ITO, Ward -26(2) , Kolkata V. Shri Bikash Saha , Kolkata

ITA 2532/KOL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7467 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-01-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 06-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHUBA JYOTI ROY J
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 2 532 / KOL / 2018 ASSESSMENT YEAR :2014-15 INCOME TAX OFFICER, WARD-26(2), 2 ND ,FLOOR, AAYAKAR BHAAN, DAKSHIN, 2 GARIAHAT ROAD (SOUTH), KOLKATA-700 068 V/S . SHRI BIKASH SAHA 287, PARNASREE PALLY, 131, BEHALA SOUTH KOLKATA-700 060 [ PAN NO.AUPPD 4738 N ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI DHUBA JYOTI ROY JCIT-DR /BY RESPONDENT SHRI NARENDRA KEDIA, ADVOCATE /DATE OF HEARING 27-01-2020 /DATE OF PRONOUNCEMENT 29-01-2020 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2014-15, ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-7 KOLKATAS OR DER DATED 31.08.2018 PASSED IN CASE NO.19/CIT(A)-7/KOL/WARD-26(2)/18-19, INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT T HE ACT. 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.2532/KOL/2018 A.Y. 2014-15 ITO, WD-26(2) KOL. VS. SHRI BIKASH SA HA PAGE 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 08.08.2019 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.2532/KOL/2018 A.Y. 2014-15 ITO, WD-26(2) KOL. VS. SHRI BIKASH SA HA PAGE 3 REVENUE AUTHORITIES. WE THUS HOLD THAT THIS REVENUE S APPEAL RAISING SOLE ISSUE OF 52,84,370 DESERVE TO BE DISMISSED IN TERMS OF LOW T AX 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 29/ 01/2020 SD/- SD/- ( &) (( &) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP SR.P.S. )- 29 / 01 /20 20 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ITO WARD-26(2, 2 ND FLOOR, AAYAKAR BHAWAN DAKSHIN, 2,GARIAHAT ROAD (SOUTH), KOLKATA-700 068 2. / RESPONDENT-SHRI BIKASH SAHA, 287, PARNASREE PALL Y, 131, BEHALA SOUTH, KOLKAT A-700 060 3. 4 5 / CONCERNED CIT KOLKATA 4. 5- / CIT (A) KOLKATA 5. 8 ((4, 4, / DR, ITAT, KOLKATA 6. = / GUARD FILE. BY ORDER/ , /TRUE COPY/ 4,