ACIT, Pondicherry V. M/s. Premier Distilleries Pvt. Ltd., Pondicherry

ITA 636/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8665 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 13-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , .. , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI DUVVURU R.L.REDDY, JUDICIAL MEMBER SL.NO. ITA NO. AY APPELLANT RESPONDENT 1 633/CHNY/2019 2010-11 THE ACIT, PONDICHERRY CIRCLE, NO.378-386, M.G.ROAD, KANNAIAH BUSINESS CENTRE, PONDICHERRY-605 001. M/S.PREMIER DISTILLERIES PVT. LTD., NO.377, 1 ST FLOOR, ANNA SALAI, PONDICHERRY-605 001. [PAN: AACCP 0181 A] 2 634/CHNY/2019 2011-12 3 635/CHNY/2019 2012-13 4 636/CHNY/2019 2013-14 5 1428/CHNY/2019 2014-15 THE ACIT, CORPORATE CIRCLE-6(2), CHENNAI. M/S.STERIL-GENE LIFE SCIENCES PVT. LTD., NO.15, GOPALAKRISHNAN ROAD, T.NAGAR, CHENNAI-600 017. [PAN: AAKCS 9783 R] 6 1939/CHNY/2019 2012-13 THE ACIT, CORPORATE CIRCLE-6(2), CHENNAI. M/S.SHRIRAM VENTURE LTD., MOOKIMBA COMPLEX, NO.4, LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. [PAN: AAACS 7696 D] 7 2394/CHNY/2018 2009-10 THE ACIT, NON-CORPORATE CIRCLE- 18(1), CHENNAI. MS.SWAPNA DUTT CHALASANI, NO.18/20, LADY MADHAVAN STREET, NUNGAMBAKKAM, MAHALINGAPURAM, CHENNAI-600 034. [PAN: ARTPS 0053 K] 8 2004/CHNY/2019 2008-09 THE DCIT, CORPORATE CIRCLE- 6(2), CHENNAI M/S.SRINIVASA FASHIONS PVT. LTD., 1A, REGENCY APARTMENTS NO.5, 1 ST LANE, NUNGAMBAKKAM HIGH ROAD, CHENNAI- 600 034. [PAN: AAICS 9511 R] 9 1850/CHNY/2019 2014-15 THE ACIT, CIRCLE-1, NAMAKKAL MR.K.M.RAMASAM Y, NO.15, K.KANDAMPALAYAM, KONUR POST, NAMAKKAL- 637 207. [PAN: AGDPR 8355 A] 10 1518/CHNY/2019 2011-12 THE ACIT, NON-CORPORATE CIRCLE- 7(1), CHENNAI-34. MR.DR.K.SENTHIL NATHAN, PLOT NO.1499, 16 TH MAIN ROAD, ANNA TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 2 -: NAGAR, CHENNAI-600 040. [PAN: AADPK 0449 A] 11 3559/CHNY/2018 2009-10 THE ACIT, CENTRAL CIRCLE-2(1), CHENNAI SMT.MEERA ARUN, NO.199, ST. MARYS ROAD, ALWARPET, CHENNAI-600 018. [PAN: AIGMP 6898 J] / APPELLANT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.NO. NAME OF COUNSEL 1-11 MR.SRIDHAR DORA, JCIT '# /RESPONDENT BY : SL.NO. AS MENTIONED IN CAUSE TITLE SL.NO. NAME OF COUNSEL 1-4 MR.S.SRIDHAR, ADV. 5-9 NONE 10 MR.S.SRIDHAR, ADV. FOR MR.R.MUGUNTHAN, CA 11 MR.S.SRIDHAR, ADV. / DATE OF HEARING : 29-08-2019 / DATE OF PRONOUNCEMENT : 09 - 09 - 2019 / O R D E R PER BENCH : THESE 11 APPEALS ARE FILED BY THE REVENUE RELATI NG TO DIFFERENT ASSESSEES, ALL THESE APPEALS CALL INTO QUESTION COR RECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONERS OF IN COME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN A LL THESE APPEALS DOES NOT EXCEED RS.50,00,000/- IN EACH OF THESE APPEALS. 2. ITA NOS.633-636/CHNY/2019 ARE THE APPEALS FILED BY THE REVENUE ARE DELAYED BY 02 DAYS, FOR WHICH, THE REVENUE HA S FILED AFFIDAVIT FOR CONDONATION OF THE DELAY, TO WHICH, THE LD.COUNSEL FOR THE ASSESSEE HAS NOT RAISED ANY SERIOUS OBJECTION. CONSEQUENTLY, TH E DELAY OF 02 DAYS IN TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 3 -: FILING OF THE APPEALS STAND CONDONED AND THE APPEAL S ARE DISPOSED OFF ON MERITS. ITA NO.1939/CHNY2019 IS THE APPEAL FILED B Y THE REVENUE IS DELAYED BY 48 DAYS, FOR WHICH, THE REVENUE HAS FI LED AFFIDAVIT FOR CONDONATION OF THE DELAY. THE LD.DR SUBMITTED THAT THERE WAS REASONABLE CAUSE PREVENTED THE DEPARTMENT IN FILING THE APPEAL WITH THE DELAY OF 48 DAYS AND PLEADED FOR CONDONING THE DELAY. SINCE NO NE APPEARED ON BEHALF OF THE ASSESSEE AND THE REVENUE WAS PREVENTED BY RE ASONABLE CAUSE IN FILING BELATED APPEAL, THE DELAY OF 48 DAYS IN FI LING OF THE APPEAL STANDS CONDONED AND THE APPEAL IS DISPOSED OFF ON MERITS. 3. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC.1 42/2007-ITJ(PT) DATED 8 TH AUGUST, 2019, THE INCOME TAX DEPARTMENT HAS FURTHE R LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECIS IONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST T HE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OV ERALL TAX EFFECT, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE, IS RS.50,00,000/- OR LESS. 4. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE C ONCESSION BY THIS CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN. TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 4 -: 5. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 6. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO .3/2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS.3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT F ROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOM E-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 AS FOLLOWS: SL.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMITS (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. 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 CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARI SE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESS MENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEED S THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN A SSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPEC IFIED IN PARA-3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE 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 ASSE SSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE AS SESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 5 -: 7. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO.3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INT ACT 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 HENCEFORTH 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. 8. THE HONBLE SUPREME COURT IN THE CASE OF THE COMM ISSIONER OF INCOME TAX-5, NEW DELHI VS. KESHAV POWER LTD., IN S LP NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019 (8) TMI 811 (SC) HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.08.2019 HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LE SS THAN RS.2/- CRORES, GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT, WE SEE NO REASON TO IN TERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITION IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. 9. THE LEARNED COMMISSIONER (DR) 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 C OVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CB DT CIRCULAR (SUPRA), EXCEEDS RS.50,00,000/-. NONE OPPOSES THIS PRAYER; W E ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LI BERTY 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 APPROPRIATE REMEDIAL STEPS IN THIS RE GARD. TAX EFFECT (11) CASES < RS.50.00 LAKHS :- 6 -: 10. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF COMMIS SIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE. 11. IN THE RESULT, ALL THE APPEALS FILED BY THE REVEN UE ARE DISMISSED. ORDER PRONOUNCED ON THE 09 TH DAY OF SEPTEMBER, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) - /ACCOUNTANT MEMBER ( . / . . 2 ) ( DUVVURU R.L.REDDY ) 4 - /JUDICIAL MEMBER /CHENNAI, 5 /DATED: 09 TH SEPTEMBER, 2019. TLN '467 87 /COPY TO: 1. /APPELLANT 4. 9 /CIT 2. '# /RESPONDENT 5. 7 '44 /DR 3. 9 ( ) /CIT(A) 6. > /GF