DCIT, Central Circle - 3(3), Kolkata , Kolkata V. M/s. Raja Biscuits Industries P. Ltd., Now M/s. Raja Udyog Pvt. Ltd., , Kolkata

ITA 921/KOL/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 4429 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 07-05-2018
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI P.M.JAGTAP, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.921/KOL/2018 ASSESSMENT YEAR:2004-05 DCIT, CENTRAL CIRCLE- 3(3), AAYKAR BHAWAN, POORVA, E.M BY-PAS, 110, SHANTI PALLY, 4 TH FLOOR, KOLKATA-700107 / V/S . M/S RAJA BISCUIT INDUSTRIES PVT. LTD., ( NOW M/S RAJA UDYOG PVT. LTD. ), 8, A.J.C. BOSE ROAD, 3 RD FLOOR, KOLKATA-700 017 [ PAN NO. AACCR 0764 P ] /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI GAUTAM KR. MONDAL, ADDL. CIT-DR /BY RESPONDENT NONE /DATE OF HEARING 20-11-2019 /DATE OF PRONOUNCEMENT 27-11-2019 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2004-05 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKATAS O RDER DATED 29.12.2017, PASSED IN CASE 352/CIT(A)-19/CIR-7/14-15, INVOLVING PROCEE DINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 OF THE ACT; IN SHORT THE ACT. HEARD BOTH THE SIDES. CASE FILE PERUSED. 2. IT IS SEEN AT THE OUTSET THAT THE TAX EFFECT OF 36,59,654/-ON THE DISPUTED ADDITIONS BEFORE US IS LESS THAN RS. 50 LACS IN CAS ES I.E. LESS THAN THE PRESCRIBED ITA NO.921/KOL/2018 A.Y. 2004-0 5 DCIT,CC-3(3), KOL. VS. M/S RAJA BIS CUITS INDS. P LTD. PAGE 2 REVISED THRESHOLD LIMIT IN CBDTS LATEST CIRCULAR N O17/2019 DATED 08.08.2019. IT WILL BE PERTINENT TO REPRODUCE THE RELEVANT PORTION OF THE SAID CIRCULAR AS FOLLOWS:- 2 . AS A STEP TOWARD FURTHER MANAGEMENT OF LITIGATIO N, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50,00,000 2. BEFORE HIGH COURT 1,00,00,000 3. BEFORE SUPREME COURT 2,00,00,000 3.1 WE FIND THAT INTENTION BEHIND THE CIRCULAR NO17 /2019 DATED 08.08.2019 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS- -VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSES SMENT YEAR IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF, THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES AR ISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES 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 I S LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF C OMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENTS YEAR , 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 IN PARA 3. IN CAS E WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EAC H ASSESSEE SHALL BE DEALT WITH SEPARATELY. 3.2. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DATED 0 8.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, WE DO NOT SEE THIS CASE FALLIN G UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR PER SE . WE ALSO FIND THAT THIS CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS AS WELL. H ONBLE APEX COURT IN COMMISSIONER OF CUSTOMS VS IND IAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) HAS SETTLED THE LAW THAT CBDTS CIRCULARS ARE VERY MUCH BINDING ON REVENUE AUTHORITIES. WE THUS HOLD THAT T HIS REVENUES APPEAL RAISING SOLE ISSUE OF 36,59,654/- DESERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT. WE MAKE IT ITA NO.921/KOL/2018 A.Y. 2004-0 5 DCIT,CC-3(3), KOL. VS. M/S RAJA BIS CUITS INDS. P LTD. PAGE 3 CLEAR THAT IT SHALL VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RECTIFICATION IN CASE IT IS FOUND THAT ANY OF THE APPEAL INVOLVE OPE RATIONS OF EXCEPTION CLAUSES IN THE TAX EFFECT CIRCULAR AS PER LAW. 4. THIS REVENUES APPEAL IS DISMISSED FOR INVOLVING LOWER THAN THE PRESCRIBED MINIMUM TAX EFFECT. ORDER PRONOUNCED IN OPEN COURT ON 27/11/2019 SD/- SD/- ( !) (#$ ') (P.M.JAGTAP) (S.S.GODARA ) VICE PRESIDENT JUDICIAL MEM BER *DKP-SR.PS ( - 27/11/2019 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S RAJA UDYOG PVT. LTD.,, KOLKATA-13 2. /RESPONDENT-PCIT-11, 10B, MIDDLETON ROW, KOLKATA-71 3. + . / CONCERNED CIT 4. . - / CIT (A) 5. / $$+ , + / DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ +,