DCIT Corporate Circle I(1), CHENNAI V. A V A Cholayil Healthcare Pvt. Ltd., CHENNAI

ITA 784/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2693 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-08-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 22-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AR V SREENIVASANJCITD R
• Assessee Lawyers: ARUN KURIAN JOSEPH
• Keywords: Tax effect
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & S HRI S.JAYARAMAN , ACCOUNTANT MEMBER ./ I.T.A.NO.784/CHNY/2019 / ASSESSMENT YEAR : 2014-15 DEPUTY COMMISSIONER OF INCOME TAX, CORPORTE CIRCLE 1(1), CHENNAI. VS. M/S.AVA C HOLAYIL HEALTHCARE PVT LTD., 1583,J BLOCK,6 TH AVENUE, ANNA NAGAR,15 TH MAIN ROAD, CHENNAI 600 102. [PAN AAICA 2178 A ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.AR.V.SREENIVASAN,JCIT,D.R !' /RESPONDENT BY : MR.ARUN KURIAN JOSEPH, ADVOCATE & / DATE OF HEARING : 28 - 08 - 201 9 & / DATE OF PRONOUNCEMENT : 28 - 08 - 201 9 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-4,CHENNAI IN APPEAL NO.452/16-17/C.I.T(A)-4 DATED 28.12.2018 FOR THE AS SESSMENT YEAR 2014-15. ITA NO.784/CHNY/2019 :- 2 -: 2. MR.AR.V.SREENIVASAN REPRESENTED ON BEHALF OF THE REVENUE AND MR.ARUN KURIAN JOSEPH REPRESENTED ON BEHALF OF THE ASSESSEE. 3. THE LEARNED COUNSEL FOR THE REVENUE AND THE ASS ESSEE FAIRLY CONCEDED BEFORE US THAT THE TAX EFFECT INVOLVED IN THIS APPEAL DOES NOT EXCEED RS.50 /- LAKHS. 4. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC. 142/2007- ITJ(PT) DATED 8TH AUGUST, 2019, THE INCOME TAX DEP ARTMENT HAS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEA LS AGAINST THE DECISIONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIM ITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS , THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST THE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OVERALL TAX EFFECT, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS IN DISPUTE, IS RS 50 ,00,000/- OR LESS. 5. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE CONCESSION BY THIS CBDT CIRCULAR, THIS APPEAL FILED BY THE RE VENUE MUST BE DISMISSED AS WITHDRAWN. 6. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMIT S AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DI SPUTE OR ITA NO.784/CHNY/2019 :- 3 -: CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING A PPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 7. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STA NDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO. 3/2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR . THIS IS EVIDENT FROM 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 FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT 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 LIMIT (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 WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS ITA NO.784/CHNY/2019 :- 4 -: PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY TH E FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTE D ISSUES IN THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASSESSE E, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPE AL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHIC H THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONET ARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RE SPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA-3. FURTHER, EVEN I N THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTH ORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON I SSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FI LED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFF ECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHE RE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, E ACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 8. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCU LAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS / CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D . 9. THE HONBLE SUPREME COURT IN THE CASE OF THE C OMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., IN SLP NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)T MI 811(SC) ITA NO.784/CHNY/2019 :- 5 -: HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.0 8.2019 HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LESS THAN RS.2/- CRORES, GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT, WE SEE NO REASON TO INTERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITION IS DISMISSED, LEAVING ALL TH E QUESTIONS OF LAW OPEN. 10. LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICA TIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEAL AND RESTORATION OF THE APPEAL IN THE CASE (I) IN WHICH IT CAN BE DEMONSTRATED THAT T HE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADV ERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR T HAT THE APPELLANTS SHALL BE AT LIBERTY TO POINT OUT THE CAS E WHICH IS WRONGLY INCLUDED IN THE APPEAL SO SUMMARILY DISMISSED, EITH ER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH C ASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY O THER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THI S REGARD. 11. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING T HE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF T HE COMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV P OWER LTD., ITA NO.784/CHNY/2019 :- 6 -: REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DIS CUSSIONS, THE APPEAL FILED BY THE REVENUE IS FOUND TO BE NON-MAIN TAINABLE. 12. IN THE RESULT, THE APPEAL OF REVENUE STANDS DI SMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSIO N OF HEARING ON THE 28 TH AUGUST, 2019 IN CHENNAI. SD/- SD/- ( ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER / CHENNAI * / DATED: 28 TH AUGUST, 2019. K S SUNDARAM !,- .- / COPY TO: 1 . / APPELLANT 4. / / CIT 2. !' / RESPONDENT 5. - !2 / DR 3. / () / CIT(A) 6. / GF