ACIT, Dhanbad V. Shri Gopal Baran Chattopadhyay, Dhanbad

ITA 262/RAN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6944 (ITAT-RANCHI)
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 04-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N S KHALKHO JCITSRDR
• Assessee Lawyers: R R MITTAL
• Keywords: Tax effect
• Section: 271(1)(c); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH E COURT AT KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO. 2 6 2 / RAN / 201 9 ASSESSMENT YEAR :2014-15 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1) 1 ST FLOOR, AAYKAR BHAWAN, L.C. ROAD, DHANBAD-826001 V/S . SHRI GOPAL BARAN CHATTOPADHYAY, 505, 5 TH SHANTI BHAWAN, BANK MORE, DHANBAD-876001 [ PAN NO.ABUPC 9299 E ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI N.S.KHALKHO, JCIT-SR-DR /BY RESPONDENT SHRI R.R. MITTAL, FCA /DATE OF HEARING 01-09-2020 /DATE OF PRONOUNCEMENT 01-09-2020 / O R D E R PER BENCH :- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-DHANBADS ORDE R DATED 24.09.2019 PASSED IN CASE NO. CIT(A), DHANBAD/10027/2017-18 IM POSING PENALTY OF 14,48,130/-U/S 271(1)(C) THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD SHRI R.R. MITTAL, AUTHORIZED REPRESENTATIVE A ND SHRI N.S. KHALKHO, JCIT-SR-DR FOR ASSESSEE AND DEPARTMENT; RE SPECTIVELY. CASE FILE PERUSED. 2. IT IS SEEN AT THE OUTSET THAT THE TAX EFFECT ON THE DISPUTED PENALTY BEFORE US IS LESS THAN RS. 50 LACS AS THE PRESCRIBE D IN THE CBDTS LATEST ITA NO.262/RAN/2019 A.Y. 2014-15 ACIT, CIR-1(1) DHANBAD VS. SH GOPAL BARAN CHATT OPADHYAY PAGE 2 CIRCULAR NO17/2019 DATED 08.08.2019. IT WILL BE PER TINENT TO REPRODUCE THE RELEVANT 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 0 8.08.2019 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.262/RAN/2019 A.Y. 2014-15 ACIT, CIR-1(1) DHANBAD VS. SH GOPAL BARAN CHATT OPADHYAY PAGE 3 REVENUE AUTHORITIES. WE THUS HOLD THAT THIS REVENUE S APPEAL RAISING SOLE ISSUE OF 73,49,434/- DESERVE TO BE DISMISSED IN TERMS OF LOW TAX 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 OPEN COURT AT THE CLOSE OF HEAR ING ON TUESDAY 1 ST SEPTEMBER, 2020 SD/- SD/- ( ') ($% ') (J.SUDHAKAR REDDY) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) *DKP SR.P.S. &- 01 / 09/ 20 20 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ACIT, CIR-1(1), 1 ST FLOOR, AAYKAR BHAWAN, L.C. ROAD, DHANBAD-826001 2. /RESPONDENT-SHRI GOPAL BARAN CHATTOPADHYAY 505, 5 TH FLOOR, SHANTI BHAWAN, BANK MORE, DHANBAD-8 76001 3. 0 3 / CONCERNED CIT RANCHI 4. 3- / CIT (A) RANCHI 5. 6 %%0, 0, / DR, ITAT, RANCHI 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, 0,