D.C.I.T., Circle-4(2), Kolkata, Kolkata V. Smt. Madhu Neotia, Kolkata

ITA 2366/KOL/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4140 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 16-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHUR Y
• Assessee Lawyers: NILIMA JOSHI F
• Keywords: Tax effect

Judgement Text

I.T.A. NO 2366/KOL/2016 ASSESSMENT YEAR: 2009- 2010 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) & SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A. NO. 2366/KOL/2016 ASSESSMENT YEAR: 2009-2010 DEPUTY COMMISSIONER OF INCOME TAX,,,,,,,,,,,,...... ....................APPELLANT CENTRAL CIRCLE-4(2), KOLKATA, AAYAKAR BHAWAN POORVA, ROOM NO. 506, 110, SHANTI PALLY, 5 TH FLOOR, KOLKATA-700 107 -VS.- SMT. MADHU NEOTIA,................................. ..............................RESPONDENT 7/2, QUEENS PARK, BALLYGUNGE, KOLKATA-700 019 [PAN: ABKPN 2314 F] APPEARANCES BY: SHRI ROBIN CHOUDHURY , ADDL. CIT, SR. D.R. , FOR THE DEPARTMENT SMT. NILIMA JOSHI, F.C.A., FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : OCTOBER 30, 2018 DATE OF PRONOUNCING THE ORDER : OCTOBER 30, 2018 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) :- THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-8, KOLKATA DAT ED 09.09.2016. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, HAS POINTED OUT THAT THE TAX EFFECT INVOLVE D IN THIS APPEAL OF THE REVENUE IS LESS THAN THE REVISED MONETARY LIMIT OF RS.20 LAKHS FIXED BY THE CBDT FOR FILING THE REVENUES APPEAL BEFORE THE TRIBUNAL AND THIS POSITION IS NOT DISPUTED BY THE LD. D.R. IT WILL BE PERTINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCULAR NO. 3/2018 DA TED 11.07.2018 AS UNDER:- 3 . HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: SL. NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONE TARY LIMIT (IN RS) I.T.A. NO 2366/KOL/2016 ASSESSMENT YEAR: 2009- 2010 PAGE 2 OF 3 1. BEFORE APPELLATE TRIBUNAL 20,00,000/- 2. BEFORE HIGH COURT 50,00,000/- 3. BEFORE SUPREME COURT 1,00,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED ME RELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. F ILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE, 'TAX EFFECT' MEANS THE DIFFERENC E BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGE ABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPE CT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFE RRED TO AS 'DISPUTED ISSUES). FURTHER, 'TAX EFFECT' SHALL BE TAX INCLUDING APPLICAB LE 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 IN TEREST 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 NOT IONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 3. ON PERUSAL OF THE CIRCULAR NO. 3/2018 DATED 11.0 7.2018 AND THE MATERIALS AVAILABLE ON RECORD, WE DO NOT SEE THIS CASE FALLIN G UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR PER SE . WE 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 BINDING ON REVENUE AUTHORITIES. WE THUS HOLD THAT T HIS REVENUES APPEAL DESERVES TO BE DISMISSED IN TERMS OF LOW TAX EFFECT. WE MAKE IT CL EAR THAT IT SHALL BE VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RECTIFICATION IN CASE IT IS FOUND THAT THIS APPEAL INVOLVES OPERATION OF EXCEPTION CLAUSES IN THE TAX EFFECT CI RCULAR AS PER LAW. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON OCTOBER 30, 2 018. SD/- SD/- (SATBEER SINGH GODARA) (P.M. JAGTAP) JUDICIAL MEMBER VICE-PRESIDENT(KZ ) KOLKATA, THE 30 TH DAY OF OCTOBER, 2018 I.T.A. NO 2366/KOL/2016 ASSESSMENT YEAR: 2009- 2010 PAGE 3 OF 3 COPIES TO : (1) DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4(2), KOLKATA, AAYAKAR BHAWAN POORVA, ROOM NO. 506, 110, SHANTI PALLY, 5 TH FLOOR, KOLKATA-700 107 (2) SMT. MADHU NEOTIA, 7/2, QUEENS PARK, BALLYGUNGE, KOLKATA-700 019 (3) COMMISSIONER OF INCOME TAX (APPEALS)-8, KOLKA TA, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.