ACIT-CIRCLE-3, Nagpur V. M/S SHREE RAMDEOBABA STEEL PVT. LTD., Nagpur

ITA 92/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1685 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2015
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 24-02-2014
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: HIMESH DAMBLE
• Keywords: Tax effect
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 92/NAG./2014 ( ASSESSMENT YEAR : 200708 ) ASSTT. COMMISSIONER OF INCOME TAX CIRCLE3, NAGPUR APPELLANT V/S M/S. SHREE RAMDEOBABA STEEL PVT. LTD. CORPORATIN BUILDING, OLD MOTAR STAND ITWARI, NAGPUR 440 002 PAN AACCS4430K .... RESPONDENT REVENUE BY : SHRI NARENDRA KANE ASSESSEE BY : SHRI HIMESH DAMBLE DATE OF HEARING 19.08.2015 DATE OF ORDER 28.08 .2015 O R D E R PER MUKUL K. SHRAWAT, J.M. THIS APPEAL FILED BY THE REVENUE IS EMANATING FROM TH E IMPUGNED ORDER DATED 8 TH JANUARY 2014, PASSED BY THE LEARNED COMMISSIONER (APPEALS)-II, NAGPUR, FOR THE ASSESSME NT YEAR 2002-03, ON THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LEARNED CIT(A) HAS ERRED IN DELETING THE PENALTY OF ` 3.30 LAKH UNDER SECTION 2711 OF THE ACT. M/S. SHREE RAMDEOBABA STEEL PVT. LTD. 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LEARNED CIT(A) ERRED IN SO FAR AS NOT APPRECIAT ING THAT THE INCOME OF ` 9,15,500 DISCLOSED BY THE ASSESSEE IN THE RETURN O F INCOME FILED UNDER SECTION 153A WOULD NEVER HAVE BE EN BROUGHT TO TAX IF THERE WAS NO SEARCH ACTION. THIS ISSUE IS COVERED IN FAVOUR OF THE REVENUE BY LATEST DECISION OF HONBLE SUPREME COURT IN THE CASE OF MAK DATA PVT. LTD. (TS-545-SC- 2013). 2. AT THE OUTSET, THE RESPONDENT ASSESSEE HAS RAISED A PRELIMINARY OBJECTION THAT THE TAX EFFECT IS LESS THAN THE PRES CRIBED LIMIT, THEREFORE, THIS APPEAL OF THE REVENUE CAN BE DISMISSED IN LIMINE. H OWEVER, FROM THE SIDE OF THE REVENUE, THE LEARNED DEPARTMENTAL REPRESENTATIV E, SHRI NARENDRA KANE, APPEARED, HAS INFORMED THAT IDENTICAL ISSUE OF LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT IS INVOLVED IN ASSESSEES OWN CASE FOR OTHER YEARS AS WELL. ACCORDING TO THE LEARNED DEPARTMENTAL REPRESE NTATIVE, A SEARCH UNDER SECTION 132(1) WAS CONDUCTED ON THE ASSESSEE ON 27 TH SEPTEMBER 2005, DUE TO WHICH THE PROCEEDINGS UNDER SECTION 153A WERE IN VOKED IN NUMBER OF ASSESSMENT YEARS. ACCORDING TO THE LEARNED DEPARTME NTAL REPRESENTATIVE, SINCE IN NUMBER OF OTHER ASSESSMENT YEARS, THE PENA LTY WAS LEVIED IN IDENTICAL MANNER, THEREFORE, THIS YEAR SHOULD NOT B E SEGREGATED TO DISMISS IN LIMINE. 3. FROM THE SIDE OF THE ASSESSEE, THE LEARNED COUNSEL FOR THE ASSESSEE HAS INFORMED THAT THE ORDER OF THE LEARNED CIT(A) F OR THE ASSESSMENT YEAR 2002-03, IS AN INDEPENDENT ORDER DATED 8 TH JANUARY 2014. IT IS NOT A CONSOLIDATED ORDER. BY THIS SEPARATE AND INDIVIDUAL ORDER, PENALTY LEVIED UNDER SECTION 271(1)(C) WAS DELETED. THE LEARNED CO UNSEL FOR THE ASSESSEE M/S. SHREE RAMDEOBABA STEEL PVT. LTD. 3 HAS INFORMED THAT VIDE F.NO.279/MISC.-142/2007-ITJ/ PT DATED 10 TH JULY 2014, THE MONETORY LIMITS HAVE BEEN REVISED FOR THE PURPOSE OF FILING OF APPEALS BEFORE THE ITAT. A CLARIFICATION VIDE THAT LETTER HAS ALSO BEEN MADE BY THE CBDT AND PARA-5 IS RELEVANT IN RESPECT OF TH E OBJECTIONS RAISED BY THE LEARNED DEPARTMENTAL REPRESENTATIVE, IS REPRODUCED BELOW:- 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTE D ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR,APPEAL, CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED IS SUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED INPARA 3. IN OTHER WORDS, HENCEFORTH, APPEALS CAN BE FILED ONLY WITH REFERENC E TO THE TAX EFFECT IN THE RELEVANT ASSESSMENT YEAR. HOWEVER, IN CASE OF A COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTH ORITY, WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON I SSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEAL SHALL BE FILE D IN RESPECT OF ALL SUCH ASSESSMENT YEARS EVEN IF THE 'TAX EFFEC T'IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S ), IF IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH 'TAX EFFECT' EXCEEDS THE MONETARY LIMIT PRESCRIBED. IN C ASE WHERE A COMPOSITE ORDER / JUDGMENT INVOLVES MORE THAN ONE A SSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 4. HAVING HEARD THE SUBMISSIONS OF BOTH THE PARTIES, W E ARE OF THE VIEW THAT THE IMPUGNED ORDER OF THE LEARNED CIT(A) WAS P ASSED FOR THE ASSESSMENT YEAR 2002-03 DATED 8 TH JANUARY 2014 AND ADMITTEDLY IT WAS NOT A CONSOLIDATED ORDER BUT A SINGLE ORDER. APART FROM THIS REASON, WE HAVE ALSO EXAMINED THE ISSUE OF APPLICATION OF CBDT CIRCULARS ISSUED TIME TO TIME PRESCRIBING THE MONETORY LIMIT FOR FILING OF APPEAL S. IN THE LIGHT OF THE ABOVE DISCUSSION, WE HAVE NOT DECIDED THE MERITS OF THE C ASE PERTAINING TO THE PENALTY LEVIED UNDER SECTION 271(1)(C) BUT DISMISSE D THE APPEAL OF THE M/S. SHREE RAMDEOBABA STEEL PVT. LTD. 4 REVENUE AFTER ACCEPTING THE PRELIMINARY OBJECTIONS OF THE RESPONDENT ASSESSEE, HENCE, DISMISSED IN LIMINE. 5. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28.08.2015 SD/ - SHAMIM YAHYA ACCOUNTANT MEMBER SD/ - MUKUL K. SHRAWAT JUDICIAL MEMBER NAGPUR, DATED: 28.08.2015 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, NAGPUR CITY CONCERNED; (5) THE DR, ITAT, NAGPUR; (6) GUARD FILE. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY A SSISTANT REGISTRAR ITAT, NAGPUR