A.C.I.T Cir - 30,kolkata, Kolkata V. M/s Bells Advertising Syndicates, Kolkata

ITA 412/KOL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5124 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 28-02-2013
• Court: TRIBUNAL
• Department Lawyers: NONGOTHUN G JUNGIO JCITLD
• Keywords: Audit objection; Tax effect
• Section: 143(3)

Judgement Text

ITA NO. 412/KOL/2013-C-AM M/S. ADVERTISING SYNDICATES T.E 1 IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, K OLKATA BEFORE : SHRI M. BALAGANESH, ACCOUNTANT MEMBE R, AND SHRI S.S VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO. 412/KOL/2013 A.Y 2008-09 ACIT, CIR-30, KOLKATA VS. M/S. BELLS ADVERTISING SYNDICATES PAN: AAGFB 9482R (APPELLANT) (RESPONDENT) FOR THE APPELLANT/DEPARTMENT: SHRI NONGOTHUN G JUNGIO, JCIT/LD. SR.DR FOR THE RESPONDENT/ASSESSEE: NONE APPEARED DATE OF HEARING: 06-01-2016 DATE OF PRONOUNCEMENT: 06-01-2 016 ORDER SHRI M.BALAGANESH, AM : THIS APPEAL OF THE REVENUE ARISES OUT OF THE ORDER OF THE LEARNED CIT(A)-XIV, KOLKATA IN APPEAL NO. 277/CIT(A)-XIV/10-11 DATED 13 -12-2012 AGAINST THE ORDER OF ASSESSMENT FRAMED U/S 143(3) OF THE INCOME TAX ACT , 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR THE ASST YEAR 2008-09. 2. AT THE OUTSET, IT IS SEEN THAT THE TAX EFFECT O N THE DISPUTED ADDITIONS BEFORE US IS LESS THAN RS. 10 LACS. 3. WE HAVE HEARD THE LD.DR. IN THIS APPEAL THE TO TAL AMOUNT INVOLVED AND TAX EFFECT ARE RS.22,07,480/- AND RS.7,50,322/- RESPECTIVELY. IT IS SEEN FROM THE PERUSAL OF THE RECORDS THAT THE TOTAL TAX EFFECT ON THE ADDITIONS DISPUTED BEFORE US IS ADMITTEDLY BELOW THE TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE CIRCU LAR NO. 21 / 2015 DATED 10.12.2015 ITA NO. 412/KOL/2013-C-AM M/S. ADVERTISING SYNDICATES T.E 3 RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEED S THE MONETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER / JUDGEMENT INVOLVE S MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 8. ADVERSE JUDGEMENTS RELATING TO THE FOLLOWING ISS UES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT : (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE ARE UNDER CHALLENGE, OR (B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR C IRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS / BANK ACCOUNTS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PEN DING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN / NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3.1 WE FIND THAT INTENTION BEHIND THE CIRCULAR NO.2 1/2015 DATED 10-12-2015 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- BY PASSAGE OF TIME, THE MONEY VALUE HAS GONE DOWN, THE COST OF LITIGATION EXPENSES HAS GONE UP, NUMBER OF ASSESSES ON THE FI LES OF THE DEPARTMENT HAVE BEEN INCREASED AND CONSEQUENTLY, THE BURDEN ON THE DEPARTMENT IS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR COURTS ARE CHOKED WITH HUGE PENDENCY OF CASES. IN THIS VIEW OF THE MATTER, THE CBDT HAS RIGHTLY TAKEN A DECISION TO REVISE THE MONETAR Y LIMITS IN TUNE WITH THE PRESENT VALUE OF MONEY AND WITH A VIEW TO REDUCE TH E LITIGATION AND OFFERING RELIEF TO SMALL TAX PAYERS. THIS IS ALSO IN VIEW O F THE FACT THAT TIME AND ENERGY OF THE DEPARTMENT COULD BE USED MORE PRODUC TIVELY AND EFFICIENTLY TO ITA NO. 412/KOL/2013-C-AM M/S. ADVERTISING SYNDICATES T.E 5 1. THE APPELLANT: ASSTT. COMMISSIONER OF INCOME TA X, CIR-30 2 GARIAHAT ROAD (S) KOL- 68. 2 THE RESPONDENT-M/S. BELLS ADVERTISING SYNDICATES 50A BIBHUTIBHUSAN BANDOPADHYAY SARANI, BALLYGUNGE, KOL - 19. 3 /THE CIT, 4.THE CIT(A ) 5. DR, KOLKATA BENCH 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT REGISTRAR **PRADIP/SPS COPY OF THE ORDER FORWARDED TO: