The ACIT, Central Circle-1, Vapi V. Shri Kamalbhai Jayntilal Shah, Vapi

ITA 2310/AHD/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4882 (ITAT-SURAT)
• Duration Of Justice: 4 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 07-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A.L.SAINI, AM ./ITA NO.2310/AHD/2016 ( [ [ / ASSESSMENT YEAR: 2014-15) (VIRTUAL COURT HEARING) ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, VAPI VS. KAMALBHAI JAYANTILAL SHAH, PLOT NO. 35, YASH KAMAL, CHIKOOWADI, OPP-GIDC GUEST HOUSE, HARIA HOSPITAL ROAD, VAPI-396195. ./ ./PAN/GIR NO.: AFHPS5482G (APPELLANT) .. (RESPONDENT) APPELLANT BY : MS ANUPAMA SINGLA, SR. DR RESPONDENT BY : SHRI HARDIK VORA, AR / DATE OF HEARING : 13/10/2020 /DATE OF PRONOUNCEMENT : 13/10/2020 / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL FILED BY THE REVENUE, PERTAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEAL)-4, SURAT, [IN SHORT THE CIT(A)] IN APPEAL NO. CAS/4/597 TO 599/2015-16 DATED 03.06.2016, WHICH IN TURN ARISES OUT AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER [IN SHORT THE AO] U/S143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 28/03/2016. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE THE BENCH THAT REVENUE HAS RAISED GROUNDS OF APPEAL IN RESPECT OF ADDITION DELETED BY THE LD. CIT(A) OF RS.74,57,981/-, WHICH COMES IN THE AMBIT OF TAX EFFECT OF CBDT CIRCULAR, VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019, THEREFORE APPEAL FILED BY THE REVENUE ITA 2310/AHD/2016 ASSESSMENT YEAR. 2014-15 KAMALBHAI JAYANTILAL SHAH PAGE | 2 MAY BE DISMISSED. LEARNED DEPARTMENTAL REPRESENTATIVE (DR) FOR THE REVENUE DID NOT RAISE ANY OBJECTION IF THE APPEAL IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 3. RECENTLY THE CBDT HAS ISSUED CIRCULAR NO. 17/2019 DATED 08.08.2019, WHEREBY THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN INCREASED AS MEASURE FOR REDUCING LITIGATION. THE REVISED MONETARY LIMITS LAID DOWN IN PARA-2 OF THIS CIRCULAR ARE AS FOLLOWS: 1. BEFORE APPELLATE TRIBUNAL RS. 50,00,000/- 2. BEFORE HIGH COURT RS.1,00,00,000/- 3. BEFORE SUPREME COURT RS. 2,00,00,000/- 4. IN THE PRESENT CASE, THE TAX EFFECT IS LESS THAN RS.50,00,000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 07/09/2016 AND WAS WITHIN THE MONETARY LIMIT IN THE FORM OF TAX EFFECT FOR FILING APPEALS BEFORE TRIBUNAL, HOWEVER, IN VIEW OF THE RECENT CIRCULAR OF CBDT, EVEN SUCH APPEALS WILL BE GOVERNED BY THE NEW MONETARY LIMITS LAID DOWN IN THE CBDT CIRCULAR NO.17/2019 REFERRED TO ABOVE. 5. IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS. INDIAN OIL CORPORATION LTD. REPORTED IN 267 ITR 272 WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISIONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID DOWN THAT WHEN A CIRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUND BY IT AND CANNOT BE ALLOWED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY TO THE TERMS OF THE STATUTE. THE APPEAL UNDER CONSIDERATION HAS CERTAINLY BEEN FILED CONTRARY TO THE CIRCULAR ISSUED BY THE CBDT CIRCULAR NO.17 DATED 08.08.2019. 6. IN THE EVENT, THE REVENUE FINDS AT A LATER POINT OF TIME THAT THE TAX EFFECT IN THE APPEAL IS MORE THAN RS.50 LAKHS OR DESPITE LOW TAX EFFECT THE APPEAL OF THE ITA 2310/AHD/2016 ASSESSMENT YEAR. 2014-15 KAMALBHAI JAYANTILAL SHAH PAGE | 3 REVENUE IS MAINTAINABLE, THE REVENUE IS AT LIBERTY TO MOVE THIS TRIBUNAL FOR RECALLING OF THIS ORDER. 7. IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL FILED BY THE DEPARTMENT, AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), IS CONTRARY TO THE POLICY DECISION OF THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY THE DEPARTMENT IN ITA NO. 2310/AHD/2016 FOR AY. 2014-15 IS DISMISSED IN LIMINE . 8. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO. 2310/AHD/2016 IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 13.10.2020 SD/- (PAWAN SINGH) SD/- (DR. A. L. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER LWJR /SURAT / DATE: 13/10/2020 SAMANTA, PS COPY OF THE ORDER FORWARDED TO 1. THE ASSESSEE 2. THE RESPONDENT 3. THE CIT(A) 4. PR.CIT 5. DR/AR, ITAT, SURAT 6. GUARD FILE // TRUE COPY // BY ORDER ASSISTANT REGISTRAR/SR. PS/PS ITAT, SURAT