ITO, WD-2(1), KOLKATA, Kolkata V. M/s Raj Parivahan Pvt. Ltd., Kolkata

ITA 527/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92083 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 25-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES FROM
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

I.T.A. NO . 5 2 7 / KOL ./20 1 4 ASSESSMENT YEAR: 200 7 - 200 8 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI MAHAVIR SINGH , JUDICIAL MEMBER I.T.A. NO. 5 2 7 / KOL / 20 1 4 ASSESSMENT YEAR : 200 7 - 20 0 8 INCOME TAX OFFICER,.......... ............ .............. .... ........ . APPELLANT WAR D - 2(1), KOLKATA, AAYAKAR BHAWAN, 7 TH FLOOR, ROOM NO. 21, P - 7, CHOWRINGHEE SQUARE, KOLKATA - 700 069 - VS. - M/S. RAJ PARIVAHAN PVT. LIMITED, ...................... . ...... ..... . RESPONDENT AC/174, CHANDRA VILAS, SALT LAKE CITY, SECTOR - I, KOLKATA - 700 064 [PA N : AABCR 3477 J] APPEARANCES BY: SHRI SUBHENDU DUTTA, JCIT, FOR THE DEPARTMENT SHRI B.L. SWARNAKAR, DIRECTOR OF THE COMPANY, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JU LY 27 , 2 01 5 DATE OF PRONOUNCING THE ORDER : JU LY 30 , 201 5 O R D E R TH IS APPEAL , FILED BY THE REVENUE, ARISES FROM THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - I, KOLKATA IN APPEAL NO. 370 / CIT(A) - I/W - 2(1)/2009 - 10 DATED 27 . 1 1 .20 1 3 FOR THE ASSESSMENT YEAR 200 7 - 0 8 , WHICH WAS PASSED AGAINST THE ORDER OF ASSESSMENT UNDER SECTION 143(3) OF THE ACT BY THE ITO, WARD - 2 ( 1 ), KOLKATA , ON 17 .12.200 9 . 2. SHRI SUBHENDU DUTTA, JCIT, APPEARED ON BEHALF OF THE REVENUE AND SHRI B.L. SWARNAKAR, DIRECTOR OF THE COMPANY, APPEARED ON BEHALF OF THE ASSESSEE. I.T.A. NO . 5 2 7 / KOL ./20 1 4 ASSESSMENT YEAR: 200 7 - 200 8 PAGE 2 OF 4 3 . THE ASSESSMENT WAS COMPLET ED UNDER SECTION 143(3) OF THE ACT ON 17 .12.200 9 BY DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS. 29,400/ - AND RAISING A DEMAND OF RS.13,558/ - . 4 . AT THE OUTSET, LD. D.R. FOR THE REVENUE VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER. 5. O N THE OTHER HAND, LD. COUNSEL FOR THE ASSESSEE STATED THAT THE TAX EFFECT IN THIS APPEAL OF REVENUE IS BELOW THE PRESCRIBED MONETARY LIMIT FOR FILING APPEAL IN INCOME TAX APPELLATE TRIBUNAL. THIS APPEAL RELATES TO ASSESSMENT YEAR 2007 - 08 . LD. COUNSEL FOR T HE ASSESSEE ALSO STATED THAT IN VIEW OF THE INSTRUCTION NO. 5/2014 ISSUED BY THE CBDT ON 10.07.2014, REVISING MONETARY LIMITS FOR FILING OF APPEAL BEFORE ITAT FIXING THE TAX EFFECT LIMIT OF RS. 4 LACS, THE SAME IS NOT MAINTAINABLE AND LIABLE TO BE DISMISSE D IN LIMINE. 6. I HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. I T IS SEEN FROM THE PERUSAL OF THE ASSESSMENT ORDER THAT TOTAL DEMAND RAISED BY THE ASSESSING OFFICER IS RS.13,558/ - , WHICH IS ADMITTEDLY BELOW T HE TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE INSTRUCTION NO. 5/2014 DATED 10.07.2014 FOR PREFERRING APPEALS BEFORE ITAT BY THE REVENUE . 6.1. NOW THE ISSUE , WHICH IS TO BE ADJUDICATED , WHETHER THE SAID INSTRUCTION NO. 5/2014 IS APPLICABLE FOR PENDING APPEAL S OR IS APPLICABLE ONLY FOR APPEALS INSTITUTED ON OR AFTER 10.07.2014. IN THIS REGARD RELIANCE IS PLACED ON THE DECISION OF HON BLE DELHI HIGH COURT IN THE CASE OF CIT VS. - M/S. P. S. JAIN & CO. IN ITA NO.179/1991 DATED 02.08.2010 WHICH HELD AS UNDER: THIS COURT CAN VERY WELL TAKE JUDICIAL NOTICE OF THE FACT THAT BY PASSAGE OF TIME MONEY VALUE HAS GONE DOWN, THE COST OF LITIGATION EXPENSES HAS GONE UP, THE ASSESSEES ON THE FILE OF THE DEPARTMENTS HAVE BEEN INCREASED CONSEQUENTLY, THE BURDEN ON THE DEPAR TMENT HAS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR COURTS ARE CHOCKED WITH HUGE PENDENCY OF CASES. IN THIS VIEW OF THE MATTER, THE BOARD HAS RIGHTLY TAKEN A DECISION NOT TO FILE REFERENCES IF THE TAX EFFECT LESS THAN RS. 2 LAK HS. THE SAME POLICY FOR OLD MATTERS NEEDS TO BE ADOPTED BY THE DEPARTMENT. IN OUR VIEW, THE BOARD S I.T.A. NO . 5 2 7 / KOL ./20 1 4 ASSESSMENT YEAR: 200 7 - 200 8 PAGE 3 OF 4 CIRCULAR DATED MARCH 27, 2000 IS VERY MUCH APPLICABLE EVEN TO THE OLD REFERENCES WHICH ARE STILL UNDECIDED. THE DEPARTMENT IS NOT JUSTIFIED IN PROCEEDING WITH THE OLD REFERENCES WHEREIN THE TAX IMPACT IS MINIMAL. THUS, THERE IS NO JUSTIFICATION TO PROCEEDS WITH DECADES OLD REFERENCES HAVING NEGLIGIBLE TAX EFFECT. 7. IN MY VIEW CBDT S CIRCULAR IS VERY MUCH APPLICABLE IN THIS CASE AND OLD REFERENCES WHICH ARE STILL UNDECIDED. THE DEPARTMENT IS NOT JUSTIFIED IN PROCEEDING WITH THE INCOME - TAX REFERENCES WHEREIN INCOME TAX EFFECT IS MINIMAL. THUS THERE IS NO JUSTIFICATION TO PROCEED WITH DECADE OLD REFERENCE S HAVING NEGLIGIBLE TAX EFFECT. 8. SIMILARLY, HON B LE GUJARAT HIGH COURT IN THE CASE OF CIT V. SURESHCHANDRA DURGAPRASAD KHATOD (HUF) (2012) 253 CTR 492 (GUJ) HAS SPECIFICALLY CONSIDERED INSTRUCTION NO. 3/2011 AND HELD THAT THE SAME WOULD APPLY TO PENDING CASES AS WELL EVEN THOUGH THERE WAS A SPECIFIC COND ITION IN THAT INSTRUCTION ALSO THAT THE SAME WOULD APPLY TO APPEALS FILE D ON OR AFTER FEBRUARY, 2011. 9. ON PERUSAL OF THE INSTRUCTION NO. 5/2014, I ALSO FIND THAT THE PRESENT APPEAL OF THE REVENUE DOES NOT FALL UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID INSTRUCTION. HOWEVER, FROM THE PERUSAL OF THE ASSESSMENT ORDER, IT IS SEEN THAT THE REVENUE S APPEAL DESERVES TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CBDT INSTRUCTIONS NO. 5/2014 DATED 10.07.2014 ON THIS SUBJECT, WHICH IS BINDING ON THE T AX AUTHORITIES. ACCORDINGLY THIS BEING A LOW TAX EFFECT CASE, I DISMISS THE APPEAL OF THE REVENUE IN LIMINE WITHOUT GOING INTO MERITS OF THE CASE. 10 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON JU LY 30 , 201 5 . SD/ - MAHAVIR SINGH ( JUDICIAL MEMBER) KOLKATA, THE 30 TH D AY OF JU LY , 201 5 I.T.A. NO . 5 2 7 / KOL ./20 1 4 ASSESSMENT YEAR: 200 7 - 200 8 PAGE 4 OF 4 COPIES TO : (1) INCOME TAX OFFICER, WARD - 2(1), KOLKATA, AAYAKAR BHAWAN, 7 TH FLOOR, ROOM NO. 21, P - 7, CHOWRINGHEE SQUARE, KOLKATA - 700 069 (2) M/S. RAJ PARIVAHAN PVT. LIMITED, AC/174, CHANDRA VILAS, SALT LAKE CITY, SECTOR - I, KOLKATA - 700 064 (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEPARTMENTAL R EPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA B ENCHES, KOLKATA LAHA/SR. P.S .