Income Tax Officer, Patiala V. Sh. Ravinder Singh Gill, Patiala

ITA 821/CHANDI/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8611 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 16-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GEETINDER MAAN
• Keywords: Rectification of order; Tax effect
• Section: 154

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 820/CHD/2017 / ASSESSMENT YEAR : 2011-12 THE ITO, WARD-3, PATIALA VS. SH. RAJPAL SINGH GILL, 134, CIVIL LINE, PASSI ROAD, PATIALA ./PAN NO: ABXPG7116M / APPELLANT /RESPONDENT ./ ITA NO. 821/CHD/2017 / ASSESSMENT YEAR : 2011-12 THE ITO, WARD-3, PATIALA VS. SH. RAVINDER SINGH GILL, 131, CIVIL LINE, PASSI ROAD, PATIALA ./PAN NO: ABSPG0490K / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. TEJ MOHAN SINGH, ADVOCATE ' ! / REVENUE BY : SMT. GEETINDER MAAN, SR.DR # $ % /DATE OF HEARING : 11.12.2018 &'() % / DATE OF PRONOUNCEMENT : 11. 12. 2018 (*/ ORDER PER BENCH: THE CAPTIONED APPEALS HAVE BEEN PREFERRED BY THE RE VENUE AGAINST THE SEPARATE ORDERS DATED 30.03.2017 OF THE COMMISS IONER OF INCOME TAX(APPEALS), PATIALA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. SO FAR AS THE CASE OF SHRI RAJPAL SINGH GILL (ITA NO.820/CHD/2017) IS CONCERNED, THE LD. COUNSEL FOR THE ASSESSEE AT T HE OUTSET HAS STATED THAT ORIGINALLY THE ASSESSING OFFICER HAD MADE THE ADDIT ION OF RS. 1,18,09,200/- ITA NOS. 820 & 821-CHD-2017- S/SH. RAJPAL SINGH GILL RAVINDER SINGH GILL, PATIA LA 2 AGAINST WHICH THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A). HOWEVER, DURING THE PENDENCY OF APPEAL, THE ASSESSEE ALSO MO VED RECTIFICATION APPLICATION U/S 154 OF THE INCOME-TAX ACT, 1961 (I N SHORT 'THE ACT') ALSO. THE ASSESSING OFFICER ADMITTED THE CLAIM OF THE ASS ESSEE AND RECTIFIED THE ORDER AND THE TOTAL ADDITION STOOD AT RS. 70,92,900 /- AS PER ORDER DATED 28.4.2016 PASSED BY THE ASSESSING OFFICER U/S 154 O F THE ACT. HOWEVER, THEREAFTER THE LD. CIT(A) DELETED THE ENTIRE ADDITI ON MADE BY THE ASSESSING OFFICER WHICH WAS CHALLENGED BY THE REVENUE VIDE IMPUGNED ORDER DATED 30.3.2017. 3. THE REVENUE, HOWEVER, CONSIDERING THE AFORESAID RECTIFICATION ORDER PASSED BY THE ASSESSING OFFICER DATED 28.4.2016 HAS COME IN APPEAL CHALLENGING THE DELETION OF ADDITION OF RS. 70,92,9 00/- ON ACCOUNT OF LONG TERM CAPITAL GAIN, WHEREUPON, THE TAX EFFECT AS CAL CULATED BY THE ASSESSING OFFICER ASSESSING OFFICER IS RS. 14,23,8 90/-, WHICH IS BEYOND THE LIMIT (LESS THAN RS. 20 LACS) AS PER THE CBDT CIRCULAR NO. 3/2018, HENCE, THIS APPEAL OF THE REVENUE IS LIABLE TO BE D ISMISSED. 4. IN THE CASE OF SHRI RAVINDER SINGH GILL (ITA NO. 821/CHD/2017), THE LD. DR HAS SUBMITTED THAT THE TAX EFFECT INVOLV ED IN THIS CASE IS ALSO LESS THAN RS. 20 LACS. THE LD. DR HAS ALSO FAIRLY ADMITTED THAT CBDT CIRCULAR NO. 3/2018 IS APPLICABLE TO THIS APPEAL, H ENCE, THIS APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED. 5. IT MAY BE NOTED THAT CBDT VIDE CIRCULAR NO. 3/20 18 DATED 11.07.2018 HAS REVISED THE MONETARY LIMIT UPTO RS.2 0 LACS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL AND F URTHER VIDE PARA 13 OF THE SAID CIRCULAR IT HAS BEEN CLARIFIED THAT SAID C IRCULAR IS APPLICABLE ITA NOS. 820 & 821-CHD-2017- S/SH. RAJPAL SINGH GILL RAVINDER SINGH GILL, PATIA LA 3 RETROSPECTIVELY TO THE PENDING APPEALS ALSO. THE H ONBLE 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 O F THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. DHANALEKSHMI BANK LTD . (2015) 373 ITR 526 (SC), HAS DISMISSED THE APPEAL OF THE REVENUE W ITHOUT GOING INTO THE MERITS DUE TO LOW TAX EFFECT LEAVING THE QUESTION O F LAW OPEN. IN VIEW OF THE CBDT CIRCULAR NO. 03/2018 (SUPRA) AND IN THE LI GHT OF THE ABOVE REFERRED TO DECISION OF THE HON'BLE JURISDICTIONAL PUNJAB & HARYANA HIGH COURT (SUPRA), THE PRESENT APPEALS OF THE REVENUE A RE DISMISSED DUE TO LOW TAX EFFECT. 6. SINCE THE TAX EFFECT IS LESS THAN RS. 20 LACS IN BOTH THE APPEALS, IN VIEW OF THIS, BOTH THE APPEALS ARE HEREBY DISMISSED . IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEALS 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 OPE N TO BE ADJUDICATED IN AN APPROPRIATE CASE. ORDERS DICTATED AND PRONOUNCED IN THE OPEN COURT ON 11.12.2018. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 11.12 . 2018 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE ITA NOS. 820 & 821-CHD-2017- S/SH. RAJPAL SINGH GILL RAVINDER SINGH GILL, PATIA LA 4 '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR 1.