ITO,Ward-1(5), Dhanbad V. Shri Manoj Kumar Singh, Dhanbad

ITA 23/RAN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2501 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 11-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NISHA ORAON SINGHMARR J
• Assessee Lawyers: ASHISH KUMAR SHEKHAR
• Keywords: Tax effect
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH SMC RANCHI BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NOS.21 TO 23 & 25/RAN/2019 & C.O. NO.05 TO 07 & 09/RAN/2019 (A/O ITA NOS.21-23 & 25/RAN/2019) ASSESSMENT YEARS: 2007-08 & 2008-09 INCOME TAX OFFICER WARD-1(5), 1 ST FLOOR, AAYKAR BHAWAN, L.C. ROAD, DHANBAD-826001 MANOJ KUMAR SINGH SUPERVISORS QUARTERS, JAMADOBA P.O. JALGORA, DHANBAD-828110 [ PAN NO.ALDPS 8391 J ] / V/S . SHRI MANOJ KUMAR SINGH SUPERVISORS QUARTERS, JAMADOBA, P.O. JEALGORA, DHANBAD INCOME TAX OFFICER WARD-1(5), 1 ST FLOOR, AAYKAR BHAWAN, L.C. ROAD, DHANBAD-826001 / APPELLANT/ /CO-OBJECTOR .. /RESPONDENT /BY ASSESSEE SHRI ASHISH KUMAR SHEKHAR, ADVOCATE /BY REVENUE SMT. NISHA ORAON SINGHMARR, JCIT-DR /DATE OF HEARING 04-03-2020 /DATE OF PRONOUNCEMENT 04-03-2020 /O R D E R (ORAL) THESE FOUR REVENUES APPEALS ITA NOS. 21-23 AND 25 /RAN/2019 AS MANY CROSS OBJECTION C.O NOS. 05-07 & 09/RAN/2019 A RISE FROM COMMISSIONER OF INCOME TAX(APPEALS) JHARKHANDS SEPARATE ORDERS IN ASSESSMENTS FRAMED U/S 147 AS WELL AS IMPUGNED PENALTY(IES) 271D/271E OF THE INCO ME TAX ACT, 1961; IN SHORT THE ACT; RESPECTIVELY. ITA NO.21-23 & 25/R/19 & CO 05-07 & 09/R/19 A.YS. -7-08 & 08-09 ITO WD-1(5), DHN VS. SH MANOJ KR. SINGH PAGE 2 2. IT IS SEEN AT THE OUTSET THAT THE TAX EFFECT ON THE DISPUTED ADDITIONS BEFORE ME IS LESS THAN RS. 50 LACS AS PRESCRIBED IN THE CBDT S LATEST CIRCULAR NO17/2019 DATED 08.08.2019. IT WILL BE PERTINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCULAR AS FOLLOWS:- 2 . AS A STEP TOWARD FURTHER MANAGEMENT OF LITIGATION , IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50,00,000 2. BEFORE HIGH COURT 1,00,00,000 3. BEFORE SUPREME COURT 2,00,00,000 3.1 I FIND THAT INTENTION BEHIND THE CIRCULAR NO17/ 2019 DATED 08.08.2019 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS- -VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSES SMENT YEAR IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF, THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES AR ISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES EXCEEDS 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 I S LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF C OMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENTS YEAR , 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. IN CAS E WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EAC H ASSESSEE SHALL BE DEALT WITH SEPARATELY. 3.2. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DATED 0 8.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, I DO NOT SEE THESE CASE(S) FAL LING UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR PER SE . I ALSO FIND THAT THIS CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AS WELL. H ONBLE APEX COURT IN COMMISSIONER OF CUSTOMS VS IND IAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) HAS SETTLED THE LAW THAT CBDTS CIRCULARS ARE VERY MUCH ITA NO.21-23 & 25/R/19 & CO 05-07 & 09/R/19 A.YS. -7-08 & 08-09 ITO WD-1(5), DHN VS. SH MANOJ KR. SINGH PAGE 3 BINDING ON REVENUE AUTHORITIES. I THUS HOLD THAT TH ESE REVENUES APPEAL(S) RAISING SOLE ISSUE DESERVE TO BE DISMISSED IN TERMS OF LOW TAX E FFECT. I MAKE IT CLEAR THAT IT SHALL VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RE CTIFICATION IN CASE IT IS FOUND THAT ANY OF THE APPEAL INVOLVE OPERATIONS OF EXCEPTION C LAUSES IN THE TAX EFFECT CIRCULAR AS PER LAW. 4. LEARNED COUNSEL IN ASSESSEES CO NOS.05-07 & 09/ RAN/2019 DOES NOT WISH TO PRESS THE SAME BEFORE ME. THESE CROSS OBJECTIONS AR E DISMISSED FOR NON PROSECUTION. 5. THESE REVENUES APPEAL(S) ITA NO.21-23 & 25/RAN/2019 ARE DISMISSED FOR INVOLVING LOWER THAN THE PRESCRIBED MINIMUM TAX EFF ECT WHEREAS ASSESSEES CO NOS.05-07 & 09/RAN/2019 THEREIN APPEALS ARE DISMISSED FOR NON PROSECUTION . ORDER PRONOUNCED IN OPEN COURT AT THE CLOSE OF HEA RING ON WEDNESDAY , 4 TH MARCH, 2020 SD/- ( $% ) (S.S. GODARA) JUDICIAL MEM BER *DKP/SR.PS ( - 04/03/2020 / COPY OF ORDER FORWARDED TO:- 1. /ASSESSEE-SHRI MANOJ KR SINGH SUPERVISORS QUARTERS, JAMADOBA P.O. JEALGORA, DHANBAD-82 8110 2. /REVENUE-INCOME TAX OFFICER, WD-1(5), 1 ST FLOOR, AAYKAR BHAWAN, L.C. ROAD, DHANBAD-826001 3. , . / CONCERNED CIT 4. . - / CIT (A) 5. / %%, , , / DR, ITAT, RANCHI 6. 3 / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY/P.S (ON TOUR) ,,