THE DCIT, CIRCLE - 2(1), Vijayawada V. Smt. Narra Siva Subba Lakshmi, Vijayawada

ITA 43/VIZ/2014

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5282 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 5 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 20-06-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 06-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: P V SUBBA RAO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 4 3 & 44 / VIZ /201 4 (ASST. YEAR : 20 08 - 0 9 & 2009 - 10 ) DCIT, CIRCLE - 2(1), VIJAYAWADA. V S . SMT. NARRA SIVA SUBBA LAKSHMI, D.NO. 59A - 10 - 9, K.P. NAGAR, NEAR BENZ CIRCLE SUPER BAZAR, VIJAYAWADA. PAN NO. ABRPN 9543 K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.V. SUBBA RAO C A. DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 19 / 0 8 /201 9 . DATE OF PRONOUNCEMENT : 23 / 0 8 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THESE APPEAL S BY THE R EVENUE ARE DIRECTED AGAINST THE SEPARATE ORDER S OF COMMISSIONER OF INCOME TAX (APPEALS) , VIJAYAWADA , BOTH DATED 2 8 / 11 /201 3 FOR THE ASSESSMENT YEARS 200 8 - 09 & 2009 - 10 . SINCE FACTS AND ISSUES ARE COMMON, CLUBBED AND HEARD TOGETHER AND DISPOSED OF BY WAY OF THIS CONSOLIDATED ORDER . 2. WHEN THESE APPEAL S ARE TAKEN UP FOR HEARING, LD.AR BY PLACING RELIANCE ON THE DECISION OF THE ITAT, AHMEDABAD BENCHES 2 ITA NO. 43 & 44/VIZ/2014 ( SMT. NARRA SIVA SUBBA LAKSHMI ) IN THE CASE OF ITO VS. DINESH MADHAVLAL PATEL IN ITA NO.1398/AHD/2004 , DATED 14/08/2019 HAS SUBMITTED THAT THE TRIBUNAL BY FOLLOWING THE CBDT CIRCULAR NO.1 7 /201 9 , DATED 08 .0 8 .201 9 DISMISSED THE REVENUES APPEAL AND THERE F ORE SUBMITTED THAT SAME MAY BE FOLLOWED. LD.DR RELIED ON THE GROUNDS OF APPEAL. 3 . WE FIND THAT T HE COORDINATE BENCH OF THE AHMEDABAD TRIBUNAL IN THE CASE OF DINESH MADHAVLAL PATEL (SUPRA) HAS CONSIDERED THE CBDT CIRCULAR NO.1 7 /201 9 , DATED 08 /0 8 /201 9 AND DISMISSED THE REVENUES APPEAL. FOR THE SAKE OF CONVENIENCE, THE RELEVANT PORTION OF THE ORDER IS EXTRACTED AS UNDER : - 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVING PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HESITATION IN HOLDING THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS O F NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQ UENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION , IT HAS BEEN DE CIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME - TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ A S FOLLOWS: S.NO. APPEALS/SLPS IN INCOME - TAX MATTERS MONETARY LIMIT (RS.) 1 . BEFORE APPELLATE TRIBUNAL 50,00,000 2 . BEFORE HIGH COURT 1,00,00,000 3 . BEFORE SUPREME COURT 2,00,00,000 3 ITA NO. 43 & 44/VIZ/2014 ( SMT. NARRA SIVA SUBBA LAKSHMI ) 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS - A - VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIR CULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES A RISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO ITO VS DINESH MADHAVLAL PATEL (ITA NO. 1398/ AHD/2004) AND 627 OTHER APPEALS AND COS PAGE 5 OF 7 APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN P ARA 3. IN CAS E WHERE A COMPOSITE ORDER/ JUDG MENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OBJECTIONS/ REFERENCES TO BE FILED HENC EFORTH 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 PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. 8. LEARNED COMMISSIONER (DR) THEN SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE COVERED BY THE EXCEPTIO NS, AND (II) 4 ITA NO. 43 & 44/VIZ/2014 ( SMT. NARRA SIVA SUBBA LAKSHMI ) WHICH ARE INADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBE RTY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS - OR FOR ANY OTHER REASON, AND WE WILL TAKE APPR OPRIATE REMEDIAL STEPS IN THIS REGARD. 9. IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS STAND DISMISSED AS WITHDRAWN. AS THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON - MAINTAINABLE AND AS ALL THE RELATED CROSS - OBJECTIONS OF THE ASSESSEE ARI SE ONLY AS A RESULT OF THOSE APPEALS AND MERELY SUPPORT THE ORDER OF THE CIT(A), THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. ORDERED, ACCORDINGLY. 10. AS WE PART WITH THE MATTER, WE MUST PLACE ON RECORD OUR DEEP APPRECIATION TO OUR OWN TEAM WHICH HAS PAINSTAKINGLY IDENTIFIED ALL THESE LOW TAX EFFECT APPEALS IN THE LONG WEEKEND AND LESS THAN TWO WORKING DAYS, TO THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX GUJARAT, AS ALSO THE LEARNED DEPARTMENTAL REPRESENTATIVES , FOR HIS IMMENSE HELP, COOPERATION AND ACTIVE INVOLVEMENT IN SPEEDILY DISPOSING OF THESE APPEALS, AND, OF COURSE, TO THE ITAT BAR ASSOCIATION AHMEDABAD FOR THEIR WHOLE HEARTED COOPERATION IN THIS SPECIAL DRIVE. THE CIRCULAR WAS ISSUED ON THURSDAY THE 8TH AUGUST 2019, AND WITHIN TWO WORKING DAYS AND THE LONG WEEKEND, TODAY ON 14TH AUGUST 2019, ALL THE APPEALS STAND DISPOSED OF. ITS ONLY A TEAM EFFORT AND WHOLE HEARTED COOPERATION OF ALL THE STAKEHOLDERS THAT CAN ENABLE US TO SO SPEEDILY IMPLEMENT TAXPAYER FRIENDLY INITIATIVES OF THE GOVERNMENT OF INDIA. THE TAXPAYER RELIEF INVOLVED IN THESE APPEALS, INCLUDING INTEREST AND THE OTHER COROLLARIES, IS ESTIMATED TO BE WELL OVER RS 350 CRORES. THE LEAD CASE BEFORE US IS AN APPEAL FILED OVER FIFTEEN YEARS AGO BY T HE INCOME TAX OFFICER AND IT DEALS WITH AN ASSESSMENT YEAR WHICH PERTAINS TO THE PERIOD OVER TWENTY YEARS AGO. YET, THE MATTER HAD NOT REACHED THE FINALITY AND THE REVENUES CHALLENGE TO THE RELIEF GRANTED BY THE COMMISSIONER (APPEALS) HAD REMAINED UNDECID ED. THAT IS NOTHING BUT PROLONGED AGONY OF UNCERTAINTY TO THE TAXPAYERS. IT IS INDEED AN APPRECIABLE GOODWILL GESTURE BY THE GOVERNMENT, FOR SO MANY TAXPAYERS, ON THE EVE OF THIS INDEPENDENCE DAY AND OFFERING THEM FREEDOM FROM THE PROLONGED MENTAL AGONY AN D UNCERTAINTY OF LITIGATION. 4 . RESPECTFULLY FOLLOWING THE DECISION OF THE ITAT, AHMEDABAD BENCHES IN THE ABOVE REFERRED TO CASE, WE FIND THAT TH E S E APPEAL S 5 ITA NO. 43 & 44/VIZ/2014 ( SMT. NARRA SIVA SUBBA LAKSHMI ) FILED BY THE REVENUE ARE NOT MAINTAINABLE AND DISMISSED ACCORDINGLY . 5 . IN THE RESULT, APPEAL S FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 23 RD DAY OF AUGUST , 201 9 . SD/ - SD/ - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23 RD AUGUST , 201 9 . VR/ - COPY TO: 1. THE ASSESSEE SMT. NARRA SIVA SUBBA LAKSHMI, D.NO. 59A - 10 - 9, K.P. NAGAR, NEAR BENZ CIRCLE SUPER BAZAR, VIJAYAWADA. 2. THE REVENUE DCIT, CIRCLE - 2(1), VIJAYAWADA. 3. THE CIT, VIJAYAWADA. 4. THE CIT(A) , VIJAYAWADA. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.