DY. C.I.T.1(2), RAIPUR (CG) V. M/S HIRA POWER & STEEL LTD., RAIPUR (CG)

ITA 361/BIL/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9001 (ITAT-RAIPUR)
• Duration Of Justice: 3 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 14-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R M MUJUMDAR
• Assessee Lawyers: R B DOSHI
• Keywords: Tax effect
• Section: 40A(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH , RAIPUR BEFORE : SHRI N.S.SAINI, A M & SHRI PAV AN KUMAR GADALE, J M ITA NO. 3 61 / RPR /20 1 4 (ASSESSMENT YEAR : 20 1 0 - 20 1 1 ) A CIT - 3 (1), RAIPUR(CG) V S H IRA POWER AND STEEL . LTD. 557A, URLA INDUSTRIAL AREA, RAIPUR ( CG) P AN NO. : A A BCJ 0138 Q (APPELLANT ) .. TSEDNEPSER REVENUE BY : SHRI R.M.MUJUMDAR, DR ASSESSEE BY : SHRI R.B.DOSHI , AR DATE OF HEARING : 1 7 / 01 /201 8 DATE OF PRONOUNCEMENT 18 / 01 /201 8 / O R D E R PER SHRI N.S.SAINI , A M : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A ), RAIPUR , DATED 26.09.2014 FOR THE ASSESSMENT YEAR 20 1 0 - 201 1 . 2. THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL : - A. 'WHETHER IN LAW A ND ON FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS. 9,84,000/ - U/S 14A OF THE IT ACT, 1961?' B. 'WHETHER IN LAW AND ON FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN DELETING THE D ISALLOWANCE OF RS.4,42,268/ - MADE BY THE AO ON ACCOUNT OF FINES/PENALTIES, CHARITY & DONATION?' C. 'WHETHER IN LAW AND ON FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN RESTRICTING DISALLOWANCE U/S 40A(3) OF THE IT ACT, 1961 TO RS.2,8 5,99 7 / - THEREBY GIVING RELIEF OF RS.6,53,000/ - ?' D. 'THE ORDER OF THE LD. CIT (A) IS ERRONEOUS BOTH IN LAW AND ON FACTS?' E. 'ANY OTHER GROUND THAT MAY BE ADDUCED AT THE TIME OF HEARING?' 3. AT THE TIME OF HEARING , THE AR OF THE ASSESSEE SUBMITTED T HAT THE RELIEF GRANTED BY THE CIT(A) IN THIS APPEAL IS RS. 20,81, 268/ - AND THE TAX EFFECT OF WHICH IS RS. 6,23,780 / - , THEREFORE, IN VIEW OF THE CBDT CIRCULAR NO.21/2015, DATED 10 TH DECEMBER, 2015, APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND, HENCE, L IABLE TO BE DISMISSED. ITA NO. 3 61 /RPR/201 4 2 4. ON THE OTHER HAND, LD.DR FOR THE REVENUE AGREED WITH THE SUBMISSION OF LD.AR OF THE ASSESSEE. 5. WE FIND THAT THE CBDT IN CIRCULAR NO.21/2015, DATED 10 TH DECEMBER, 2015, HAS STATED THAT, AS A MEASURE FOR REDUCING LITIGATION, IT WA S INCREASING THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT. THE SAID LIMIT FOR NOT FILING APPEAL TO THE TRIBUNAL WAS FIXED AT RS.10 LAKHS. THE CBDT HAS FURTHER STATED THAT THE S AID INSTRUCTION SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AND THAT ALL APPEALS BELOW THE SPECIFIED TAX LIMITS SHOULD BE WITHDRAWN/NOT PRESSED. HOWEVER, APPEALS BEFORE THE SUPREME COURT ARE TO BE GOVERNED BY THE LIMITS OPERATIVE AT THE TIME THAT THE AP PEAL WAS FILED. THE SAID CIRCULAR OF THE CBDT IS BINDING ON THE OFFICERS OF INCOME TAX DEPARTMENT. IN VIEW OF THIS, WE HOLD THAT THE PRESENT APPEAL OF THE REVENUE BEFORE THE TRIBUNAL IS NOT MAINTAINABLE AND, HENCE, WE DISMISS THE SAME IN LIMINE . 6 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON THURSDAY , THE 18 TH DAY OF JANUARY, 2018 AT RAIPUR. SD/ - ( PAVAN KUMAR GADALE ) SD/ - (N. S. SAINI) / JUDICIAL MEMBER / ACCO UNTANT MEMBER RAIPUR ; DATED 18 / 01/2018 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) INCOME TAX APPELLATE TRIBUNAL, RAIPUR 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A) , 4. / CIT 5. , , RAIPUR / DR, ITAT, RAIPUR 6. / GUARD FILE. //TRUE COPY//