ACIT., Allahabad V. M/s Kesarwani & Co., Allahabad

ITA 426/ALLD/2014

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9164 (ITAT-ALLAHABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 26-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRENDRA OJHA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH , ALLAHABAD BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 426 TO 428/ALLD/2014 ASSESSMENT YEAR S : 2007 - 08, 2008 - 09 & 2009 - 10 ASSTT. COMMISSIONER OF INCO ME TAX CENTRAL CIRCLE, ALLAHABAD V. M/S KESARWANI & COMPANY SAHSON, ALLAHABAD T AN /PAN : AADFK6562C (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI VIRENDRA OJHA, CIT (DR) RESPONDENT BY: SHRI PRAVEEN GODBOLE, C.A. DATE OF HEARING: 18 12 201 8 DATE OF PR ONOUNCEMENT: 18 12 201 8 O R D E R PER A. D. JAIN, V.P . : TH ESE APPEALS HAVE BEEN FILED BY THE REVENUE AGAINST THE RESPECTIVE ORDERS OF THE LD. CIT(A), ALLAHABAD, DATED 19/03/2014 FOR THE ASSESSMENT YEARS 2007 - 08 AND 2008 - 09 ; AND ORDER DATED 14/3/2014 FOR THE ASSESSMENT YEAR 2009 - 10 . 2. WE NOTE THAT IN THE SE APPEAL S FILED BY THE REVENUE , THE TAX EFFECT ON THE INCOME IN DISPUTE IS LESS THAN RS.20 LA KH S. 3. THE CENTRAL BOARD OF DIRECT TAXES, VIDE CIRCULAR NO. 3/2018 DATED 11TH JULY, 2018 FILE NO.279 OF MISC.142/2 007 - ITJ (PT), HAS ISSUED THE DIRECTION IN SUPE RSESSION OF THE INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015 IN CONSONANCE WITH THE POWER ENTRUSTED UNDER SECTION 268A OF THE INCOME TAX ACT, 1961 THAT NO APPEAL SHOULD BE FILED BEFORE TH E TRIBUNAL IN CASE THE TAX EFFECT DOES NOT EXCEED RS.20 LA KHS . THE 'TAX EFFECT' IN THIS REGARD MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE, HAD ITA NO.426 TO 428/ALLD/2014 PAGE 2 OF 3 SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. THIS CIRCULAR FURTHER STATES THAT TAX WILL NOT INCLUDE ANY INTEREST THEREON, UNLESS THE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN PARAGRAPH 13, WHICH IS REPRODUCED AS UNDER, IT HAS BEEN MENT IONED IN THE CIRCULAR, THAT THIS INSTRUCTION WILL APPLY EVEN TO PENDING APPEALS: '13. THIS INSTRUCTION WILL APPLY TO SLPS/ APPEALS/CROSS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS /APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. ' 4. THE TAX EFFECT IN EACH OF THE S E APPEAL S DOES NOT EXCEED RS.20 LA KHS . IN VIEW OF THIS FACT, AS PER THE CBDT CIRCULAR NO. 3/ 2018 DATED 11 TH JULY, 2018 FILE NO.279 OF MISC.142/2007 - ITJ (PT), THE REVENUE IS NOT SUPPOSED TO PRESS TH E S E APPEAL S . WE, THEREFORE, DISMISS THE APPEAL S FILED BY THE R EVENUE IN LIMINE, WITHOUT GOING INTO THE MERITS OF THE CASE, AS IN OUR OPINION, THE CIRCUL AR ISSUED BY THE CBDT IS BINDING ON THE D EPARTMENT AL AUTHORITIES IN VIEW OF THE PROVISIONS OF SECTION 268A(1) OF THE INCOME TAX ACT , 1961 . THE SAID VIEW HAS BEEN TAKEN BY THE HONBL E SUPREME COURT IN THE CASE OF NAVN I T LAL JH AVERI VS. K. K. SEN , 56 ITR 198 (SC). WE, ACCORDINGLY, DISMISS THE APPEAL S FILED BY THE REVENUE. 5. IN THE RESULT, ALL THE THREE APPEAL S FILED BY THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 /12 /2018. SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER V ICE PRESIDENT DATED: 18 TH DECEMBER, 201 8 JJ: ITA NO.426 TO 428/ALLD/2014 PAGE 3 OF 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR