ITO Non Corporate Ward 1(2), CHENNAI V. Dr. R.Gunaseelan, CHENNAI

ITA 802/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1700 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 25-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNDERARAJANADDL
• Assessee Lawyers: B RAMAKRISHNANC A
• Keywords: Tax effect
• Section: 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & S HRI S.JAYARAMAN , ACCOUNTANT MEMBER ./ I.T.A.NOS.799, 800, 801 & 802/CHNY/2019 / ASSESSMENT YEARS : 2011-12, 2012-13, 2013-14 & 2014-15 THE INCOME TAX OFFICER, NON-CORPORATE WARD-1(2), CHENNAI. VS. DR.R.GUNASEELAN , NEW NO.56,OLD NO.116, DR.RADHAKRISHNAN SALAI, MYLAPORE,CHENNAI 600 004. [PAN AACPG 1250 E] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.SUNDER AR AJAN,ADDL. C.I.T D.R !' /RESPONDENT BY : MR.B.RAMAKRISHNAN,C.A # $ %& / DATE OF HEARING : 13 - 05 - 20 20 '( %& / DATE OF PRONOUNCEMENT : 13 - 05 - 20 20 !' / O R D E R PER BENCH THESE APPEALS ARE FILED BY THE REVENUE AGAINST THE CONSOLIDATED ORDER OF THE COMMISSIONER OF INCOME TA X (APPEALS)- 2, CHENNAI IN APPEAL NOS.81,70,82 & 231/2016-17, DA TED 31.12.2018, FOR THE ASSESSMENT YEARS 2011-12, 2012- 13, 2013-14 ITA NOS.799 TO 802/CHNY/2019 DR.R.GUNASEELAN :- 2 -: & 2014-15 AND MOST IMPORTANTLY, THE TAX EFFECT INVO LVED IN ALL THESE FOUR APPEALS DOES NOT EXCEED RS.50,00,000/-. 2. MR.SUNDERARAJAN REPRESENTED ON BEHALF OF THE REV ENUE AND MR.B.RAMAKRISHNAN, REPRESENTED ON BEHALF OF THE ASS ESSEE. 3. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC .142/2007- ITJ(PT) DATED 8 TH AUGUST, 2019, THE INCOME TAX DEPARTMENT 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. 3.1 IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND TH E CONCESSION BY THIS CBDT CIRCULAR, ALL THESE FOUR APPEALS MUST BE DISMISSED AS WITHDRAWN. 4. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMIT S AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DI SPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING A PPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 5. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE 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 ITA NOS.799 TO 802/CHNY/2019 DR.R.GUNASEELAN :- 3 -: 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 AMENDMENT 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 F OLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT ( .) 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 WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES IN THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASSESSEE, TH E DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH T HE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN A SSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA-3. FURTHER, EVEN IN THE CASE OF COMPOSITE O RDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSE SSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEME NT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEAL T WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 6. 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/ CRO SS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CRO SS ITA NOS.799 TO 802/CHNY/2019 DR.R.GUNASEELAN :- 4 -: OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. THE HONBLE SUPREME COURT IN THE CASE OF THE CO MMISSIONER OF INCOME TAX-5, NEW DELHI VS. KESHAV POWER LTD., I N SLP NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)T MI 811(SC) 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 LEA VE PETITION IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. 8. LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY K INDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICA TIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATIO N OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED TH AT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE I NADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS . 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 ES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMIS SED BY FILING HE NECESSARY APPLICATION EITHER OWING TO WRONG COMP UTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS. ITA NOS.799 TO 802/CHNY/2019 DR.R.GUNASEELAN :- 5 -: 9. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING TH E PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF COMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV P OWER LTD., REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DIS CUSSIONS, ALL THE FOUR APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE. 10. IN THE RESULT, ALL THE FOUR APPEALS FILED BY THE RE VENUE FOR THE ASSESSMENT YEARS 2011-12, 2012-13, 2013-14 & 20 14-15 ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSI ON OF HEARING ON 13 TH MAY, 2020, AT CHENNAI. SD/- SD/- ( ) (S. JAYARAMAN) # !$ /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) % !$ / JUDICIAL MEMBER ) $ / CHENNAI * / DATED: 13 TH MAY, 2020. K S SUNDARAM + !%,- . -% / COPY TO: 1 . / APPELLANT 3. # /% () / CIT(A) 5. -23 !%4 / DR 2. !' / RESPONDENT 4. # /% / CIT 6. 35 6$ / GF