ACIT Central Circle 2, Coimbatore V. E.Anandan, Coimbatore

ITA 867/CHNY/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5710 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 12-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , , ' BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ I.T.A.NO.867/CHNY/2018 / ASSESSMENT YEAR :2015-16 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-(2), INCOME TAX BUILDING, RACE COURSE ROAD, COIMBATORE 641 018. VS. SHRI E.ANANDAN, 112,GOPAL LAYOUT, PONNIAYARAJAPURAM, COIMBATORE. 641 001. [PAN ACBPA 4940 L ] ( / APPELLANT) ( /RESPONDENT) ./ I.T.A.NO.525/CHNY/2019 / ASSESSMENT YEAR :2013-14 INCOME TAX OFFICER, NON CORPORATE WARD-20(5), CHENNAI 600 034 VS. M/S.SUMERU MEDIA AND COMMUNICATION PRIVATE LTD , 16/50,CAPITAL PLACE, SOUTH BANG ROAD, T.NAGAR, CHENNAI 600 017 [PAN AAHCS 4275 R ] ( / APPELLANT) ( /RESPONDENT) ) * / APPELLANT BY: MR.ARUNRAJ, JCIT,D.R ,-) * /RESPONDENT BY: MR.S.SRIDHAR,ADVOCATE * /DATE OF HEARING : 26.09.2019 * /DATE OF PRONOUNCEMENT : 26.09.2019 :2: ITA NO.867/CHNY/2018 ITA NO.525/CHNY/2019 / O R D E R PER BENCH : THESE TWO APPEALS ARE FILED BY THE ASSESSING COM MISSIONER OF INCOME TAX, COIMBATORE, THESE APPEALS CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSI ONERS OF INCOME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INV OLVED IN THIS APPEAL DOES NOT EXCEED RS.50,00,000/-. 2. 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 FURTH ER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECIS IONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST T HE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OV ERALL TAX EFFECT, EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE, IS RS 50,00,000 OR LESS. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE CONCESSION BY THIS CBDT CIRCULAR, THIS APPEAL MUST BE DISMISSED AS WIT HDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRUCTUOUS. 4. THIS CIRCULAR, ONLY ENHANCES THE MONETARY LIMIT S AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, :2: ITA NO.867/CHNY/2018 ITA NO.525/CHNY/2019 CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 5. 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 T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8THAUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APP EALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONE TARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S. 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 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 EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES IN THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE D ISPUTED ISSUES ARISE :2: ITA NO.867/CHNY/2018 ITA NO.525/CHNY/2019 IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FIL ED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFE CT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIE D IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPEC IFIED IN PARA-3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE AS SESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO A PPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3 . IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE A SSESSEE, EACH ASSESSEE SHALL BE DEALT 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 INT ACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SH ALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJ ECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. :2: ITA NO.867/CHNY/2018 ITA NO.525/CHNY/2019 7. THE HONBLE SUPREME COURT IN THE CASE OF THE C OMMISSIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., IN SL P NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)TMI 811(SC) HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.08.2019 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 PETITIO N IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. 8. LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AN D TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE C OVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CB DT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBER TY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMAR ILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY O THER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGAR D. :2: ITA NO.867/CHNY/2018 ITA NO.525/CHNY/2019 9. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING TH E PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF COMMIS SIONER OF INCOME TAX-5,NEW DELHI VS. KESHAV POWER LTD., REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THESE TWO APPEALS FIL ED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE. 10. IN THE RESULT, THESE TWO APPEALS FILED BY THE REVENUE ARE DISMISSED AS WITHDRAWN. PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 26 TH SEPTEMBER, 2019. SD/- SD/- ( ) ( INTURI RAMA RAO ) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, 3 /DATED: 26 TH SEPTEMBER, 2019. K S SUNDARAM * ,45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. ,-) /RESPONDENT 5. 5 , /DR 3. 7 ( ) /CIT(A) 6. /GF