DCIT, CHENNAI V. Smt. Shobana R. Ravi, CHENNAI

ITA 2690/CHNY/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3293 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 16-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . , . , BEFORE SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER SL. NO. ITA NO. ASSESSMENT YEAR APPELLANT RESPONDENT 1-2 1308/CHNY/2017 2010-11 THE ACIT, CORPORATE CIRCLE-5(2), CHENNAI. SMT.SHOBANA R. RAVI, NO.54, BEACH ROAD, KALAKSHETRA COLONY, CHENNAI-600 090 [PAN: ARCPS 6057 Q] 2690/CHNY/2016 2011-12 3 2066/CHNY/2017 2011-12 THE ACIT, CENTRAL CIRCLE-2, COIMBATORE-641 018. M/S.SREE DAKSHA PROPERTY DEVELOPERS INDIA PVT. LTD., NO.1, GANDHI LAYOUT, SRI VEERAS TOWER, MARUTHAMALAI ROAD, VADAVALLI, COIMBATORE-641 046. [PAN: AAOCS 1220 R] 4-7 3439/CHNY/2018 2007-08 THE ACIT, CENTRAL CIRCLE-3(4), CHENNAI. SHRI M. SUKUMAR REDDY, 3 RD, 6A, RAJPARIS, AISHWARYA RAJ APARTMENT, RANJEETH ROAD, KOTTURPURAM, CHENNAI-600 085. [PAN: AABHM 8414 M] 3440/CHNY/2018 2010-11 3441/CHNY/2018 2011-12 3442/CHNY/2018 2012-13 8 & 9 72/CHNY/2019 2009-10 THE ACIT, CENTRAL CIRCLE-3(4), CHENNAI. SHRI M. SUKUMAR REDDY, 3 RD, 6A, RAJPARIS, AISHWARYA RAJ APARTMENT, RANJEETH ROAD, KOTTURPURAM, CHENNAI-600 085. [PAN: ADZPM 1863 H] 73/CHNY/2019 2010-11 10 & 11 CO NO.27/CHNY/2019 (IN ITA NO.72/CHNY/2019) 2009-10 SHRI M. SUKUMAR REDDY, 3 RD, 6A, RAJPARIS, AISHWARYA RAJ APARTMENT, RANJEETH ROAD, KOTTURPURAM, CHENNAI-600 085 [PAN: ADZPM 1863 H] THE ACIT, CENTRAL CIRCLE-3(4), CHENNAI. CO NO.28/CHNY/2019 (IN ITA NO.73/CHNY/2019) 2010-11 ! / APPELLANT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.NO. NAME OF COUNSEL 1-2 MR. R.CLEMENT RAMESH KUMAR, ADDL.CIT 3-11 MR.SAILENDRA MAMIDI, PCIT $% ! /RESPONDENT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.NO. NAME OF COUNSEL 1-2 MR. R.VENKATESH, FCA 3 MR.N.ARJUN RAJ, CA 4-11 MR.M.MURALEEDHARA REDDY & MR.V.NAGAPRASAD, ADVS. ! / DATE OF HEARING : 22 - 08 - 2019 ! / DATE OF PRONOUNCEMENT : 26 - 08 - 2019 TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 2 -: / O R D E R PER SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER : THE REVENUES APPEAL IN ITA NO.2066/CHNY/2017, IS DELAYED BY FIVE DAYS, FOR WHICH, THE AO HAS FILED THE AFFIDA VIT REQUESTING FOR CONDONATION OF DELAY, TO WHICH, THE LD.COUNSEL OF T HE ASSESSEE HAS NOT RAISED ANY SERIOUS OBJECTION. CONSEQUENTLY, THE DEL AY OF 05 DAYS IN FILING OF THE APPEAL STANDS CONDONED AND THE APPEALS IS DI SPOSED OFF ON MERITS. 2. THESE 09 APPEALS AND 02 CROSS OBJECTIONS PERTA IN TO THE APPEALS ARE FILED BY VARIOUS ASSESSING OFFICERS, ALL THESE APPEALS CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONERS OF INCOME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS.50,00,000/- IN EAC H OF THESE APPEALS. THE CROSS OBJECTIONS TAKEN UP FOR HEARING ARE ONLY SUCH CROSS OBJECTIONS AS EMANATE FROM THESE APPEALS AND ARE BROADLY IN SU PPORT OF THE ORDERS PASSED BY THE COMMISSIONER (APPEALS). 3. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC.1 42/2007-ITJ(PT) DATED 8 TH AUGUST, 2019, THE INCOME TAX DEPARTMENT HAS FURTHE R LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECIS IONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST T HE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OV ERALL TAX EFFECT, TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 3 -: EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE, IS RS 50,00,000 OR LESS. 4. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE C ONCESSION BY THIS CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRU CTUOUS. 5. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 6. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STAND ALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO . 3/2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8THAUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOM E-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: SL.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMITS (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. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARI SE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESS MENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEED S THE MONETARY LIMIT SPECIFIED IN TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 4 -: PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN A SSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPEC IFIED IN PARA-3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSE SSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE AS SESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 7. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INT ACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 8. THE HONBLE SUPREME COURT IN THE CASE OF THE COMM ISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., IN SL P NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)TMI 811(SC) HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.08.2019 HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LE SS THAN RS.2/- CRORES, GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT, WE SEE NO REASON TO IN TERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITION IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. 9. THE LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE C OVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CB DT CIRCULAR (SUPRA), EXCEEDS RS.50,00,000/-. NONE OPPOSES THIS PRAYER; W E ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LI BERTY TO POINT OUT THE TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 5 -: CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY OTHER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS RE GARD. 10. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF COMMIS SIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE, AND AS ALL THE RELATED CROSS-O BJECTIONS OF THE ASSESSEE ARISE ONLY AS A RESULT OF THOSE APPEALS AN D MERELY SUPPORT THE ORDER OF THE CIT(A), THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. 11. IN THE RESULTS, ALL THE APPEALS ARE DISMISSED AS W ITHDRAWN AND THE CROSS-OBJECTIONS ARE DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED ON THE 26 TH DAY OF AUGUST, 2019, IN CHENNAI. SD/- SD/- ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER ( , - . . . ) (DUVVURU R.L. REDDY) 0 /JUDICIAL MEMBER /CHENNAI, 1 /DATED: 26 TH AUGUST, 2019. TLN ! $023 43 /COPY TO: 1. /APPELLANT 4. 5 /CIT 2. $% /RESPONDENT 5. 3 $00 /DR 3. 5 ( ) /CIT(A) 6. 8 /GF