DCIT, Central Circle-3(1), Hyd, Hyderabad V. A. Ashok Simha Reddy, Hyd, Hyderabad

ITA 882/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98859 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 22-02-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 30-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: A V RAGHURAM
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D.MANMOHAN, VICE PRESIDENT AND SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.881/HYD/2015 : ASSESSMENT YEARS 2005-0 6 ITA NO.882/HYD/2015 : ASSESSMENT YEARS 2006-0 7 DY. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE 3(1), HYDERABAD V/S SHRI A.ASHOKSIMHA REDDY, HYDERABAD (PAN ADHPA 3602 Q) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.KURMI NAIDU, DR RESPONDENT BY : SHRI A.V.RAGHURAM DATE OF HEARING 23 .1 2 .2015 DATE OF PRONOUNCEMENT 23.12.2015 O R D E R PER BENCH : THESE APPEALS ARE FILED BY THE REVENUE. AT THE OU TSET, IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN EACH OF TH ESE APPEALS IS BELOW RS.10 LAKHS. VIDE CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, BEARING F.NO.279/- MISC.142/2007-ITI(PT), THE CBDT, FUNCTIONING UNDER THE MINISTRY OF FINANCE, WITH A VIEW TO REDUC E UNNECESSARY LITIGATION ON THEIR PART, HAS ISSUED A CIRCULAR, WH EREIN THEY HAVE REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DE PARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SUPR EME COURT. INSOFAR AS THE TRIBUNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LAKHS. CBDT SPECIFIED THAT WHERE THE TAX EFFE CT DOES NOT EXCEED THE MONETARY LIMIT SPECIFIED THEREIN, THE CONCERNED AUTHORITY HAS TO WITHDRAW ITS APPEAL OR IT NEED NOT PRESS THE SAME. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THEREIN IS APPLICABLE TO ALL PENDING APPEALS, THOUGH THEY ARE FILED BY THE REVEN UE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFI ED THAT THE ASSESSING OFFICER HAS TO CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUE(S) IN THE CAS E OF EVERY ASSESSEE. ITA NO.881 & 882/HYD/2015 SHRI A.ASHOKSIMHA REDDY, HYDERABAD 2 IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUE ARISES IN MORE THAN ONE YEAR(S), APPEAL(S) CAN BE FILED IN RESPECT OF S UCH ASSESSMENT YEAR(S) IN WHICH TAX EFFECT IN RESPECT OF THE DISPU TED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED, IN OTHER WORDS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS THAN THE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME HAS TO BE WITHDR AWN FOR THAT YEAR, FOR WANT OF TAX EFFECT. HOWEVER, AN EXCEPTION IS M ADE TO THIS DIRECTION WITH REGARD TO A COMBINED ORDER PASSED BY THE FIRST APPELLATE AUTHORITY. THAT IS, IF IN ONE OF THE YEARS THE TAX EFFECT IS MORE THAN RS.10 LAKHS AND THE REVENUE DECIDES TO FILE AN APPE AL, IN RESPECT OF OTHER YEARS COVERED BY THE SAID ORDER ALSO, REVENUE IS ELIGIBLE TO FILE APPEAL, EVEN THOUGH THE TAX EFFECT IN EACH OF THOSE YEARS IS LESS THAN RS.10 LAKHS. IT WAS ALSO CLARIFIED THAT MERELY BEC AUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFFECT, IT DOES NOT COME IN THE WAY OF THE DEPARTMENT IN FILING APPEAL FOR OTHER YEARS(S), AND IT DOES NOT MEAN THAT THE DEPARTMENT HAS ACQUIESCED THE ISSUE. 2. THE ABOVE CIRCULAR WAS SPECIFICALLY MADE APPLIC ABLE TO ALL PENDING APPEALS. IN THE PRESENT CASES, TAX EFFECT ON ACCOUNT OF THE RELIEF GRANTED BY THE CIT(A) WHICH LED TO THE FILIN G OF THE PRESENT APPEALS BY THE REVENUE, IS ADMITTEDLY, LESS THAN R S.10 LAKHS IN EACH YEAR. 3. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED S. 268A OF THE INCOME TAX ACT,1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS TO THE INCOME-TAX A UTHORITIES, FIXING THE MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS. IN THE LIGHT OF THE CIRCULAR DATED 10.12.2015, ISSUED BY THE CBDT IN EXERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTIO N (1) OF S.268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENTAL RE PRESENTATIVE ITA NO.881 & 882/HYD/2015 SHRI A.ASHOKSIMHA REDDY, HYDERABAD 3 FAIRLY ADMITTED THAT THE REVENUE EFFECT IN EACH OF THESE APPEALS IS LESS THAN THE LIMIT PRESCRIBED IN PARA-3 OF THE ABOVE CI RCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CA SE, WE DISMISS THE APPEALS OF THE REVENUE AS WITHDRAWN/NOT PRESSED, AS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (D.MANMOHAN) (B.RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER. DT/- 23 RD DECEMBER, 2015 COPY FORWARDED TO: 1. SHRI A.ASHOKSIMHA REDDY, H.NO.17-2-678, MADANNAP ET HYDERABAD 2. DY. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE 3(1), HYDERABAD 3. 4. COMMISSIONER OF INCOME-TAX(APPEALS) XI, HYDERABAD COMMISSIONER OF INCOME-TAX (CENTRAL) , HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.