Dy. Commissioner of Income Tax-2, International Taxation, Hyderabad V. Sashi Parvatha Reddi, Hyderabad

ITA 376/Hyd/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 3000 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 23-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M NARMADA
• Keywords: Tax effect
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 376/HYD/2018 ASSESSMENT YEAR: 2008-09 DY. COMMISSIONER OF INCOME- TAX 2, INTERNATIONAL TAXATION, HYDERABAD. VS. SASHI PARVATHA REDDI, HYDERABAD. PAN ADYPR 7774H (APPELLANT) (RESPONDENT) REVENUE BY : SMT. M. NARMADA ASSESSEE BY : MS. SUVIBHA NOLKHA DATE OF HEARING 18-05-2017 DATE OF PRONOUNCEMENT 23-05-2017 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) 1 0, HYDERABAD, DATED 22.12.2017, FOR THE AY 2008-09. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS APPEAL IS LES S THAN RS. 10 LAKHS AND THEREFORE, REVENUES APPEAL IS LIABLE TO BE DIS MISSED IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015. THIS CIRCULAR REGARDING THE PECUNIARY LIMIT FOR PREFERRING THE AP PEAL BEFORE THE ITAT BY THE REVENUE HAS NOW STATUTORY FORCE UNDER SEC. 2 68A OF THE INCOME-TAX ACT, 1961. ON GOING THROUGH THE ASSESSME NT ORDER, WE FIND THAT THE TOTAL INCOME ASSESSED BY THE A.O. IS AT RS. 1,84,95,713/- AND THE TAX EFFECT INVOLVED IN THIS A PPEAL FILED BY THE 2 ITA NO. 376 /HYD/2018 SASHI PARVATHA REDDI, HYD. REVENUE IS LESS THAN RS. 10 LAKHS AND THIS POSITION HAS NOT BEEN DISPUTED BY THE LEARNED DR. THEREFORE, WE ARE SATI SFIED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. 3. THE CBDT VIDE CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE THE TRIBUNAL, HONBLE HIGH COURT AND HONBLE SUPREME COURT RESPEC TIVELY. THE MONETARY LIMIT FIXED FOR FILING OF APPEAL BEFORE TH E TRIBUNAL IS RS.10 LAKHS AND IT IS ALSO CLARIFIED THAT THE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WOULD HAVE BEEN CHARGEABLE ON SUCH TOTAL INCOME BEING RED UCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST W HICH, APPEAL IS INTENDED TO BE FILED AND ALSO THAT THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITS ELF IS IN DISPUTE. PARA-10 OF THE INSTRUCTION ALSO CLARIFIES THAT THE INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN THE HIGH COURTS/TRIBUNAL AND HAS DIRECTED THE DE PARTMENT TO EITHER WITHDRAW OR NOT PRESS THE APPEALS BELOW THE SPECIFI ED TAX LIMITS. DULY TAKING NOTE OF THE CBDT CIRCULAR NO.21/2015 DATED 1 0 TH DECEMBER, 2015, WE DISMISS THE APPEAL OF THE REVENUE WITH THE LIBERTY TO THE REVENUE TO SEEK RECALL OF THIS ORDER IF THIS CASE F ALLS WITHIN ANY OF THE EXCEPTIONS TO THE CBDT CIRCULAR MENTIONED THEREIN. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 23 RD MAY, 2018. SD/- SD/- (P. MADHAVI DEVI (S. RIFAUR RAHM AN) JUDICIAL MEMBER AC COUNTANT MEMBER HYDERABAD, DATED: 23 RD MAY, 2018 KV 3 ITA NO. 376 /HYD/2018 SASHI PARVATHA REDDI, HYD. COPY TO:- 1) DCIT, 2, INTERNATIONAL TAXATION, ROOM NO. 506, 5 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2) SRI SASHI PARVATHA REDDI, 372D, ROAD NO. 81, JU BILEE HILLS, HYDERABAD. 3 CIT(A) - 10, HYDERABAD 4) CIT (IT & TP), HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 6) GUARD FILE