ACIT,Circle-3, Dhanbad V. M/S Parikh Marketing Pvt. Ltd., Dhanbad

ITA 256/RAN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0250 (ITAT-RANCHI)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 25-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M K CHOWDHURY
• Keywords: Tax effect
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH SMC RANCHI BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.256/RAN/2019 ASSESSMENT YEAR:2013-14 ACIT, CIRCLE-2, ROOM NO. 307, 2 ND FLOOR, AAYAKAR BHAVAN, LUBY CRICULAR ROAD, DHANBAD-826001 / V/S . M/S PARIKH MARKETING PVT. LTD., JHARIA ROAD, DHANSAR, DHANBAD-826001 [ PAN NO.AAECP 6236 E ] /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI M.K. CHOWDHURY, ADVOCATE /BY RESPONDENT SHRI AJAY KUMAR, ADDL. CIT-DR /DATE OF HEARING 06-03-2020 /DATE OF PRONOUNCEMENT 06-03-2020 /O R D E R (ORAL) THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2013-14, ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-DHANBADS ORDE R DATED 25.07.2019 PASSED IN CASE NO. CIT(A), DHANBAD/100333/2018-19, INVOLVING PROCEEDINGS U/S. 154 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. IT IS SEEN AT THE OUTSET THAT THE TAX EFFECT ON THE DISPUTED ADDITION BEFORE ME IS LESS THAN RS.50 LACS AS PRESCRIBED IN THE CBDTS LA TEST CIRCULAR NO17/2019 DATED 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 LITIGATION , IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ITA NO.256/RAN/2019 A.Y. 2013-14 ACIT CIR-2, DHN VS. M/S PARIKH MARKETING PVT. LTD. P AGE 2 ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT (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 I 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 ASSES SMENT YEAR IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF, THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES AR ISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3 . NO. APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT I S LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF C OMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT 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 CAS E WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EAC H ASSESSEE SHALL BE DEALT WITH SEPARATELY. 3.2. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DATED 0 8.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, I DO NOT SEE THESE CASE(S) FAL LING UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR PER SE . I ALSO FIND THAT THIS CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AS WELL. H ONBLE APEX COURT IN COMMISSIONER OF CUSTOMS VS IND IAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) HAS SETTLED THE LAW THAT CBDTS CIRCULARS ARE VERY MUCH BINDING ON REVENUE AUTHORITIES. I THUS HOLD THAT TH ESE REVENUES APPEAL(S) RAISING SOLE ISSUE DESERVE TO BE DISMISSED IN TERMS OF LOW TAX E FFECT. I MAKE IT CLEAR THAT IT SHALL VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RE CTIFICATION IN CASE IT IS FOUND THAT ANY OF THE APPEAL INVOLVE OPERATIONS OF EXCEPTION C LAUSES IN THE TAX EFFECT CIRCULAR AS PER LAW. ITA NO.256/RAN/2019 A.Y. 2013-14 ACIT CIR-2, DHN VS. M/S PARIKH MARKETING PVT. LTD. P AGE 3 4. THIS REVENUES APPEAL IS DISMISSED FOR INVOLVING LOWER THAN THE PRESCRIBED MINIMUM TAX EFFECT. ORDER PRONOUNCED IN OPEN COURT AT THE CLOSE OF HEA RING ON FRIDAY , 6 TH MARCH, 2020 SD/- ( #) (S.S. GODARA) JUDICIAL MEM BER *DKP/SR.PS % - 06/03/2020 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ACIT, CIR-2, R.NO.307, 2 ND FLOOR, AAYAKAR BHAVAN, LUBY CIRCULAR ROAD, DHANBAD-826001 2. /RESPONDENT-M/S PARIKH MARKETING PVT. LTD. JHARIA R OAD, DHANSAR DHANBAD-826001 3. ) , / CONCERNED CIT 4. , - / CIT (A) 5. - ) , ) / DR, ITAT, RANCHI 6. 1 / GUARD FILE. BY ORDER/ , SR. PRIVATE SECRETARY/P.S (ON TOUR) ),