DCIT CENTRAL CIRCLE 2, MADURAI V. ADSORBENT CARBONS PRIVATE LIMITED, TUTICORIN

ITA 2998/CHNY/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5801 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 01-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J PAVITHRAN KUMAR
• Assessee Lawyers: H YESHWANTH KUMAR
• Keywords: Bonafide belief; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , . , & BEFORE SHRI V.DURGA RAO , JUDICIAL MEMBER AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.2998/CHNY/2018 & C.O.NO.8/ CHNY/2019 ( / ASSESSMENT YEAR: 2013-14) THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, MADURAI. VS M/S. ADSORBENT CARBONS PVT. LTD., C-92, SIPCOT INDUSTRIAL COMPLEX, TUTICORIN-628 008. PAN:AABCV 0223A ( /APPELLANT) /RESPONDENT/ CROSS OBJECTOR / APPELLANT BY : MR. J.PAVITHRAN KUMAR , JCIT /RESPONDENT BY : MR. H.YESHWANTH KUMAR, C.A /DATE OF HEARING : 29.09.2020 /DATE OF PRONOUNCEMENT : 29.09.2020 / O R D E R PER G.MANJUNATHA, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE AND CROSS OBJECTIO N FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-19, CHENNAI DATED 17.07.2018 A ND THEY PERTAIN TO THE ASSESSMENT YEAR 2013-14. 2. IT IS STATED BEFORE US THAT THE TAX EFFECT IN TH IS CASE IS LESS THAN RS. 50 LAKHS AND THEREFORE, THE CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 ISSUED BY THE CENTRAL BOARD OF DIRECT T AXES (CBDT) IN EXERCISE OF ITS POWER VESTED UNDER SECTION 268A(1) OF THE INCOME TAX ACT, 1961 COMES INTO PLAY WHEREIN, THE MONETARY LIMIT FOR FILING 2 ITA NO.2998/CHNY/2018 & C.O.NO.8/CHNY/2019 THE APPEAL BY THE REVENUE BEFORE THE ITAT AND VARIO US HIGH COURTS AS WELL AS APEX COURT ARE REVISED WITH AN OBJECT OF THE REDUCING THE TAX LITIGATION. IN THE SAID CIRCULAR, IT IS STATE D THAT IN CASES WHERE THE TAX EFFECT IN THE APPEALS TO BE FILED BEFORE THE AP PELLATE TRIBUNAL DOES NOT EXCEED RS. 50 LAKHS APPEALS SHOULD NOT BE FILED. THUS, TAKING NOTE OF CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 AND CONSIDERING THE FACT THAT THE TAX EFFECT IN THE INS TANT APPEAL IS LESS THAN RS. 50 LAKHS, THE PRESENT APPEAL DESERVES TO B E DISMISSED AS NOT PRESSED / NOT MAINTAINABLE. HOWEVER, WE MAKE IT CLEAR THAT THE ISSUES RAISED IN THE INSTANT APPEAL IS LEFT OPEN TO BE EXAMINED IN THE APPROPRIATE PROCEEDINGS, IF ARISES, IN FUTURE. AT THE SAME TIME, WE ALSO MAKE IT CLEAR THAT IF THE APPEALS FALL IN ANY OF THE EXCEPTIONS REFERRED TO IN THE ABOVE SAID CBDT CIRCULAR, THE RE VENUE IS AT LIBERTY TO MOVE AN APPLICATION FOR RECALLING THE OR DER IF SO ADVISED. ACCORDINGLY, IN THE LIGHT OF CBDT CIRCULAR NO. 17 O F 2019 DATED 08.08.2019, THE APPEAL STANDS DISMISSED. C.O. NO.8/CHNY/2019 : 3. WE FIND THAT THERE IS A DELAY OF 8 DAYS IN FILIN G CROSS OBJECTION FILED BY THE ASSESEE, FOR WHICH NECESSARY PETITION ALONG WITH AFFIDAVIT HAS BEEN FILED FOR CONDONATION OF DELAY. THE REASO NS GIVEN BY THE ASSESSEE FOR NOT FILING CROSS OBJECTION WITHIN THE TIME ALLOWED UNDER 3 ITA NO.2998/CHNY/2018 & C.O.NO.8/CHNY/2019 THE ACT IS UNDER A BONAFIDE BELIEF. THEREFORE, WE C ONDONE THE DELAY IN FILING CROSS OBJECTION FILED BY THE ASSESSEE AND ADMIT THE SAME. SINCE, WE DISMISSED THE APPEAL OF THE REVENUE AS NO T MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT, THE CROSS OBJECTION F ILED BY THE ASSESSEE DOES NOT SURVIVE AND ACCORDINGLY CROSS OBJ ECTION FILED BY THE ASSESSEE IS DISMISSED. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AND CROSS OBJECTION BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH SEPTEMBER, 2020 SD/- SD/- ( . ) ( . ) (V.DURGA RAO) ( G.MANJUNATHA ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 29 TH SEPTEMBER, 2020 DS *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 2 /DR 6. /GF .