DCIT, Circle-2(2), Hyderabad V. M/s Environ Estates Pvt. Ltd., Hyderabad

ITA 781/HYD/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6334 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 29-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: A V RAGHURAM
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC) : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT ITA.NO.781/HYD/2014 ASSESSMENT YEAR 2010-2011 THE DCIT, CIRCLE-2(2) HYDERABAD. VS. M/S. ENVIRON ESTATES P. LTD., HYDERABAD 500 082. PAN AABCE0796K (APPELLANT) (RESPONDENT) FOR REVENUE : MR. K.J. RAO FOR ASSESSEE : MR. A.V. RAGHURAM DATE OF HEARING : 23.06.2016 DATE OF PRONOUNCEMENT : 10.08.2016 ORDER THIS APPEAL IS FILED AT THE INSTANCE OF THE REVENUE A ND IT PERTAINS TO THE A.Y. 2010-2011. DEDUCTION CLAIMED UN DER SECTION 80IB(10) OF THE ACT WAS REJECTED BY THE ASSESSIN G OFFICER WHEREAS IT WAS PARTLY ALLOWED BY THE CIT(A) WHICH HAS GIVEN RISE TO THIS APPEAL. 2. AT THE TIME OF HEARING, LEARNED COUNSEL APPEARING ON BEHALF OF THE ASSESSEE, PLACED BEFORE THE BENCH THE CO NSEQUENTIAL ORDER PASSED BY THE ASSESSING OFFICER AS WELL AS THE CALCULATION SHEET TO SUBMIT THAT THE TAX EFFECT ON THE DISPUTED ISSUE I S LESS THAN RS.10 LAKHS. HE ALSO PLACED BEFORE THE BENCH THE CIRCULAR OF THE CBDT I.E., CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 IN SUPPORT OF HIS CONTENTION THAT THE REVENUE EFFECT MEAN S THE TAX RELIEF THAT WAS GRANTED TO THE ASSESSEE BY VIRTUE OF TH E ORDER OF THE CIT(A) AND IT DOES NOT INCLUDE INTEREST COMPONEN T. 2 ITA.NO.781/HYD/2014 M/S. ENVIRON ESTATES P. LTD., HYDERABAD. 3. THE LD. D.R. HOWEVER, SUBMITTED THAT THE RELIEF GRANTED BY THE CIT(A) IS NOT IN ACCORDANCE WITH LAW AND THE ADMINISTRATIVE COMMISSIONER HAS AUTHORISED THE A.O. TO P REFER AN APPEAL. HOWEVER, HE DID NOT REFUSE THE FACT THAT THE TAX EFFECT IS LESS THAN RS.10 LAKHS AND THE ISSUE IS SQUARELY CO VERED BY THE CIRCULAR ISSUED BY THE CBDT DATED 10.12.2015 WHEREBY THE A.O. SHOULD HAVE VOLUNTARILY COME FORWARD TO WITHDRAW THE APPEAL FILED BY HIM, ABIDING THE TERMS OF THE CIRCULAR. 4. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, THE APPEAL FILED BY THE REVENUE BEING OPPOSED TO THE DIREC TIONS GIVEN BY THE CBDT WHICH INTURN, IS BINDING UPON THE REVENU E UNDER SECTION 119 OF THE I.T. ACT, 1961, THE APPEAL DESERVES TO BE DISMISSED AS WITHDRAWN. I, THEREFORE, DISMISS THE APPE AL FILED BY THE REVENUE. ORDER PRONOUNCED IN THE OPEN COURT ON 10.08.2 016. SD/-/- (D. MANMOHAN) VICE PRESIDENT HYDERABAD DATED 10 TH AUGUST, 2016 VBP/- COPY TO 1. THE DCIT, CIRCLE-2(2), 8 TH FLOOR, B BLOCK, ROOM NO.826, I.T. TOWERS, A.C. GUARDS, HYDERABAD 500 004. 2. M/S. ENVIRON ESTATES P. LTD., 6-3-668/15/4, PUNJAG UTTA, HYDERABAD 500 082. 3. CIT(A)-III, HYDERABAD. 4. CIT-II, HYDERABAD. 5. D.R. ITAT B (SMC) BENCH, HYDERABAD. 6. GUARD FILE