DCIT, Central Circle-2(2), Kolkata, Kolkata V. Shri Hari Prasad Rathi, Howrah

ITA 2379/KOL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9834 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 20-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DR P K SRIHARI
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 2379 / KOL / 2016 ASSESSMENT YEAR :2013-14 DCIT, CENTRTAAL CIRCLE- 2(2), AAYKAR BHAWAN, POORVA, 110, SHANTIPALY, KOLKATA-107 V/S . SHRI HARI PRASAD RATHI 7 TH FLOOR, SHREESHYAM GARDEN,1 2, HARDUTTA RAI CHAMARIA ROAD, 13, GOLABARI, HOWRAH-711101 [ PAN NO. ADEPR 1530 R ] /APPELLANT .. / RESPONDENT /BY ASSESSEE DR. P.K. SRIHARI, CIT-DR /BY RESPONDENT SHRI RAJEEVA KUMAR ADVOCATE /DATE OF HEARING 20-08-2019 /DATE OF PRONOUNCEMENT 20-09-2019 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2013-14, ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-20 KOLKATAS O RDER DATED 26.09.2011 PASSED IN CASE NO.150/CIT(A)-20/CC-2(2)/15-16 INVOL VING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. HEARD BOTH THE SIDES. CASE FILE PERUSED. 2. IT IS SEEN AT THE OUTSET THAT THE TAX EFFECT ON THE DISPUTED ADDITIONS BEFORE US IS LESS THAN RS. 50 LACS IN CASES I.E. LE SS THAN THE PRESCRIBED REVISED THRESHOLD LIMIT IN CBDTS LATEST CIRCULAR N O17/2019 DATED ITA NO.2379/KOL/2016 A.Y. 2013-14 DCIT, CC-2(2), KOL. V. SHRI HARI PRAS AD RATHI P AGE 2 08.08.2019. IT WILL BE PERTINENT TO REPRODUCE THE R ELEVANT PORTION OF THE SAID CIRCULAR AS FOLLOWS:- 2 . AS A STEP TOWARD FURTHER MANAGEMENT OF LITIGATIO N, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEAL S IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (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 WE 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 ASSESSMENT YEAR IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY TH E FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES IN THE CASE OF EVERY ASSESSEE. IF, THE CASE OF AN ASSESSEE, THE DI SPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FIL ED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFE CT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIE D IN PARA 3 . NO. APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMI T SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE AS SESSMENT 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 CASE WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE A SSESSEE, EACH 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, WE DO NOT SEE THIS C ASE FALLING 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 MONET ARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AS WELL. H ONBLE APEX COURT IN COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION L TD REPORTED IN 267 ITR 272 (SC) HAS SETTLED THE LAW THAT CBDTS CIRCULARS ARE VERY MUCH BINDING ON ITA NO.2379/KOL/2016 A.Y. 2013-14 DCIT, CC-2(2), KOL. V. SHRI HARI PRAS AD RATHI P AGE 3 REVENUE AUTHORITIES. WE THUS HOLD THAT THIS REVENUE S APPEAL RAISING SOLE ISSUE OF 1,86,25,000/- DESERVE TO BE DISMISSED IN TERMS OF L OW TAX EFFECT. WE MAKE IT CLEAR THAT IT SHALL VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RECTIFICATION IN CASE IT IS FOUND THAT ANY OF THE A PPEAL INVOLVE OPERATIONS OF EXCEPTION CLAUSES IN THE TAX EFFECT CIRCULAR AS PER LAW. 4. THIS REVENUES APPEAL IS DISMISSED FOR INVOLVING LOWER THAN THE PRESCRIBED MINIMUM TAX EFFECT. ORDER PRONOUNCED IN THE OPEN COURT 20/ 09/2019 SD/- SD/- ( %) (' %) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP (- 20 / 09 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CEN.CIR-2(2), AAYKAR BHAWAN, POORV A, 110, SHANTIPALLY KOL-107 2. /RESPONDENT- SHRI HARI PRASA RATHI, 7 TH FLOOR, SHREESHYAM GARDEN, 12, HARDUTTA RAI CHAMARIA ROAD, 13, GOLABARI, HOWRAH-711101 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5. 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ 3,