DCIT, V. Smt. A.K. Fouzia,

ITA 987/BANG/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95410 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 18-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R AVI SHANKAR DR P K SRIHA
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND BEFORE SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER ITA NO. 987 / BANG/20 1 3 (ASSESSMENT YEAR S : 2007 - 08 ) DEPUTY COMMR. OF INCOME - TAX, CENT RAL CIRCLE 2(3), BANGALORE. VS. APPELLANT SMT. A.K.FOUZIA, MOYEEN VILLA LONGFORD TOWN, BANGALORE. RESPONDENT AND CROSS OBJN.NO.11/BANG/2014 (IN ITA NO. 987/ BANG/20 13 (ASSESSMENT YEAR S : 2007 - 08) (BY ASSESSEE) ASSESSEE BY: SHRI R AVI SHANKAR, ADVOCATE. RESPONDENT BY: DR.P.K.SRIHARI, ADDL.CIT(DR) DATE OF HEARING : 29/12/2015 DATE OF PRONOUNCEMENT: 29 / 12 /2015. O R D E R PER ABRAHAM P GEORGE, AM : TH IS IS AN APPEAL AND CROSS OBJECTION FILED BY REVENUE AND ASSES SEE RESPECTIVELY ARE DIRECTED AGAINST ORDER OF CIT(A) , MYSORE FOR A. Y. 2007 - 08. ITA NO . 987 /BANG/201 3 & CO 11/ANG/2014 SMT. A.K.FOUZIN PAGE 2 OF 3 02. WHEN THE APPEAL WAS TAKEN UP FOR HEARING LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT TAX EFFECT INVOLVED IN THIS APPEAL WAS LESS THAN RS.10 LAKHS FOR THE IMPUGNE D ASSESSMENT YEAR AND BY VIRTUE OF CIRCULAR NO.21/2015, DT.10.12.2015, WAS BELOW THE LIMITS LAID DOWN FOR FILING APPEALS BEFORE THIS TRIBUNAL. 03. LD. DR SUBMITTED THAT PARA 8 OF THE CIRCULAR WAS NOT APPLICABLE IN THIS CASE. THEREFORE HE DID NOT OBJECT TO THE APPLICATION OF THE CIRCULAR. HOWEVER LD DR STATED THAT EXISTENCE OR NOT OF ANY REVENUE AUDIT OBJECTIONS LEADING TO THE FILING OF THE APPEAL NEEDED TO BE ASCERTAINED. 04. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTENTIONS. PARA 4 OF THE CIRCULAR NO.21/2015 (SUPRA) IS REPRODUCED HEREUNDER : 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RES PECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRED TO AS DISPUTED ISSUES ). HOWEVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS, THE TAX EF FECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 05. THE TAX EFFECT ON THE ISSUES AND / OR THE PENALTY THAT IS DISPUTED BY THE REVENUE IS LESS THAN RS.10 LAKHS FOR THE ITA NO . 987 /BANG/201 3 & CO 11/ANG/2014 SMT. A.K.FOUZIN PAGE 3 OF 3 IMPUGNED ASSESSMENT YEAR . CONSTITUTIONAL VAL IDITY OF ANY PROVISIONS OF THE ACT OR RULES NOR THE LEGALITY OR VIRES OF ANY BOARD ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR WAS AN ISSUE BEFORE THE LOWER AUTHORITIES. REVENUE HAS NOT BROUGHT TO OUR NOTICE ANYTHING TO SHOW THAT THE APPEAL AROSE ON AN ISSUE EMANATING FROM ANY REVENUE AUDIT OBJECTIONS ACCEPTED BY THE DEPARTMENT. ADDITION GIVING RISE TO THE APPEALS DOES NOT RELATE TO ANY UNDISCLOSED FOREIGN ASSETS / BANK ACCOUNTS. THUS WE FIND THAT THE CIRCULAR NO.21/ 2015 (SUPRA) IS SQUARELY APPLICAB LE IN THIS CASE. HOWEVER IF REVENUE, AT A LATER STAGE FIND THAT APPEAL ARISE OUT OF ISSUES EMANATING FROM AUDIT OBJECTION IT WILL BE FREE TO FILE MP FOR RECALLING THIS ORDER. SINCE THE APPEAL OF THE REVENUE IS DISMISSED, ASSESSEE S CO HAS BECOME INFRUCT UOUS. 06. WITH THE ABOVE OBSERVATIONS APPEAL OF THE REVENUE AS WELL AS CO OF ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 29 TH DECEMBER , 201 5 . SD/ - SD/ - ( SMT.ASHA VIJA YARAGHAVAN ) (ABRAHAM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER E KSRINIVASULU ,SPS COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGI STRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE