DCIT, Circle - 10(1), Kolkata , Kolkata V. M/s. Gobind Sugar Mills Ltd., , Kolkata

ITA 56/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2465 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-09-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 10-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C J SINGH
• Keywords: Tax effect
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH , KOLKATA [BEFORE HONBLE SHRI S.S. GODARA, JM & SHRI ARJUN LAL SAINI, AM ] I.T.A NO. 56 / KOL/ 201 8 A.Y 20 13 - 14 D.C.I.T, CIRCLE - IMPHAL - VS - M/S. GOBIND SUGAR MILLS LTD. CIRCLE - 10(1), KOLKATA PAN: AABCG 0947N (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI C.J. SINGH, JCIT, LD. SR. DR FOR THE RESPONDENT : SHRI A NIL KOCHAR, ADVOCATE DATE OF HEARING : 02.09 .2019 DATE OF PRONOUNCEMENT : 02.09. 201 9 ORDER SHRI ARJUN LAL SAINI, AM 1. TH IS APPEAL BY THE REVENUE ARISE S OUT OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS), 4, KOLKATA AGAINST THE ORDER PASSED BY THE ASSESSING OFFICER, [ IN SHORT THE LD AO] OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. RECENTLY THE CBDT HAS ISSUED CIRCULAR NO. 17/20 19 DATED 08.08.2019, WHEREBY THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN INCREASED AS MEASURE FOR REDUCING LITIGATION. THE REVISED MONETARY LIMI TS LAID DOWN IN PARA - 2 OF THIS CIRCULAR ARE AS FOLLOWS: ( 1 ) . BEFORE APPELLATE TRIBUNAL , RS. 50,00,000/ - ( 2 ) . BEFORE HIGH COURT , RS.1,00,00,000/ - ( 3 ) . BEFORE SUPREME COURT , RS. 2,00,00,000/ - 3. IN THE SE PRESENT APPEALS OF REV ENUE , THE DISPUTED ADDITION IS BELOW OF RS. 50,00,000 / - THAT IS, THE TAX EFFECT IN TH ESE APPEAL S BY THE REVENUE IS LESS THAN RS. 5 0,00,000/ - . IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON 2 T.E - ITA NO. 56/KOL/2018 2 THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION LTD. REPORTED IN 267 ITR 272 WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISIONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID DOWN THAT WHEN A C IRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUND BY IT AND CANNOT BE ALLOWED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY TO THE TERMS OF THE STATUTE. THE APPEAL S UNDER CONSIDERATION HA VE CERTAINLY BEEN FILED CONTRARY TO T HE CIRCULAR ISSUED BY THE CBDT , NO. 17/2019 DATED 08.08.2019 . 4. IN THE EVENT, THE REVENUE FINDS AT A LATER POINT OF TIME THAT THE TAX EFFECT IN THE SE APPEAL S IS MORE THAN RS. 5 0 LAKHS OR DESPITE LOW TAX EFFECT THE APPEAL OF THE REVENUE IS MAINTAINABLE, TH E REVENUE IS AT LIBERTY TO MOVE THIS TRIBUNAL FOR RECALLING OF THIS ORDER. 5 . IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL FILED BY THE DEPARTMENT, AGAINST THE IMPUGNED ORDER S OF THE LD. CIT(A), IS CONTRARY TO THE POLICY DECISION OF THE DEPARTMENT AND AS SUCH THE APPEAL S FILED BY THE DEPARTMENT ARE DISMISSED IN LIMINE . 6 . IN THE RESULT, THE APPEAL BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 02.09 . 2.019 SD/ - SD/ - [S.S. GODARA] [ ARJUN LAL SAINI ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 02.09.2019 *PP/SPS COPY OF THE ORDER FORWARDED TO : 1) APPELLANT/REVENUE : DCIT,CIR - 10(1),P - 7 CHOWRINGHEE SQ.,KOLKATA - 69. 2) RESPONDENT/ASSESSEE : M/S. GOBIND SUGAR MILLS 9/1 R.N. MUKHERJEE RD., KOLKATA - 01. 3) CIT(A) 4) CIT, 5) DR,ITAT, KOLKATA TRUE COPY/ ORDER/ ASSTT. REGISTRAR ITAT, KOLKATA