Income-tax Officer, Pune V. Pundalik Baburao Murkute, Pune

ITA 770/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1485 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-08-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 31-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHABANA PARVEEN
• Assessee Lawyers: CHANDRASEKHAR L S
• Keywords: Tax effect
• Section: 54B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 770 /PUN/201 7 / ASSESSMENT YEAR : 20 09 - 10 THE INCOME TAX OFFICER, WARD 2(2), PUNE ....... / APPELLANT / V/S. SHRI PUNDLIK BABURAO MURKUTE, HOUSE NO. 43, BANERGAON, NEAR MARUTI TEMPLE, BANER, PUNE 411045 PAN : AVZPM7775N / RESPONDENT . / ITA NO .1856/PUN/2017 / ASSESSMENT YEAR : 2009 - 10 SHRI PUNDLIK BABURAO MURKUTE, HOUSE NO. 43, BANERGAON, NEAR MARUTI TEMPLE, BANER, PUNE 411045 PAN : AVZPM7775N ....... / APPELLANT / V/S. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 4, PUNE / RESPON DENT ASSESSEE BY : SHRI CHANDRASEKHAR L.S. REVENUE BY : MS. SHABANA PARVEEN / DATE OF HEARING : 27 - 08 - 2019 / DATE OF PRONOUNCEMENT : 2 7 - 0 8 - 2019 2 ITA NO S.770 & 1856/PUN/2017, A.Y. 2009 - 10 / ORDER PER VIKAS AWASTHY, JM : THE SE CROSS APPEALS BY THE ASSESSEE AND THE REVENUE ARE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 3, PUNE DATED 21 - 11 - 2016 FOR THE ASSESSMENT YEAR 2009 - 10. 2. SHRI CHANDRASEKHAR L.S. APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO. 17/2019, DATED 08 - 08 - 2019. THE LD. AR OF THE ASSESSEE FURNISHED CALCULATION OF TAX EFFECT INVOLVED IN THE APPEAL AS RS. 33,78,513/ - , INCLUDING S URCHARGE AND EDUCATION CESS. THUS, THE TAX EFFECT ON THE ADDITION IS LESS THAN RS.50 LAKHS. 3. THE LD. AR FURTHER SUBMITTED THAT THE ASSESSEE DOES NOT WISH TO PURSUE THE APPEAL AND HENCE, MAY BE PERMITTED TO WITHDRAW THE SAME. 4. MS. SHABANA PARVEEN REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS. 50 LAKHS. THE LD. DR FURTHER SUBMITTED THAT THE DEPARTMENT HAS NO OBJECTI ON IF THE ASSESSEE WISHES TO WITHDRAW HIS APPEAL. 5 . BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN ALLOWING THE BENEFIT OF DEDUCTION U/S. 54B OF THE ACT TO THE ASSESSEE. UNDISPUTEDLY, THE TAX EFFE CT INVOLVED 3 ITA NO S.770 & 1856/PUN/2017, A.Y. 2009 - 10 IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO. 17/2019, DATED 08 - 08 - 2019 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08 - 08 - 2019 (SUPRA) HAS AMENDED PARA 3 OF CI RCULAR NO. 3 OF 2018 DATED 11 - 07 - 2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA) THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 6 . BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIA L TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AMENDMENT DATED 20 - 08 - 2018. 7. THE ASSESSEE FURNISHED A NOTE GIVING CALCULATION S OF TAX EFFECT INVOLVED IN THE APPEAL BY THE REVENU E . IN THE SAME NOTE, IT IS ALSO MENTIONED THAT THE ASSESSEE WISHES TO WITHDRAW THE APPEAL. THE RELEVANT EXTRACT OF THE SAME IS REPRODUCED AS UNDER : APPEAL NO. 1856/PN/2017 THIS IS AN APPEAL PREFERRED BY THE APPELLANT ASSESSEE FOR THE SAME ASSESSMENT YEAR AND THE APPELLANT ASSESSEE WOULD LIKE NOT TO PRESS THE GROUNDS OF APPEAL RAISED AND WOULD LIKE TO WITHDRAW THE APPEAL. 8 . THUS, IN VIEW OF THE STATEMENT MADE BY LD. AR, THE APPEAL OF ASSESSEE IS DISMISSED AS WITHDRAWN. 4 ITA NO S.770 & 1856/PUN/2017, A.Y. 2009 - 10 9. IN THE RESULT, THE APPE AL OF ASSESSEE AND REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 2 7 TH DAY OF AUGUST, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 2 7 TH AUGUST, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A PPEALS ) - 3 , PUNE. 4. THE PR. COMMISSIONER OF INCOME TAX - 2 , PUNE. 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE