Income Tax Officer TDS Ward-1 , Ballari V. M/s Sai Krishna Minerals Pvt Ltd , Hospet

ITA 914/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7336 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 24-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES B, BANGALORE BEFORE SHRI A.K.GARODIA, AM & SHRI GEORGE GEORGE K, JM ITA NO.912/BANG/2017 : ASST.YEAR 2005-2006 ITA NO.913/BANG/2017 : ASST.YEAR 2006-2007 ITA NO.914/BANG/2017 : ASST.YEAR 2007-2008 THE INCOME TAX OFFICER TDS WARD 1 BALLARI. M/S.SAI KRISHNA MINERALS PRIVATE LIMITED, 3 RD CROSS, PATEL NAGAR HOSPET. PAN :AAICS2188L. (APPELLANT) VS. (RESPONDENT) APPELLANT BY : SMT.PADMAMEENAKSHI, JCIT RESPONDENT BY : --- NONE --- DATE OF HEARING : 02.11.2017 DATE OF PRONOUNCEMENT : 03.11.2017 O R D E R PER GEORGE GEORGE K, JM THESE THREE APPEALS AT THE INSTANCE OF THE REVENUE ARE DIRECTED AGAINST THREE SEPARATE ORDERS OF THE CIT(A ), DATED 13/14.02.2017. THE RELEVANT ASSESSMENT YEARS ARE 20 05- 2006, 2006-2007 AND 2007-2008. 2. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. HOWE VER, WE PROCEEDED TO DISPOSE OF THE APPEAL, AFTER HEARING T HE LEARNED DEPARTMENTAL REPRESENTATIVE. 3. AT THE OUTSET, IT IS OBSERVED THAT THE TAX EFFEC T INVOLVED IN THESE APPEALS IS BELOW RS.10 LAKH. THE CBDT, WITH A VIEW TO ITA NOS.912, 913, 914/BANG/2017 M/S.SAI KRISHNA MINERALS PVT. LTD. 2 REDUCE UNNECESSARY LITIGATION ON THEIR PART, HAS IS SUED A CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015, WHER EIN THEY HAVE REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIB UNAL, HIGH COURTS AND SUPREME COURT. INSOFAR AS THE TRIB UNAL IS CONCERNED, THE MONETARY LIMIT SPECIFIED IS RS.10 LA KH. THE CBDT SPECIFIED THAT WHERE THE TAX EFFECT DOES NOT E XCEED THE MONETARY LIMIT SPECIFIED THEREIN, THE CONCERNED AUT HORITY HAS TO WITHDRAW ITS APPEAL OR IT NEED NOT PRESS THE SAM E. IT IS FURTHER SPECIFIED THAT THE TAX EFFECT INDICATED THE REIN IS APPLICABLE TO ALL PENDING APPEALS, THOUGH THEY ARE FILED BY THE REVENUE PRIOR TO THE ISSUANCE OF THE SAID CIRCULAR. IT WAS ALSO CLARIFIED THAT THE ASSESSING OFFICER HAS TO CALCULA TE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESP ECT OF THE DISPUTED ISSUE/S IN THE CASE OF EVERY ASSESSEE. IF , IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUE ARISES IN MORE T HAN ONE YEAR(S), APPEAL(S) CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR(S) IN WHICH TAX EFFECT IN RESPECT OF THE DISPU TED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED. IN OTHER WOR DS, IF THERE ARE A NUMBER OF YEARS, IF THE TAX EFFECT IS LESS TH AN THE SPECIFIED LIMIT IN ONE YEAR, APPEAL CANNOT BE FILED OR THE SAME HAS TO BE WITHDRAWN FOR THAT YEAR, FOR WANT OF TAX EFFECT. HOWEVER, AN EXCEPTION IS MADE TO THIS DIRECTION WIT H REGARD TO A COMBINED ORDER PASSED BY THE FIRST APPELLATE AUTH ORITY. THAT IS, IF IN ONE OF THE YEARS THE TAX EFFECT IS M ORE THAN RS.10 LAKH AND THE REVENUE DECIDES TO FILE AN APPEAL, 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 ITA NOS.912, 913, 914/BANG/2017 M/S.SAI KRISHNA MINERALS PVT. LTD. 3 IS LESS THAN RS.10 LAKH. IT WAS ALSO CLARIFIED THA T MERELY BECAUSE THE APPEAL IS DISMISSED FOR WANT OF TAX EFF ECT, IT DOES NOT COME IN THE WAY OF THE DEPARTMENT IN FILING APP EAL FOR OTHER YEARS(S), AND IT DOES NOT MEAN THAT THE DEPAR TMENT HAS ACQUIESCED THE ISSUE. THE ABOVE CIRCULAR WAS ALSO S PECIFICALLY MADE APPLICABLE TO ALL PENDING APPEALS. 4. THE LEGISLATURE IN ITS WISDOM HAS INTRODUCED SEC TION 268A OF THE INCOME TAX ACT, 1961, WHEREBY THE BOARD IS EMPOWERED TO ISSUE ORDERS/INSTRUCTIONS/DIRECTIONS T O THE INCOME-TAX AUTHORITIES, 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 EX ERCISE OF THE POWERS CONFERRED IN IT BY SUBSECTION (1) OF SEC TION 268A, WE ARE OF THE VIEW THAT THE APPEAL FILED HEREIN SHO ULD NOT HAVE BEEN PRESSED BY THE REVENUE. THE LEARNED DEPARTMENT AL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT IN THESE APPEALS IS LESS THAN THE PRESCRIBED LIMIT IN PARA-3 OF THE ABOVE CIRCULAR ISSUED BY THE CBDT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DISMISS THE APPEALS O F THE REVENUE AS NOT ADMITTED, BECAUSE OF LOW TAX EFFECT. 5. HOWEVER, THE REVENUE IS AT LIBERTY TO MOVE APPRO PRIATE APPLICATION/PETITION IN CASE IF IT IS FOUND THAT TH E CASE IS COVERED BY ONE OF THE EXCEPTION(S) CARVED OUT IN TH E SAID CIRCULAR. ITA NOS.912, 913, 914/BANG/2017 M/S.SAI KRISHNA MINERALS PVT. LTD. 4 6. IN THE RESULT, THE APPEALS BY THE REVENUE ARE DI SMISSED. ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THIS 03 RD DAY OF NOVEMBER , 2017. SD/- SD/- (A.K.GARODIA) (GEORGE GEORGE K.) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE ; DATED : 03 RD NOVEMBER, 2017. DEVDAS* COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER, (SR.PRIVATE SECRETARY) ITAT, BANGALORE 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT, GULBARGA 4. CIT(A), GULBARGA. 5. DR, ITAT, BANGALORE 6. GUARD FILE.