ACIT, Central Circle - 1(2), Kolkata, Kolkata V. Shri Ratan Kumar Somani, Kolkata

ITSSA 128/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0433 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 06-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

1 IT (SS) NO . 128/KOL/2017 RATAN KUMAR SOMANI - T.E IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, KOLKATA BEFORE: SHRI M. BALAGANESH , ACCOUNTANT MEMBER , AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER IT (SS) NO . 128 / K OL/2017 A.Y 20 1 1 - 12 A.C.I.T, C.C 1(2) VS. RA TAN KUMAR SOMANI KOLKATA PAN: AJWPS3192E (APPELLANT) (RESPONDENT) APPEARANCES BY : SHRI A.K TIWARI, CIT DR), LD.SR. DR SHRI R.JAIN , FCA, LD. AR DATE OF HE ARING : 1 2 - 09 - 2018 DATE OF PRONOUNCEMENT : 12 - 09 - 2018 O R D E R SHRI S.S. VISWANETHRA RAVI, JM : - THE ABOVE APPEAL BY THE REVENUE AGAINST THE ORDER DT. 12 - 06 - 2017 OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) , 20 , KOLKATA FOR THE A.Y 2011 - 12. 2. SHRI A.K. TIWARI, CIT, LD.DR FILED AN APPLICATION SEEKING ADJOURNMENT , IT WAS SUBMITTED BY THE LD. AR, THE APPEAL BEING LOW TAX EFFECT , WHICH IS NO T MAINTAINABLE IN VIEW OF LATEST CBDT CIRCULAR. THEREFORE, WE REJECT THE AD JOURNMENT APPLICATION. FURTHER, T HE TAX EFFECT IN THIS APPEAL OF REVENUE IS BELOW RS.20 LAKHS AND IT IS NOT MAINTAINABLE IN VIEW OF SAID CBDT CIRCULAR DT. 11 - 07 - 2018. 3 . T HE CBDT HAS ISSUED CIRCULAR NO. 3/2018 DATED 11.07.2018, WHEREBY THE MONETARY LI MITS FOR FILING OF APPEALS BY THE REVENUE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL , HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN INCREASED . THE REVISED MONETARY LIMITS 2 IT (SS) NO . 128/KOL/2017 RATAN KUMAR SOMANI - T.E LAID DOWN IN PARA - 3 OF THIS CIRCULAR AND THE MANNER OF COMPUTING TAX EFFEC T AS LAID DOWN IN PARA - 4 OF THIS CIRCULAR ARE AS FOLLOWS: 3 . HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: SL. NO. APPEALS/SLPS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 20,00,000/ - 2. BEFORE HIGH COURT 50,00,000/ - 3. BEFORE SUPREME COURT 1,00,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRES CRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 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 RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRED TO AS 'DISPUTED ISSUES). FURTHER, 'TAX EFFECT' SHALL BE TAX INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT INC LUDE 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 EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 3. IN PARA - 13 OF THE SAID CIRCULAR IT HAS FURTHER B EEN CLARIFIED THAT THE REVISED MONETARY LIMITS WILL APPLY RETROSPECTIVELY. THE RELEVANT PARA - 13 OF THE CIRCULAR READS THUS: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL AL SO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4 . IN THE PRESENT CASE, THE DISPUTED ADDITION (S) AND TAX THEREON ARE BELOW RS.2 0,00,000/ - . 5 . IN VIEW OF THE ABOVE, THE APPEAL FILED BY THE REVENUE IS DISMISSED AS NOT MAINTAINABLE IN VIEW OF LATEST CBDT CIRCULAR NO. 3/2018 DT. 11 - 07 - 2018. 6 . IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 - 09 - 2018 SD/ - SD/ - M. BALAGANESH S.S.VISWANETHRA RAVI A CCOUNTANT MEMBER JUDICIAL MEMBER DATED: 12 - 09 - 2018 3 IT (SS) NO . 128/KOL/2017 RATAN KUMAR SOMANI - T.E 1. THE APPELLANT/ REVENUE: THE ACIT, C.C 1(2), ROOM NO. 310, AAYKAR BHAWAN POORVA, 110 SHA NTI PALLY, KOLKATA - 107. 2 . THE RESPONDENT/ ASSESSEE: SHRI RATAN KUMAR SOMANI 143/1/1 COTTON STREET, KOLKATA. 3. CIT 4. CIT(A) , 2 0 , KOLKATA 5. THE DEPARTMENTAL REPRESENTATIVE 6. GUARD FILE TRUE COPY BY ORDER SR.PS/H.O.O ITAT KOLKATA * PRADIP SPS COPY OF THE ORDER FORWARDED TO: -