DCIT, Central Circle - 1(4), Kolkata, Kolkata V. M/s. Hindusthan Engineering & Industries Ltd., , Kolkata

ITSSA 153/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0432 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 31-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

I.T.(SS )A. NO 153/KOL/2017 ASSESSMENT YEAR: 2012- 2013 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER & SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.(SS)A. NO. 153/KOL/2017 ASSESSMENT YEAR: 2012-2013 DEPUTY COMMISSIONER OF INCOME TAX,................. ............................APPELLANT CENTRAL CIRCLE-1(4), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTI PALLY, KOLKATA-700 107 -VS.- M/S. HINDUSTHAN ENGINEERING & INDUSTRIES LTD.,..... ...................RESPONDENT MODY BUILDING, 27, R.N. MUKHERJEE ROAD, KOLKATA-700001 [PAN: AAACH 8505 Q] APPEARANCES BY: SHRI A.K. TIWARI, CIT, D.R. , FOR THE DEPARTMENT N O N E, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : SEPTEMBER 17, 201 8 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 17, 2018 O R D E R PER SHRI P.M. JAGTAP, A.M. : THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-20, KOLKATA DA TED 01.08.2017 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DELETION BY THE LD. CIT(APPEALS) OF THE ADDITION OF RS.30,72,281/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DISALLOWANCE OF BELATED PAYME NT OF EMPLOYEES CONTRIBUTION TOWARDS PROVIDENT FUND. 2. AT THE TIME OF HEARING FIXED TODAY IN THIS CASE, NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. IT IS, HOWEVER, NOTED TH AT THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS LESS THAN THE REVI SED MONETARY LIMIT OF I.T.(SS )A. NO 153/KOL/2017 ASSESSMENT YEAR: 2012- 2013 PAGE 2 OF 3 RS.20 LAKHS FIXED BY THE CBDT FOR FILING THE APPEAL OF THE REVENUE BEFORE THE TRIBUNAL AND THIS POSITION CLEARLY APPARENT FRO M THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL IS NOT DISPUTED EVEN BY THE LD. D.R. THE RELEVANT PORTION OF THE SAID CIRCULAR NO. 3/2018 DA TED 11.07.2018 AS UNDER:- 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 ME RELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. F ILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE, 'TAX EFFECT' MEANS THE DIFFERENC E BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGE ABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPE CT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFE RRED TO AS 'DISPUTED ISSUES). FURTHER, 'TAX EFFECT' SHALL BE TAX INCLUDING APPLICAB LE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF IN TEREST 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 NOT IONAL 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. ON PERUSAL OF THE CIRCULAR NO. 3/2018 DATED 11.0 7.2018 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 HE REVENUES APPEAL DESERVES TO BE I.T.(SS )A. NO 153/KOL/2017 ASSESSMENT YEAR: 2012- 2013 PAGE 3 OF 3 DISMISSED IN TERMS OF LOW TAX EFFECT. WE MAKE IT CL EAR THAT IT SHALL BE VERY MUCH OPEN FOR THE REVENUE TO SEEK NECESSARY RECTIFICATION IN CASE IT IS FOUND THAT THIS APPEAL INVOLVES OPERATIONS OF EXCEPTION CLAUSES IN THE TAX EFFECT C IRCULAR AS PER LAW. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON SEPTEMBER 17, 2018. SD/- SD/- (SATBEER SINGH GODARA) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 17 TH DAY OF SEPTEMBER, 2018 COPIES TO : (1) DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTI PALLY, KOLKATA-700 107 (2) M/S. HINDUSTHAN ENGINEERING & INDUSTRIES LTD., MODY BUILDING, 27, R.N. MUKHERJEE ROAD, KOLKATA-700001 (3) COMMISSIONER OF INCOME TAX (APPEALS)-20, KOLK ATA, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/D.D.O. INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.