Income Tax Officer-5(1), Kanpur V. Kanhaiya Lal Verma, Kanpur

ITA 522/LKW/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1771 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 11-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PINKI MAHAWAR
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH SMC , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 522/LKW/2017 ASSESSMENT YEAR: 2008 - 09 INCOME TAX OFFICER 5(1) KANPUR V. SHRI KANH AIYA LAL VERMA 117/Q/716, SHARDA NAGAR KANPUR T AN /PAN : ABBPV4602R (APP ELL ANT) (RESPONDENT) APPELLANT BY: SMT. PINKI MAHAWAR, D.R. RESPONDENT BY: NONE DATE OF HEARING: 23 08 201 8 DATE OF PRONOUNCEMENT: 31 08 201 8 O R D E R PER P ARTHA SARATHI CHAU DHURY, J.M : THIS APPEAL PREFERRED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(A) - II, KANPUR DATED 23/5/2017 . 2. DURING THE COURSE OF HEARING, NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. HOWEVER, A PERUSAL OF RECORD SHOWS THAT THE TAX EFFECT INV OLVED IN THIS APPEAL IS LESS THAN RS.20,00,000/ - , THEREFORE, IN VIEW OF THE CIRCULAR NO. 3/2018 ISSUED BY THE CBDT AND THE PROVISIONS CONTAINED IN SECTION 268A OF THE INCOME TAX ACT, 1961 (HEREINAFTER TO BE REFERRED AS THE ACT), THE DEPARTMENT IS BOUND TO WITHDRAW THE APPEAL. 3. ON THE OTHER HAND, THE LD. D.R., ALTHOUGH SUPPORTED THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THIS FACT THAT TAX EFFECT IN THIS APPEAL IS LESS THAN RS.20,00,000/ - . ITA NO.522/LKW/2017 PAGE 2 OF 3 4. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. D.R. AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT SECTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RETROSPECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE ACT PROVIDES THAT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO TH E OTHER INCOME - TAX AUTHORITIES FIXING MONETARY LIMITS FOR NOT FILING THE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS, SAID INSTRUCTIONS/DIRECTIONS ARE BINDING ON THE INCOME TAX AUTHORITIES. 5. IT IS NOTICED THAT THE CBDT HAS ISSUED CIRCULAR NO. 3 O F 2018 DATED 11.07.2018, VIDE WHICH IT HAS REVISED THE MONETARY LIMIT TO RS.20,00,000/ - FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL . 6. FROM CLAUSE 12 & 13 OF THE SAID CIRCULAR, IT IS CLEAR THAT THESE INSTRUCTIONS ARE APPLICABLE TO THE PENDING APPEALS AL SO AND AS PER CLAUSE 13, THERE IS CLEAR CUT INSTRUCTION TO THE D EPARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE THE ITAT WHEREIN TAX EFFECT IS LESS THAN RS.20,00,000/ - . THESE INSTRUCTIONS ARE OPERATIVE RETROSPECTIVELY TO THE PENDING APPEALS. 7. KEEPING IN VIEW THE CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE WITHDRAWN THE INSTANT APPEAL FILED BEFORE THE TRIBUNAL. 8. I N THE RESU LT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 / 0 8 / 201 8 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 31 ST AUGUST , 201 8 JJ: 2308 ITA NO.522/LKW/2017 PAGE 3 OF 3 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPO NDENT 3 . CIT(A) 4 . CIT 5 . DR