ACIT, Circle-1, Kadapa, Kadapa V. G.V. Madanmohan Reddy, Kadapa, Kadapa

ITA 829/HYD/2015

• Counselvise Citation: 82922514 RSA 2015
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 11-01-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 18-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SITHARAM
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.829/HYD/2015 ASSESSMENT YEAR 2007-2008 ACIT, CIRCLE-1, KADAPA. VS., MR. G.V. MADANMOHAN REDDY, PROP. SWETHA TRANSPORT, YERRAGUNTLA, KADAPA DIST. PAN AGFPG3302G (APPELLANT) (RESPONDENT) FOR REVENUE : MR. M. SITHARAM FOR ASSESSEE : MR. K.A. SAIPRASAD DATE OF HEARING : 18.12.2015 DATE OF PRONOUNCEMENT : 18.12.2015 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y. 2007-08. IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORD ER OF THE LD. CIT(A) IN ALLOWING THE DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 40(A)(IA). 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, MR. K.A. SAIPRASAD, SUBMITTED THAT THE TA X EFFECT IN THIS APPEAL IS LESS THAN RS. 10 LAKHS AND THEREFORE, REVENUES APPEAL IS LIABLE TO BE DISMISS ED IN VIEW OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015. THE LD. COUNSEL FOR THE ASSESSEE ALSO FILED A CHART 2 ITA.NO.827/HYD/2015 MR. G.V. MADANMOHAN REDDY, YERRAGUNTLA, KADAPA DIST., SHOWING THE TAXABLE INCOME OF THE ASSESSEE WHICH IS REPRODUCED HEREUNDER : ITA.NO. A.Y. ISSUE/ GROUND NO. QUANTUM IN DISPUTE TAX INCLUDING SC + EDU.CESS NEXT DATE OF HEARING 829/H/15 A 2007 - 08 U/S.40(A)(IA) DISALLOWANCE. GROUND NOS. 2 TO 5 26,71,748 8,64,277 (2671748X1384012 4288408 11.01.06 3. THE L.D. D.R. HAS NOT OBJECTED TO THE ABOVE CHART AND AS THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10 LAKHS, HE HAS NOT PRESSED THE APPEAL. 4. ON PERUSAL OF THE CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE FIND THAT THE CBDT HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFO RE THE TRIBUNAL, HONBLE HIGH COURT AND HONBLE SUPREME CO URT RESPECTIVELY. THE MONETARY LIMIT FIXED FOR FILING O F APPEAL BEFORE THE TRIBUNAL IS RS.10 LAKHS AND IT IS ALSO C LARIFIED THAT THE TAX EFFECT MEANS THE DIFFERENCE BETWEEN TH E TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE ON SUCH TOTAL INCOME BEING REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAIN ST WHICH, APPEAL IS INTENDED TO BE FILED AND ALSO THAT THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. PAR A-10 OF THE INSTRUCTION ALSO CLARIFIES THAT THE INSTRUCTION WIL L APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN THE HIGH COURTS/ TRIBUNAL AND HAS DI RECTED THE DEPARTMENT TO EITHER WITHDRAW OR NOT PRESS THE 3 ITA.NO.827/HYD/2015 MR. G.V. MADANMOHAN REDDY, YERRAGUNTLA, KADAPA DIST., APPEALS BELOW THE SPECIFIED TAX LIMITS. DULY TAKING NOTE OF THE CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE DISMISS THE APPEAL OF THE REVENUE WITH LIB ERTY TO THE REVENUE TO SEEK RECALL OF THIS ORDER IF THIS AP PEALS FALLS WITHIN ANY OF THE EXCEPTIONS PROVIDED IN THE CIRCUL AR. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 18.12.2015. SD/- SD/- (S. RIFAUR RAHMAN) (SMT. P. MADHAVI DEVI) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 18 TH DECEMBER, 2015 VBP/- COPY TO 1. ACIT, CIRCLE-1, KADAPA INCOME TAX OFFICE, NEAR RTC BUS STAND, SIMHAPURI COLONY, KADAPA. 2. MR. G.V. MADANMOHAN REDDY, PROP. SWETHA TRANSPORT, KADAPA ROAD, YERRAGUNTLA, KADAPA DIST., (A.P.) 3. CIT(A) - (I/C) , KURNOOL . 4. CIT, KURNOOL . 5. D.R. I.T.A.T. A BENCH, HYDERABAD. 6. GUARD FILE