Deputy Commissioner of Income Tax, Circle - Imphal , Manipur V. Shri Khagemba Sanabam , Manipur

ITA 246/GTY/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6473 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI E-COURT AT KOLKATA BEFORE SHRI ABY. T. VARKEY, HONBLE JUDICIAL MEMBER & DR. A. L. SAINI, HONBLE ACCOUNTANT MEMBER ./ITA NO.246/GAU/2019 ( [ [ / ASSESSMENT YEAR:2012-13) DCIT, CIRCLE - IMPHAL O/O. DCIT, CIRCLE-IMPHAL, OLD LAMBULANE, CENTRAL JAIL ROAD, IMPHAL WEST, MANIPUR - 795001 VS. SHRI KHAGEMBA SANABAM SINGJAMEI WAIKHOM LEIKAI, SINGJAMEI, IMPHAL WEST, MANIPUR - 795008 ./ ./PAN/GIR NO.: BALPS 7142 H (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI JAYANTA MRIDHA, JCIT, SR. DR RESPONDENT BY : SHRI SOMNATH GHOSH, ADVOCATE / DATE OF HEARING : 09/09/2020 /DATE OF PRONOUNCEMENT : 09/09/2020 / O R D E R DR. A.L. SAINI, AM THE CAPTIONED APPEAL FILED BY THE REVENUE, PERTAINING TO ASSESSMENT YEAR 2012-13, IS DIRECTED AGAINST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEAL), JORHAT IN APPEAL NO. CIT(A)/JORHAT/10030/2015-16, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 23.03.2015. 2. IN THIS REVENUES APPEAL IN ITA NO. 246/GAU/2019, WE WE NOTICED THAT REVENUE HAS RAISED GROUND IN RESPECT OF ADDITION DELETED BY THE LD. CIT(A), WHICH RELATES TO ESTIMATION OF NET PROFIT FROM BUSINESS @5% OF THE GROSS RECEIPT AT RS. 1,47,72,981/- (5% OF 29,54,65,851/-) WHICH COMES IN THE AMBIT OF TAX EFFECT OF CBDT CIRCULAR VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019. ITA NO.246/GAU/2019 SHRI KHAGEMBA SANABAM ASSESSMENT YEAR:2012-13 PAGE | 2 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 BY THE REVENUE IS LESS THAN RS.50,00,000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 04/09/2017 AND WAS WITHIN THE MONETARY LIMIT IN THE FORM OF TAX EFFECT FOR FILING APPEALS BEFORE TRIBUNAL, 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 REVENUE ITA NO.246/GAU/2019 SHRI KHAGEMBA SANABAM ASSESSMENT YEAR:2012-13 PAGE | 3 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. 1962/KOL/2017 IS DISMISSED IN LIMINE . 8. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO. 246/GAU/2019 IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 09.09.2020 SD/- ( A.T. VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 18/09/2020 ( RS, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. DCIT, CIRCLE IMPHAL. 2. SHRI KHAGEMBA SANABAM. 3. C.I.T(A) 4. C.I.T. 5. CIT(DR) 6. GUARD FILE. TRUE COPY BY ORDER SR. PRIVATE SECRETARY/H.O.O. ITAT, GAUHATI BENCH