Assistant Commissioner of Income-tax, V. Hutatma Sahakari Bank Ltd., Sangli

ITA 2473/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5286 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 21-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SHWETA MISHRA
• Keywords: Depreciation; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E . , , ! ' , # $ BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AW ASTHY, JM . / ITA NO. 2473/PUN/2016 #& ' (' / ASSESSMENT YEAR : 2012-13 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, SANGLI. ....... / APPELLANT & / V/S. HUTATMA SAHAKARI BANK LTD. A/P. WALWA, TAL : WALWA, DIST. SANGLI, PIN-416 313 PAN : AAAAH0140B / RESPONDENT REVENUE BY : MRS. SHWETA MISHRA ASSESSEE BY : SHRI M.K. KULKARNI / DATE OF HEARING : 30.07.2018 / DATE OF PRONOUNCEMENT : 30.07.2018 ) / ORDER PER VIKAS AWASTHY, JM THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX (APPEAL)-1, KOLHAPUR DATED 09.08 .2016 FOR THE ASSESSMENT YEAR 2012-13. 2. SHRI M.K. KULKARNI APPEARING ON BEHALF OF THE ASSESSEE S UBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT 2 ITA NO.2473/PUN/2016 A.Y.2012-13 OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO.3/2018 , DATED 11.07.2018. THE LD. COUNSEL FOR THE ASSESSEE HAS FURNISHED WORKING OF TAX EFFECT INVOLVED IN THE APPEAL. ACCORDING TO THE WORKING, TAX EFFECT IS RS.19,78,218/- INCLUDING SURCHARGE. 3. MRS. SHWETA MISHRA REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.20 L AKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(APPEAL) IN DELETING THE ADDITION OF RS.58,82,024/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF PROVISION FOR DEPRECIATION ON SECURITIES HELD TO MATURITY (HTM). UNDISPU TEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRES CRIBED BY THE RECENT CBDT CIRCULAR FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR NO.3/2018, DATED 11.07.2 018 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO T HE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE AS WELL AS THE APPEALS PE NDING BEFORE THE TRIBUNAL. WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE R EQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PR ESCRIBED IN PARA 10 OF THE CIRCULAR (SUPRA.) 3 ITA NO.2473/PUN/2016 A.Y.2012-13 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 30 TH DAY OF JULY, 2018. SD/- SD/- ( . / D. KARUNAKARA RAO ) ( ! ' /VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; !' / DATED : 30 TH JULY, 2018 SB ) * +#,-! .!(, / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEAL)-1, KOLHAPUR. 4. THE CIT-1, KOLHAPUR. 5. %&' () , * () , +,- , / DR, ITAT, B BENCH, PUNE. 6. './ 01 / GUARD FILE. // TRUE COPY // *2 / BY ORDER, 3 (- / PRIVATE SECRETARY * () , / ITAT, PUNE.