ACIT, Sangrur V. M/s Krishna Krishna Jewellers and Investment (P) Ltd., Sangrur

ITA 698/CHANDI/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7485 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 16-07-2018
• Assessment Year: 2008-2009
• Appeal Filed On: 03-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Question of law; Tax effect

Judgement Text

2 COMMISSIONER OF INCOME TAX (APPEALS), PATIALA [HER EINAFTER REFERRED TO AS CIT(A)]. 2. AT THE OUTSET, THE LD. AR HAS STATED THAT TAX EF FECT INVOLVED IN THE PRESENT CASE IS LESS THAN RS. 20 LACS. THE LD. DR H AS ALSO FAIRLY ADMITTED THAT CBDT CIRCULAR NO. 3/2018 IS APPLICABLE TO THIS APP EAL, HENCE, THIS APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED. 3. IT MAY BE NOTED THAT CBDT VIDE CIRCULAR NO. 3/20 18 DATED 11.07.2018 HAS REVISED THE MONETARY LIMIT UPTO RS.20 LACS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL AND FURTHER VIDE PAR A 13 OF THE SAID CIRCULAR IT HAS BEEN CLARIFIED THAT SAID CIRCULAR IS APPLICABLE RETROSPECTIVELY TO THE PENDING APPEALS ALSO. THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF PRINCIPAL CIT OF INCOME TAX VS. SURINDER KUMAR SINGHAL ITA NO 406- 2016 (O&M) VIDE ORDER DATED 30.1.2017 WHILE FURTHER RELYING UPON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE O F CIT VS. DHANALEKSHMI BANK LTD. (2015) 373 ITR 526 (SC), HAS DISMISSED T HE APPEAL OF THE REVENUE WITHOUT GOING INTO THE MERITS DUE TO LOW TAX EFFECT LEAVING THE QUESTION OF LAW OPEN. IN VIEW OF THE CBDT CIRCULAR NO. 03/2018 (SU PRA) AND IN THE LIGHT OF THE ABOVE REFERRED TO DECISION OF THE HON'BLE JURIS DICTIONAL PUNJAB & HARYANA HIGH COURT (SUPRA), THE PRESENT APPEAL OF THE REVEN UE IS DISMISSED DUE TO LOW TAX EFFECT. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT( A) ON MERITS. THE LEGAL ISSUE RAISED BY THE REVENUE IS BEING LEFT OPEN TO B E ADJUDICATED IN AN APPROPRIATE CASE.