPIA RAVISH SOOD (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायप ु र/ RAIPUR ; Ǒदनांक / Dated : 27 th July, 2022 SB आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The CIT(Appeals)-1, Raipur (C.G) 4. The Pr. CIT-1, Raipur (C.G) 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण,रायप ु र बɅच, रायप ु र / DR, ITAT, Raipur Bench, Raipur. 6. गाड[ फ़ाइल / Guard File. आदेशान ु सार / BY ORDER, // True Copy // Ǔनजी सͬचव / Private Secretary आयकर अपीलȣय अͬधकरण, रायप ु र / ITAT, Raipur. 6 M/s. Mamraj & Sons Vs. ITO-1(2), Raipur ITA Nos. 208 & 227/RPR/2019 Date 1 Draft dictated on 27.07.2022 Sr.PS/PS 2 Draft placed before author 27.07.2022 Sr.PS/PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order