The Dy. CIT., Circle - 2(2), Surat V. The Surat District Co. Operative Bank Ltd., Surat

ITA 94/AHD/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5537 (ITAT-SURAT)
• Duration Of Justice: 4 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 11-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: O P VAISHNAV
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, HONBLE JUDICIAL MEMBER & DR. A. L. SAINI, HONBLE ACCOUNTANT MEMBER ./ITA NO.94/AHD/2017 ( [ [ / ASSESSMENT YEAR:2012-13) THE DCIT, CIRCLE-2(2), SURAT. VS. THE SURAT DISTRICT CO. OPERATIVE BANK LTD., KANPITH, LALGATE, SURAT. ./ ./PAN/GIR NO.: AAAAT2985Q (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI MITISH MODI, CA RESPONDENT BY : SHRI O. P. VAISHNAV, CIT(DR) / DATE OF HEARING : 11/05/2020 /DATE OF PRONOUNCEMENT : 11/05/2020 / O R D E R DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL FILED BY THE REVENUE, PERTAINING TO ASSESSMENT YEAR 2012-13, IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEAL)-1, SURAT [IN SHORT CIT(A)] IN APPEAL NO. CAS-1/007/2015-16 DATED 31.10.2016, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. RECENTLY THE CBDT HAS ISSUED CIRCULAR NO. 17/2019 DATED 08.08.2019, WHEREBY THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN INCREASED AS MEASURE FOR REDUCING LITIGATION. THE REVISED MONETARY LIMITS LAID DOWN IN PARA-2 OF THIS CIRCULAR ARE AS FOLLOWS: 1. BEFORE APPELLATE TRIBUNAL RS. 50,00,000/- 2. BEFORE HIGH COURT RS.1,00,00,000/- 3. BEFORE SUPREME COURT RS. 2,00,00,000/- 3. IN THE PRESENT CASE, THE TAX EFFECT BY THE REVENUE IS LESS THAN RS.50,00,000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 11/01/2017 AND WAS WITHIN THE MONETARY LIMIT IN THE FORM OF TAX EFFECT FOR FILING APPEALS BEFORE TRIBUNAL, IN VIEW OF ITA NO.94/AHD/2017 ASSESSMENT YEAR:2012-13 THE SURAT DISTRICT CO. OP BANK LTD. PAGE | 2 THE RECENT CIRCULAR OF CBDT, EVEN SUCH APPEALS WILL BE GOVERNED BY THE NEW MONETARY LIMITS LAID DOWN IN THE CBDT CIRCULAR NO.17/2019 REFERRED TO ABOVE. 5. IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS VS. INDIAN OIL CORPORATION LTD. REPORTED IN 267 ITR 272 WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISIONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID DOWN THAT WHEN A CIRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUND BY IT AND CANNOT BE ALLOWED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY TO THE TERMS OF THE STATUTE. THE APPEAL UNDER CONSIDERATION HAS CERTAINLY BEEN FILED CONTRARY TO THE CIRCULAR ISSUED BY THE CBDT CIRCULAR NO.17 DATED 08.08.2019. 6. IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL FILED BY THE DEPARTMENT, AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), IS CONTRARY TO THE POLICY DECISION OF THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY THE DEPARTMENT IN ITA NO. 94/AHD/2017 IS DISMISSED IN LIMINE . 8. IN THE RESULT, THE APPEAL OF THE REVENUE (IN ITA NO.94/AHD/2017 FOR AY. 2012-13) IS DISMISSED. ORDER PRONOUNCED ON 11/05/2021 BY PLACING RESULT ON NOTICE BOARD. SD/- (PAWAN SINGH) SD/- (DR. A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 11/05/2020 (SAMANTA, PS) COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. PR. CIT 5. DR /TRUE COPY/ BY ORDER // TRUE COPY // ASSISTANT REGISTRAR, ITAT, SURAT