ACIT, Gwalior V. M/s. Osho Associates, Gwalior

ITA 91/AGR/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94165 (ITAT-AGRA)
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 19-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI C. M. GARG, JUDICIAL MEMBER ITA NO. 91/AGRA/2015 ASSTT. YEAR : 2009-10 A.C.I.T., CIRCLE 3(1), VS. M/S. OSHO ASSOCIATES, GWALIOR. 30, SATYADEV NAGAR ROAD, GWALIOR. [PAN:AABFO 4964F] (APPELLANT) (RESPONDENT) APPELLANT BY : SH. WASEEM ARSHAD, SR. DR RESPONDENT BY : SH. RAJENDRA SHARMA, ADVOCATE DATE OF HEARING : 21.12.2015 DATE OF PRONOUNCEMENT : 23.12.2015 ORDER PER S.V. MEHROTRA, ACCOUNTANT MEMBER: THIS APPEAL HAS BEEN PREFERRED BY REVENUE AGAINS T THE ORDER OF CIT(A)-II, AGRA DATED 23.03.2015 FOR THE ASSESSMENT YEARS 2004-05. 2. THIS APPEAL HAS BEEN FIXED FOR HEARING IN VIEW O F RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LACS FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME-TAX ACT. 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATE D 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE ITAT WHEREIN ITA NO.91/AGRA/2015 2 THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. F URTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOUL D APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT O F RS.10 LAKH MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED DR APPEARING ON BEHALF OF THE REVENU E BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FURTHER REFERRE D TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LI MIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTH ER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPE AL OF THE REVENUE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE P ARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THIS APPEAL BY THE REVENUE IS BELOW RS. 10.00 LACS AND, THEREFORE, WE DEEM IT PROPER TO DIS MISS THE APPEAL PARTICULARLY BECAUSE ALL THE PENDING APPEALS ARE COVERED BY CIRC ULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RE CEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOV E RS.10 LACS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF E XCEPTIONS CULLED OUT IN THE CIRCULAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEO US APPLICATION FOR RECALLING OF THIS ORDER WHICH THE TRIBUNAL WILL CONSIDER IN ACCO RDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION O F THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENU E ON THE ISSUE INVOLVED ITA NO.91/AGRA/2015 3 IN THIS APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUES, INVOLVED IN THIS APPEAL, BEFORE ITAT ON MER ITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LACS. 7. KEEPING IN VIEW THE ABOVE CIRCULAR AND THE PROVI SIONS OF SECTION 268A OF THE INCOME-TAX ACT, 1961 AND WITHOUT GOING INTO MERITS OF THE CASE, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10.00 LACS. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23.12.2015. SD/- SD/- (C.M. GARG) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :23.12.2015 *AKS/- COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT. REGISTRAR ITA NO.91/AGRA/2015 4 DATE INITIAL 1. DRAFT DICTATED ON 21.12.15 PS 2. DRAFT PLACED BEFORE AUTHOR 23.12.15 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.