DCIT, Central Circle-3(1), Hyderabad, Hyderabad V. Highgrace Investments Pvt Ltd., Hyderabad, Hyderabad

ITA 669/HYD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6122 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-01-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 19-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.669/HYD/2015 ASSESSMENT YEAR 2003-2004 THE DCIT, CENTRAL CIRCLE 3(1), HYDERABAD. VS., M/S. H IGHGRACE INVESTMENTS P. LTD., HYDERABAD. PAN AAACH5018G (APPELLANT) (RESPONDENT) FOR REVENUE : MR. M. SITARAM FOR ASSESSEE : MR. K.C. DEVDAS DATE OF HEARING : 04.01.2016 DATE OF PRONOUNCEMENT : 04.01.2016 ORDER PER B. RAMAKOTAIAH, A.M. THIS IS REVENUES APPEAL FOR THE A.Y. 2003-04. IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORD ER OF THE LD. CIT(A)-12, HYDERABAD DATED 27.02.2015. 2. AT THE TIME OF HEARING, LD. COUNSEL FOR ASSESSEE, MR. K.C.DEVDAS, SUBMITTED THAT THE TAX EF FECT IN THIS APPEAL IS LESS THAN RS. 10 LAKHS AND THEREFORE , REVENUES APPEAL IS LIABLE TO BE DISMISSED IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WHICH FACT IS CONFIRMED BY THE LD. D.R. 2 ITA.NO.669/HYD/2015 M/S. HIGHGRACE INVESTMENTS P. LTD., HYDERABAD. 3. ON PERUSAL OF THE CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE FIND THAT THE CBDT HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFO RE THE TRIBUNAL, HONBLE HIGH COURT AND HONBLE SUPREME CO URT RESPECTIVELY. THE MONETARY LIMIT FIXED FOR FILING O F APPEAL BEFORE THE TRIBUNAL IS RS.10 LAKHS AND IT IS ALSO C LARIFIED THAT THE TAX EFFECT MEANS THE DIFFERENCE BETWEEN TH E TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE ON SUCH TOTAL INCOME BEING REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAIN ST WHICH, APPEAL IS INTENDED TO BE FILED AND ALSO THAT THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. PAR A-10 OF THE INSTRUCTION ALSO CLARIFIES THAT THE INSTRUCTION WIL L APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN THE HIGH COURTS/TRIBUNAL AND HAS DIRE CTED THE DEPARTMENT TO EITHER WITHDRAW OR NOT PRESS THE APPEALS BELOW THE SPECIFIED TAX LIMITS. DULY TAKING NOTE OF THE CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE DISMISS THE APPEAL OF THE REVENUE WITH LIB ERTY TO THE REVENUE TO SEEK RECALL OF THIS ORDER IF THIS AP PEAL FALLS WITHIN ANY OF THE EXCEPTIONS PROVIDED IN THE CIRCUL AR. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. 3 ITA.NO.669/HYD/2015 M/S. HIGHGRACE INVESTMENTS P. LTD., HYDERABAD. PRONOUNCED IN THE OPEN COURT ON 04.01.2016. SD/- SD/- (SMT. P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACOUNTANT MEMBER HYDERABAD, DATED 04 TH JANUARY, 2016 VBP/- COPY TO 1. THE DCIT, CENTRAL CIRCLE - 3(1), 3 RD FLOOR, POSNETT BHAVAN, TILAK ROAD, HYDERABAD. 2. M/S. HIGHGRACE INVESTMENTS P. LTD., R.K. RESIDENCY, H.NO.8-3-229/D/32, 1 ST FLOOR, VENKATAGIRI, YOUSUFGUDA, HYDERABAD. 3. CIT(A) - 12, ROOM NO.3A - 5, AAYAKAR BHAVAN, ANNEXE BUILDING, BASHEERBAGH, HYDERABAD 500 004. 4. CIT (CENTRAL), HYDERABAD. 5. D.R. I.T.A.T. A BENCH, HYDERABAD. 6. GUARD FILE