ACIT Non Corporate Circle 3, CHENNAI V. Spero Property Management, CHENNAI

ITA 3151/CHNY/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8682 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 22-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRINIRANJANI
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , .. , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI DUVVURU R.L.REDDY, JUDICIAL MEMBER ./ ITA NO.3151/CHNY/2017 /ASSESSMENT YEAR: 2012-13 THE ASST. COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-3, CHENNAI. VS. M/S.SPERO PROPERTY MANAGEMENT, NO.12/1, BASHYAM BASHEER, AHAMED STREET, ALWARPET, CHENNAI-600 018. [PAN: AAAFG 4225 B] ( # /APPELLANT) ( $%# /RESPONDENT) DEPARTMENT BY : MR.SRIDHAR DORA, JCIT ASSESSEE BY : MS.S.SRINIRANJANI, ADV. ' /DATE OF HEARING : 30.08.2019 ' /DATE OF PRONOUNCEMENT : 10.09.2019 / O R D E R PER DUVVURU R.L.REDDY, JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, CHENNAI DAT ED 19.09.2017 FOR THE AY 2012-13, THIS APPEAL CALL INTO QUESTION CORR ECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONER OF INC OME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN T HIS APPEAL DOES NOT EXCEED RS.50,00,000/- IN THIS APPEAL. TAX EFFECT CASE < RS.50.00 LAKHS :- 2 -: 2. 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, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE, IS RS.50,00,000/- OR LESS. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE C ONCESSION BY THIS CBDT CIRCULAR, THIS APPEAL MUST BE DISMISSED AS WIT HDRAWN. 4. 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. 5. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE 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 F ROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 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: TAX EFFECT CASE < RS.50.00 LAKHS :- 3 -: 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 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. 6. 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. 7. THE HONBLE SUPREME COURT IN THE CASE OF THE COMM ISSIONER OF INCOME TAX-5, NEW DELHI VS. KESHAV POWER LTD., IN S LP 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. 8. THE LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE TAX EFFECT CASE < RS.50.00 LAKHS :- 4 -: 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 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. 9. 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 T O SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, APPEAL FILED BY THE REVENUE IS FOUND TO BE NON-MAINTAINABLE. 10. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 10 TH DAY OF SEPTEMBER, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) . /ACCOUNTANT MEMBER ( / 0 . . 3 ) ( DUVVURU R.L.REDDY ) . /JUDICIAL MEMBER TAX EFFECT CASE < RS.50.00 LAKHS :- 5 -: /CHENNAI, 5 /DATED: 10 TH SEPTEMBER, 2019. TLN ' $67 87 /COPY TO: 1. # /APPELLANT 4. 9 /CIT 2. $%# /RESPONDENT 5. 7 $ /DR 3. 9 ( ) /CIT(A) 6. /GF