The DCIT(INT.Taxn), Kochi V. Sri.Ameer Ahmed, Kochi

ITA 298/COCH/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9336 (ITAT-COCHIN)
• Duration Of Justice: 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 04-04-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 22-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S BINDHU
• Assessee Lawyers: RAJINARK P
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJAR I, AM & SHRI GEORGE GEORGE K, JM ITA NO. 298 /COCH/201 8 : ASST.YEAR 2012 - 2013 THE DY.COMMISSIONER OF INCOME - TAX (INTERNATIONAL TAXATION), KOCHI. VS. SRI.AMEER AHMED 3 RDS, NEDUNGADAN RESIDENCY, ST.BENEDICT RD KOCHI 682 018. PAN : ABCPA4737H . (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.A.S.BINDHU, SR.DR RESPONDENT BY : SRI. RAJINARK P. DATE OF HEARING : 04.04 .2018 DATE OF PRONOUNCEMENT : 04 .0 4 .2019 O R D E R PER GEORGE GEORGE K, JM THIS APPEAL AT THE INSTANCE OF THE REVENUE IS DIRECTED AGAINST THE COMMISSIONER OF INCOME - TAX (APPEALS) S ORDER DATED 05.04.2018 . THE RELEVANT ASSESSMENT YEAR IS 2012 - 2013 . 2. AT THE VERY OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS APPEAL FILED BY THE DEPARTMENT IS BELOW THE PRESCRIBED LIMIT MENTIONED IN CIRCULAR NO.3/2018 (CIRCULAR DATED 11.07.2018) FOR FILING APPEAL BEFORE THE APPELLATE T RIBUNAL. IT WAS SUBMITTED BY THE LEARNED COUNSEL THAT THE ISSUE DISPUTED IN THIS APPEAL IS REGARDING COMPUTATION OF LONG TERM CAPITAL GAIN FOR A SUM OF RS.1,76,98,500. IT WAS FURTHER SUBMITTED BY THE LEARNED COUNSEL THAT SINCE THERE WAS NO INDEXATION OF CO ST OF ITA NO. 298 / COCH /201 8 SRI.AMEER AHMED . 2 ACQUISITION, THE ASSESSEE WOULD BE LIABLE TO BE TAXED AT THE RATE OF 10%. IT STATED THAT IN SUCH A CASE, THE TAX EFFECT WOULD BE ONLY RS.17,69,850. THEREFORE, IT WAS CONTENDED THAT SINCE THE TAX EFFECT IN THIS CASE IS BELOW THE SUM OF RS.20 LAKH, THE DEPARTMENT CANNOT FILE AN APPEAL BEFORE THE TRIBUNAL IN VIEW OF THE ABOVE MENTIONED CIRCULAR. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE PRESENT WAS DULY HEARD. 4 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IT IS OBSERVED THAT THE TAX EFFECT IN THE APPEAL FILED BY THE REVENUE IS LESS THAN RS. 20 LAKHS AND THEREFORE THE CIRCULAR NO. 3/2018 DATED 11.07.2018 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IN EXERCISE OF ITS POWER VESTED UNDER SEC. 268A(1) OF THE I. T. ACT COMES INTO PLAY, WHEREIN, THE MONETARY LIMIT FOR FILING THE APPEAL ( S ) BY THE REVENUE BEFORE THE ITAT AND VARIOUS HIGH COURTS AS WELL AS APEX COURT ARE REVISED WITH AN OBJECT OF REDUCING THE TAX LITIGATION. VIDE PARA 3 OF THE SAID CIRCULAR (SUPRA) , I T IS STATED THAT IN CASES WHERE THE TAX EFFECT IN THE APPEAL TO BE FILED BEFORE THE APPELLATE TRIBUNAL DOES NOT EXCEED RS. 20 LAKHS , APPEAL SHOULD NOT BE FILED. THUS , TAKING A NOTE OF CBDT CIRCULAR NO. 03/2018 DATED 11.07.2018 AND CONSIDERING THE FACT THAT THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN R S. 20 LAKHS, THE PRESENT APPEAL DESERVE S TO BE DISMISSED , AS NOT MAINTAINABLE. HOWEVER, WE MAKE IT CLEAR THAT THE ISSUE ( S ) RAISED IN THE INSTANT APPEAL IS LEFT OPEN TO BE EXAMINED IN THE ITA NO. 298 / COCH /201 8 SRI.AMEER AHMED . 3 APPROPRIATE PROCEEDINGS, IF ARISES, IN FUTURE. AT THE SAME TIME , WE ALSO M AKE IT CLEAR THAT IF THE APPEAL FALL IN ANY OF THE EXCEPTIONS REFERRED TO IN THE ABOVE SAID CBDT CIRCULAR, THE REVENUE IS AT LIBERTY TO MOVE AN APPLICATION FOR RECALLING THE ORDER, IF SO, ADVISE D. 5 . ACCORDINGLY IN THE LIGHT OF CBDT CIRCULAR NO. 03/2018 DATED 11.07.2018, THE APPEAL STAND S DISMISSED. 6 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 04 TH DAY OF APRIL , 2019 . SD/ - SD/ - ( CHANDRA POOJARI ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN ; DATED : 04 TH APRIL , 2019 . DEVDAS* COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPELLANT 2. THE RESPONDENT. 3. THE PR.CIT, KOCHI . 4. THE CIT(APPEALS) - II, KOCHI . 5. DR, ITAT, COCHIN 6 . GUARD FILE.