DCIT 9(3), MUMBAI V. AMRUTLAL S. GADA, MUMBAI

ITA 2459/MUM/2013

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3643 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 01-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUM BAI . . , , ! '#, $ , % BEFORE SHRI B.R.BASKARAN, AM AND SHRI AMARJIT SINGH , JM / I.T.A. NO.2459/M/13 ( $ & '& / ASSESSMENT YEAR: 2008-09) DY. COMMISSIONER OF INCOME TAX 9(3) 2 ND FLOOR, ROOM NO.229, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI - 400020 / VS. SHRI AMRUTLAL S. GADA 7, KRISHNA KUNJ, S.V.ROAD, MALAD (W), MUMBAI - 400064 ./ ./ PAN/GIR NO. : AADPG5298D ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING: 11.01.2016 !' /DATE OF PRONOUNCEMENT: 15.01.2016 #$ / O R D E R PER AMARJIT SINGH, JM: THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (A) 20, MUMBAI DATED 22. 01.2013 FOR THE ASSESSMENT YEAR 2008-09. ASSESSEE BY: SHRI NONE DEPARTMENT BY: SHRI. GANESH BARE ITA NO.2459/M/2013 A.Y. 2008-09 2 2. AT THE TIME OF HEARING, IT WAS NOTICED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL ON THE DISPUTED ISSUES IS L ESS THAN RS.10 LAKHS. FOR THE SAKE OF CONVENIENCE, WE TABULATE BELOW THE RELEVANT DETAILS:- S.NO. NAME OF ASSESSEE AMOUNT IN DISPUTE(FOR QUANTUM APPEAL) IN RS. PENALTY DELETED OR REDUCED BY LD CIT(A) IN RS. 1 SHRI AMRUTLAL S. GADA 2,47,429/- -- 3. WE NOTICE THAT THE REVENUE IS CONTESTING THE DEC ISION OF LD CIT(A) IN GRANTING RELIEF TO THE EXTENT STATED ABOV E AND HENCE THE TAX EFFECT INVOLVED ON THE ABOVE SAID DISPUTED AMOUNTS WORKS OUT TO LESS THAN RS.10 LAKHS. RECENTLY THE CBDT HAS ISSUED A C IRCULAR NO.21/2015 DATED 10.12.2015 PRESCRIBING NEW MONETAR Y LIMITS FOR PREFERRING APPEALS AGAINST THE ORDERS PASSED BY LD CIT(A) BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE CIRCULAR CIT ED ABOVE READS AS UNDER: F NO 279/MISC. 142/2007-ITJ (PT) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES CIRCULAR NO. 21/20 15 NEW DELHI THE 10TH DECEMBER, 2015 SUB :REVISION OF MONETARY LIMITS FOR FILING OF APPE ALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT - MEASURES FOR REDUCING LITIGATION REG ITA NO.2459/M/2013 A.Y. 2008-09 3 REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/20 14 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FI LING DEPARTMENTAL APPEALS (IN INCOME-TAX MATTERS) BEFORE APPELLATE TR IBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIF IED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, I T HAS BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MER ITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW THE MONETARY LIMITS AND CONDITIONS SPECIFIED B ELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HE REUNDER: S NO APPEALS IN INCOME - TAX MATTERS MONETARY LIMI T (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2 BEFORE HIGH COURT 20,00,000/ - 3 BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCR IBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE, 'TAX EFFECT' MEANS THE DI FFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY TH E AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS IN TENDED TO BE FILED (HEREINAFTER REFERRED TO AS 'DISPUTED ISSUES'). HOW EVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEAB ILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTERES T IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EF FECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL 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. 5. . 6 ITA NO.2459/M/2013 A.Y. 2008-09 4 7. 8. . 9. .. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PEND ING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED . APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 11. .. IT CAN BE NOTICED THAT THE CBDT HAS FURTHER CLARIFI ED THAT THIS NEW CIRCULAR/INSTRUCTION SHALL APPLY RETROSPECTIVELY, I .E., EVEN TO THE PENDING APPEALS. IT IS ALSO STATED THAT THE QUANTUM OF PENALTY DELETED OR REDUCED SHALL BE CONSIDERED FOR DETERMINING THE MONETARY LIMITS. 4. IT IS WELL SETTLED PROPOSITION THAT THE CIRCULAR S ISSUED BY THE CBDT ARE BINDING ON THE INCOME TAX AUTHORITIES. FO R THIS PROPOSITION, ONE MAY GAINFULLY REFER TO THE DECISIO NS RENDERED BY THE HONBLE SUPREME COURT IN THE CASE OF AZADI BACHAO A NDOLAN (2003)(177 TAXATION 775) AND PRADIP J MEHTA VS. CIT (2008)(300 ITR 231). HENCE, THE LATEST CIRCULAR ISSUED BY THE CBDT (REFERRED SUPRA) IS BINDING ON THE INCOME TAX AUTHORITIES. A CCORDINGLY, WE FIND MERIT IN THE SUBMISSIONS OF LD A.R THAT THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE, SINCE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10 LAKHS. ACCORDINGLY, WE DISMISS THE APPEAL FI LED BY THE REVENUE. ITA NO.2459/M/2013 A.Y. 2008-09 5 5. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JANUARY, 2016 SD/- SD/- (B.R.BASKARAN) (AMARJIT SINGH) # / ACCOUNTANT MEMBER %& # /JUDICIAL MEMBER ' ( MUMBAI; )# DATED : 15 TH JANUARY, 2016 MP MP MP MP ) * +$!', -,'! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. * ( ) / THE CIT(A)- 4. * / CIT 5. -./ &&01 , 01' , ' ( / DR, ITAT, MUMBAI 6. /34 5 / GUARD FILE. ) / BY ORDER, - & //TRUE COPY// ./# (DY./ASSTT. REGISTRAR) , ' ( / ITAT, MUMBAI