Income Tax Officer,Ward-Narshingpur, Narshingpur V. Hiralal Chunnilal & Sons, Narshingpur

ITA 49/JAB/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9997 (ITAT-JABALPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 17-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P D CHOUGALE
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH , JABALPUR BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 49/JAB/2017 ASSESSMENT YEAR: 2011 - 12 INCOME TAX OFFICER WARD, NARSINGHPUR V. M/S HIRALAL CHUNNIL AL & SONS RAM NIWAS MAHAJANI WARD, NARSINGHPUR T AN /PAN : AACFH5629N (APP ELL ANT) (RESPONDENT) DEPARTMENT BY: SHRI P. D. CHOUGALE, D.R. ASSESSEE BY: SHRI RAHUL BARDIA, C.A. DATE OF HEARING: 01 04 201 9 DATE OF PRONOUNCEMENT: 02 04 201 9 O R D E R PER A. D. JAIN, V.P . : THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) - 1, JABALPUR, DATED 29/8/2017, FOR THE ASSESSMENT YEAR 2011 - 12. 2. AT THE OUTSET, THE LD. A.R. OF THE ASSESSEE SUBMITTED THAT IN THE APPEAL 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.142/2007 - ITJ (PT), HAS ISSUED THE DIRECTION IN SUPE RSESSION OF THE INSTRUCTION NO. 21/20 15 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 I TA NO.49/JAB/2017 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 STA TES 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 MENTIONED 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 LIMI TS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. ' 4. THE TAX EFFECT IN THIS APPEAL 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 THIS APPEAL. WE, THEREFORE, DISMISS THE APPEAL FILED BY THE R EVENUE IN LIMINE, WITHOUT GOING INTO THE MERITS OF THE CASE, AS IN OUR OPINION, THE CIRCULAR ISSUED BY THE CBDT IS BINDING ON THE D EPARTMENT 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 FILED BY THE REVENUE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVE NUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 / 0 4 /201 9 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 02 /0 4 / 201 9 JJ: I TA NO.49/JAB/2017 PAGE 3 OF 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR