ITO, V. R. Narendra,

ITA 338/BANG/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8744 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-01-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 15-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

ITA.338/BANG/2013 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI. VIJAYPAL RAO, JUDICIAL MEMBER 1. I.T.A NO.338/BANG/2013 2. I. T. A. NO.339/BANG/2013 (ASSESSMENT YEAR : 2005-06) INCOME TAX OFFICER, WARD -1(1), CHAMARAJANAGAR .. APPELLANT V. 1. SHRI. R. NARENDRA PAN : ALCPN1972B 2. SMT. ASHA NARENDRA, PAN : ALRPN9157D NO.7/479-D, VENKATESHWARA NILAYA, SOUTHERN EXTENSION, KOLLEGALA .. RESPONDENTS ASSESSEE BY : SHRI. G. VENKATESH, ADVOCATE REVENUE BY : DR. P. K. SRIHARI, ADDL. CIT HEARD ON : 06.01.2016 PRONOUNCED ON : 06.01.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : ITA.338/BANG/2013 PAGE - 2 THESE ARE APPEAL FILED BY REVENUE DIRECTED AGAINST ORDERS DATED 30.11.2012 OF CIT (A), MYSORE, FOR THE A. Y. 2005- 06, IN RESPECT OF ASSESSES WHO ARE HUSBAND AND WIFE. 02. WHEN THE APPEALS WERE TAKEN UP FOR HEARING, TH E BENCH POINTED OUT TO THE PARTIES THAT TAX EFFECT INVOLVED IN THESE AP PEALS WAS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEAR, THEREFORE B Y VIRTUE OF CIRCULAR NO.21/2015, DT.10.12.2015, IS BELOW THE LIMIT LAID DOWN FOR FILING APPEALS BEFORE THIS TRIBUNAL. 03. LD. DR SUBMITTED THAT PARA 8 OF THE CIRCULAR WA S NOT APPLICABLE IN THESE CASE. THEREFORE HE DID NOT OBJECT TO THE APP LICATION OF THE CIRCULAR. 04. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTEN TIONS. PARA 4 OF THE CIRCULAR NO.21/2015 (SUPRA) IS REPRODUCED HEREUNDER : 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFER ENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BE EN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AG AINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRE D TO AS DISPUTED ISSUES). HOWEVER THE TAX WILL NOT INCLU DE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST IT SELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EF FECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOM E, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDIT IONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAI NST. ITA.338/BANG/2013 PAGE - 3 05. THE TAX EFFECT ON THE ISSUES THAT ARE DISPUTED BY THE REVENUE IS LESS THAN RS.10 LAKHS FOR THE IMPUGNED ASSESSMENT YEAR. ASSESSEES HAD NOT CHALLENGED THE CONSTITUTIONAL VALIDITY OF ANY PROVI SIONS OF THE ACT NOR HAD THEY CHALLENGED THE LEGALITY OF THE CIRCULAR. REVE NUE HAS NOT BROUGHT TO OUR NOTICE ANYTHING TO SHOW THAT THE APPEALS AROSE ON AN ISSUE EMANATING FROM ANY REVENUE AUDIT OBJECTIONS ACCEPTED BY THE D EPARTMENT. ADDITION GIVING RISE TO THE APPEAL DOES NOT RELATE TO ANY UN DISCLOSED FOREIGN ASSETS / BANK ACCOUNTS. THUS WE FIND THAT CIRCULAR NO.21/ 2 015 (SUPRA) IS SQUARELY APPLICABLE IN THESE CASES. HOWEVER IF REVENUE FIND THAT APPEALS ARISE OUT OF ISSUES EMANATING FROM AUDIT OBJECTION IT WILL BE FREE TO FILE MPS FOR RECALLING THIS ORDER. 06. WITH THE ABOVE OBSERVATIONS APPEALS OF THE REVE NUE ARE THEREFORE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 6TH DAY OF JA NUARY, 2016. SD/- SD/- (VIJAYPAL RAO) (ABRAH AM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER MCN ITA.338/BANG/2013 PAGE - 4 COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR