Asst.Director of Income-tax (International taxation)-II, Hyderabad V. M/s. Object Technology Solutions INC., Hyderabad

ITA 303/HYD/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6586 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 26-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.303/HYD/2014 ASSESSMENT YEAR 2009-2010 ASST. DIRECTOR OF INCOME TAX-II (INTERNATIONAL TAXATION), HYDERABAD. VS. M/S. OBJECT TECHNOLOGY SOLUTIONS INC, HYDERABAD. PAN AAACO9917F (APPELLANT) (RESPONDENT) FOR REVENUE : MR. B. KURMI NAIDU FOR ASSESSEE : - NONE - DATE OF HEARING : 10 .0 5 .2016 DATE OF PRONOUNCEMENT : 10 .0 5 .2016 ORDER PER D. MANMOHAN, V.P. THIS APPEAL IS FILED AT THE INSTANCE OF THE REVENUE AND IT PERTAINS TO ASSESSMENT YEAR 2009-201 0. AT THE TIME OF HEARING, IT IS NOTICED THAT THE REVE NUE HAS FILED A LETTER DATED 05.05.2016, ACCORDING TO WHICH THE TOTAL TAX EFFECT WORKED OUT BY THE REVENUE IS RS.5, 67,499, AND CONSEQUENTLY, THE TAX IN THIS APPEAL BY THE REV ENUE IS LESS THAN RS.10 LAKHS. HENCE, THE CIRCULAR ISSUED B Y CBDT VIDE NO.21/2015 DATED 10 TH DECEMBER, 2015 BEARING F.NO.279/MISC.142/2007-ITI(PT) IS APPLICABL E. 2 ITA.NO.303/HYD/2014 M/S. OBJECT TECHNOLOGY SOLUTIONS INC HYDERABAD. 2. SINCE IT IS NOT IN DISPUTE THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS, THE CIRCULAR ISSUED BY THE CBDT IS BINDING ON THE REVENUE AND THE PRESE NT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AS WITHDRAWN. WE HAVE ALREADY DISPOSED OF NUMBER OF SIMILAR MATTERS, WHEREIN THE CIRCULAR ISSUED BY THE CBDT HAS BEEN CONSIDERED, TO HOLD THAT THE APPEALS FILED BY THE REVENUE DESERVE TO BE DISMISSED AS WITHDRAWN WHEREV ER THE TAX EFFECT IS LESS THAN RS.10 LAKHS. FOR THE SA KE OF CONVENIENCE, WE EXTRACT THE RELEVANT PORTION OF THE ORDER PASSED BY THE ITAT, HYDERABAD BENCH IN THE CASE OF SHRI RAJESH YADAV PASHAM, IN ITA NO.1379/HYD/2015 DATED 2.2.2016 - 3. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S.268A OF THE INCOME TAX ACT,1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX AUTHORITIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS. IN T HE LIGHT OF THE CIRCULAR DATED 10.12.2015, ISSUED BY THE CBDT IN EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTION (1) OF S.268A, WE ARE OF THE VIEW THA T THE APPEAL FILED HEREIN SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE REVENUE EFFECT IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CIRCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE 3 ITA.NO.303/HYD/2014 M/S. OBJECT TECHNOLOGY SOLUTIONS INC HYDERABAD. CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEAL OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUNCED IN THE OPEN COURT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEAL FILED BY THE REVENUE. ORDER PRONOUNCED IN THE OPEN COURT ON 10.05.201 6. SD/- SD/- (B. RAMAKOTAIAH) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD DATED 10 TH MAY, 2016 VBP/- COPY TO 1. ASST. DIRECTOR OF INCOME TAX - II, (INTERNATIONAL TAXATION), 3 RD FLOOR, D-BLOCK, I.T. TOWERS, A.C. GUARDS, HYDERABAD. 2. M/S. OBJECT TECHNOLOGY SOLUTIONS INC, PHOENIX CELL, HITECH CITY, GACHIBOWLI, HYDERABAD. 3. CIT(A) - V, HYDERABAD. 4. DIT (IT), HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE