DCIT, Circle - 1, Siliguri, Siliguri V. Himalayan Endeavour Pvt. Ltd., , Siliguri

ITA 2434/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4502 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 11-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A BHATTACHARYA CIT LD
• Assessee Lawyers: B K SINGH D LD
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA BEFORE SHRI M. BALAGANESH , AM & SHRI S.S. VISWANETHRA RAVI, JM I.T.A NO. 2434 /KOL/201 7 A.Y 20 13 - 14 D.C.I.T, C IR - 1 , SILIGURI - VS - M/S. HIMALAYAN ENDEAVOUR PVT. LTD. PAN: AACH 7707C (APPELLANT) (RESPONDENT) FOR THE APPELLANT : A. BHA TTACHARYA, ADDL.CIT, LD.DR FOR THE RESPONDENT : SHRI B.K. SINGH, ADVOCATED, LD.AR DATE OF HEARING : 07.08 .2018 DATE OF PRONOUNCEMENT : 10 .08.2018 ORDER SHRI S.S. VISWANETHRA RAVI, JM: THE ABOVE APPEAL BY THE REVENUE AGAINST THE ORDER DT. 29 - 08 - 2017 OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) , SILIGURI FOR THE A.Y 20 13 - 14 . 2. ON PERUSAL OF RECORD, THAT THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE IN VIEW OF LATEST CBDT CIRCULAR. IN THIS CASE, THE TAX EFFECT IS OF RS.17,81,635.14, WHICH IS NOT MAINTAINABLE IN VIEW OF THE LATEST CBDT CIRCULAR. 3 . T HE CBDT HAS ISSUED CIRCULAR NO. 3/2018 DATED 11.07.2018, WHEREBY THE MONETARY LIMITS FOR FILING OF APPEALS BY THE REVENUE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL , HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN INCREASED . THE REVISED MONETARY LIMITS LAID DOWN IN PARA - 3 OF THIS CIRCULAR AND THE MANNER OF COMPUTING TAX EFFECT AS LAID DOWN IN PARA - 4 OF THIS CIRCULAR ARE AS FOLLOWS: 2 ITA NO. 2434/KOL/2017 - T.E M/S. HIMALAYAN ENDEAVOUR P.LTD . 2 3 . HEN CEFORTH, 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 MONETARY LIMIT (IN RS) 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 MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DEC IDED ON MERITS OF THE CASE. 4. 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 THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRED TO AS 'DISPUTED ISSUES). FURTHER, 'TAX EFFECT' SHALL BE TAX 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 DIS PUTED 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. IN PARA - 13 OF THE SAID CIRCULAR IT HAS FURTHER BEEN CLARIFIED THAT THE REVISED MONETARY LIMITS WILL APPLY RETROSPECTIVELY. THE RELEVANT PARA - 13 OF THE CIRCULAR READS THUS: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTIONS/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 . IN THE PRESENT CASE, THE DISPUTED ADDITION (S) AND TAX THEREON ARE BELOW RS.20,00,000/ - . 5 . IN VIEW OF THE ABOVE, THE APPEAL FILED BY THE REVENUE IS DISMISSED AS NOT MAINTAINABLE IN VIEW OF LATEST CBDT CIRCULAR NO. 3/2018 DT. 11 - 07 - 2018. 6 . IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 10 .08.2018 SD/ - SD/ - M. BALAGANESH S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 10 - 08 - 2018 3 ITA NO. 2434/KOL/2017 - T.E M/S. HIMALAYAN ENDEAVOUR P.LTD . 3 **PP/COPY OF THE ORDER FORWARDED TO: 1. APPELLANT DEPUTY COMMISSIONER OF INCOME TAX, C IRCLE - 1 , AAYKAR BHAWAN, PARIBAHAN NAGAR, MATIGARA, SILIGURI - 734001. 2 RESPONDENT M/S. HIMALAYAN ENDEAVOUR PVT.LTD, TEA AUCTION ROAD,MALLAGURI, SILIGURI - 734001. 3. THE CIT(A), SILIGURI 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA // TRUE COPY// BY ORDER, SR.PS/H.O.O ITAT, KOLKATA