The ITO, Ward-1, Aluva, Aluva V. Smt.Archana Vasudevan, Aluva

ITA 323/COCH/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9561 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 24-09-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 16-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: FATHER
• Keywords: Tax effect
• Section: 201

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFOR E S/ SHRI CHANDRA POOJARI , AM & GEORGE GEORGE K., J M I .T . A. NO. 323 / COCH/ 201 7 & C.O. NO.30/COCH/2017 ASSESSMENT YEAR : 20 0 7 - 08 THE I NCOME - TAX OFFICER, WARD - 1, ALUVA. VS. SMT. ARCHANA VASUDEVAN, POOTHERY HOUSE, KODIKUTHUMALA, ASHOKAPURAM, ALUVA REPRESENTED BY FATHER AND POWER OF ATTORNEY HOLDER OF THE ASSESSEE SHRI P. VASUDEVAN. [PAN:ALTPP 3541R] (REVENUE - APPELLANT) ( ASSESSEE - RESPONDENT) REVENUE BY SMT. A.S. BINDHU, SR. DR ASSESSEE BY SHRI T.M. SREEDHARAN, SR. ADV. D ATE OF HEARING 2 4 /09/2019 DATE OF PRONOUNCEMENT 24 /09/2019 O R D E R PER CHANDRA POOJARI, A M : THIS APPEAL FILED AT THE INSTANCE OF THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE OR DER OF THE CIT(A) - II, KOCHI DATED 20/03/ 2017 . THE RELEVANT ASSESSMENT YEAR IS 20 0 7 - 08 . 2 . THE LD. AR HAS SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT PRESCRIBED IN CBDT CIRCULAR DATED 08/08/2019 FOR FILING AN APPEAL BEFORE THE ITAT . I.T.A. NO . 323/ COCH/201 7 & C.O. NO.30/COCH/2017 2 3 . IT IS OBSERVED THAT AS PER THE LAT EST CIRCULAR OF CBDT, THE ASSESSING OFFICER IS REQUIRED TO FILE AN APPEAL BEFORE ITAT ONLY IF THE TAX EFFECT IS MORE THAN 50 LAKHS. I T IS OBSERVED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS. 5 0 LAKHS . PURSUANT TO AMENDMENT DATED 20/08/2018 TO CI RCULAR NO. 3 OF 2018 DATED 11/07/2018 OF , THE CIRCULAR NO. 17 /201 9F.NO.279/MIS.142/2007 - ITJ(PT.) DATED 08/08 /2019 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IN EXERCISE O F ITS POWER VESTED U/S. 268 OF THE INCOME TAX ACT, 1961 COMES INTO PLAY, WHERE IN, THE MONETARY LIMIT FOR FILING INCOME TAX APPEALS BY THE DEPARTMENT BEFORE THE I NCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPECIFIED. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: SL. NO. APPEALS/SLPS IN INCOME - TAX MATTERS MONETARY LIMIT (RS.) 1. BEFORE APPELLATE TRIBUN AL 50,00,000 2. BEFORE HIGH COURT 1,00,00,000 3. BEFORE SUPREME COURT 2,00,00,000 3 .1 FURTHER, WITH A VIEW TO PROVIDE PARTITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEA R VIS - - VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: I.T.A. NO . 323/ COCH/201 7 & C.O. NO.30/COCH/2017 3 THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTE D ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF THE ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS MONETARY LIMIT SPECIFIED IN PAR A 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE 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 ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PAR A 3. IN CASE WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 3 .2 THUS, TAKING A NOTE OF CBDT CIRCULAR NO. 17 /201 9 DATED 08/08/2019 AND CONSIDERING THE FACT THAT THE TAX EFFECT IN THE INST ANT APPEAL IS LESS THAN RS. 5 0 LAKHS, THE PRESENT APPEAL DESERVES 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 APPROPRIATE PROCEEDINGS, IF ARISES, IN FUTURE . AT THE SAME TIME, WE ALSO MAKE IT CLEAR THAT IF THE APPEAL FALLS 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, ADVISED. 3 .3 ACCORDINGLY IN THE LIGH T OF CBDT CIRCULAR NO. 17 /201 9 DATED 08/08/2019 , THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. SINCE WE HAVE DISMISSED THE APPEAL OF THE REVENUE, THE CROSS OBJECTION FILED BY THE ASSESSEE IN C.O. NO. 30/COCH/2017 WHICH IS ESSENTIALLY SUPPORTING THE OR DER OF THE CIT(A) IS DISMISSED AS INFRUCTUOUS. IT IS ORDERED ACCORDINGLY. I.T.A. NO . 323/ COCH/201 7 & C.O. NO.30/COCH/2017 4 4 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24 TH SEPTEMBE R, 2019 SD/ - SD/ - ( GEORGE GEORGE K. ) ( CHANDRA POOJARI ) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 24 TH SEPTEMBER, 2019 GJ COPY TO: 1 . SMT. ARCHANA VASUDEVAN, POOTHERY HOUSE, KODIKUTHUMALA, ASHOKAPURAM, ALU VA, REPRESENTED BY FATHER AND POWER OF ATTORNEY HOLDER OF THE ASSESSEE SHRI P. VASUDEVAN. 2.THE INCOME - TAX OFFICER, WARD - 1, ALUVA. 3. THE COMMISSIONER OF INCOME - TAX (AP P EALS) - II, KOCHI. 4. THE PR. COMMISSIONER OF INCOME - TAX, KOCHI. 5. D. R., I.T.A.T., COCHIN BENCH, COCHIN. 6 . GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T., COCHIN