ACIT, Ludhiana V. M/s Calcutta Knitwears, Ludhiana

MA 102/CHANDI/2016

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 5610 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 19-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANJIT SINGH
• Keywords: Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER M.A.NO.102/CHD/2016 IN IT(SS)A. NO.20/CHD/2008 (BLOCK PERIOD 1.4.1996 TO 31.3.2002 ) THE A.C.I.T., VS. M/S CALCUTTA KNITWEARS, CIRCLE VII, BINDRABAN ROAD, LUDHIANA. CIVIL LINES, LUDHIANA. PAN: AAAFC6025B (APPELLANT) (RESPONDENT) APPLICANT BY : SHRI MANJIT SINGH, SR.DR RESPONDENT BY : NONE DATE OF HEARING : 03.11.2017 DATE OF PRONOUNCEMENT : 21.12.2017 ORDER PER ANNAPURNA GUPTA, A.M . : THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY TH E REVENUE FOR RECALLING OF THE ORDER OF THE TRIBUNAL DATED 10.05.2016 FOR BLOCK PERIOD 1.4.1996 TO 31.3.2002, WHICH WAS DISMISSED BY THE TRIBUNAL ON THE GROUND THAT TH E TAX EFFECT IN THE APPEAL WAS LESS THAN RS.10 LACS AND A S PER CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015, THE APP EALS WHEREIN THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.10 LACS SHOULD NOT BE FILED BY THE DEPARTMENT. T HE SAID INSTRUCTIONS OF THE CBDT HAVE BEEN MADE APPLICABLE TO THE PENDING APPEALS ALSO 2. NOW THE REVENUE HAS COME UP WITH THE PRESENT MISCELLANEOUS APPLICATION PLEADING THAT THE ASSESSM ENT IN THE PRESENT CASE HAVING BEEN MADE U/S 158BC R.W.S 1 58BD 2 OF THE ACT, THE APPLICABLE TAX RATE ON THE UNDISCL OSED INCOME WAS @60% AND THUS THE TAX EFFECT WAS MORE T HAN 10 LACS. THE MISCELLANEOUS APPLICATION FILED BY THE APPLICAN T READS AS UNDER: MISCELLANEOUS APPLICATION U/S 254(2) ARISING OUT OF HON'BLE ITAT'S ORDER IN ITA NO. 20/CHD/2008 FOR THE BLOCK PERIOD 01.04.1996 TO 31.03.2002 IN THE CASE O F M/S CALCUTTA KNITWEARS, BINDRABAN ROAD, CIVIL LINES , LUDHIANA. ASSESSMENT YEAR/BLOCK PERIOD 01.04.1996 TO 31.03. 2002 THE ACIT, M/S CALCUTTA KNITWEARS, CIRCLE-7, LUDHIANA. BINDRABAN ROAD, CIVIL LINES, LUDHIANA APPELLANT RESPONDENT RESPECTFULLY SUBMITTED THAT ASSESSMENT IN THE ABOVE NOTED CASE WAS MADE VIDE ORDER U/S 158BC R.W.S 158BD OF THE INCOME TAX ACT, 1961 ON 08.02.2008 AT AN INCOME OF RS.21,76,916/-. AGGRIEVED WITH THE ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE CIT(A)-II, LUDHIANA WHO VIDE ITS ORDE R DATED 27.08.2008 ALLOWED PART RELIEF TO THE ASSESSEE. THE APPEAL WAS FILED BY THE DEPARTMENT AGAINST THE ORDER OF LD CIT(A)-II, LUDHIANA DATED _ 27.08.2008 CHALLENGING THE DELETION OF ADDITION OF RS.21,76,916/- MADE ON ACCOUNT OF UNDISCLOSED INCOME. THE HON'BLE ITAT, CHANDIGARH VIDE ITS ORDER DATED 10.05.2016 HAS DISMISSED THE APPEAL OF THE DEPARTMENT IN VIEV OF CBBT'S CIRCULAR NO. 21/2015 DATED 10.05.2016 ON THE GROUNDS THAT TAX EFFECT IN THIS CASE NOT EXCEED THE MONETARY LIMIT OF RS. 10 L ACS REQUIRED FOR FILING APPEALS BEFORE HON'BLE ITAT. IN THIS CONNECTION, THE FOLLOWING FACTS ARE SUBMITTED BEFORE HON'BLE ITAT FOR KIND CONSIDERATIO N. 1. THAT THE TAX CALCULATION OF TAX EFFECT FOR THE BLOCK PERIOD 01.04.1996 TO 31.03.2002 I S AS UNDER :- DISPUTED INCOME ON WHICH APPEAL WAS FILED BEFORE HONBLE 21,76,916 ITAT 3 TAX ON DISPUTED INCOME@60% 13,06,150 ADD SURCHARGE@5% 65, 307 NET TAX EFFECT 13 ,71,457 IN VIEW OF THE ABOVE CALCULATION OF TAX, IT IS CLEAR THAT TAX EFFECT ON THE ADDITION OF 21,76,916/ - IS MORE THAN RS. 10 LACS. HENCE, CIRCULAR NO. 21/2015 DATED 10.12.2015 D:ES NOT APPLY TO THIS CASE. IN VIEW OF THE ABOVE FACTS & CIRCUMSTANCES OF THE CASE, IT IS CLEAR THAT THERE IS A :E APPARENT FROM RECORDS IN HON'BLE ITAT, CHANDIGARH' S ORDER IN ITA NO. 20/CHD/2008 DATED 10.05.2016 WHICH NEEDS TO BE RECTIFIED U/S 254(2) OF I.T.ACT, 1961. H ENCE, IT IS REQUESTED THAT THE HON'BLE ITAT,CHANDIGARH MAY KINDLY BE PLEASED TO RECTIFY THE ORDER PASSED VIDE ITA NO.20/CHD/2008 DATED 10.05.2016 FOR THE BLOCK PERIOD 01.04.1996 TO 31.03.2002 AND DECIDE THE CASE ON MERI TS. IN THIS REGARD, NECESSARY APPROVAL TO FILE MISCELLANEOUS APPLICATION HAS BEEN OBTAINED FROM W ORTHY PR. COMMISSIONER OF INCOME TAX-3, LUDHIANA CONVEYED VIDE LETTER F.NO. PR.CIT-3/LDH/ITAT-2 143/20 16- 17/1975 DAT ED 20.09.2016. THE FOLLOWING DOCUMENTS ARE ENCLOSED HEREWITH : COPY OF ITAT, CHANDIGARH'S ORDER DATED 10.05.2016 IN ITA NO 20/CHD/2008. COPY OF PR. COMMISSIONER OF INCOME TAX-3, LUDHIANA'S F.NO. PR.CIT-3/LDH/I.T.A.T.2143/2016-17/1975 DATED 20.09.2016 GRANTING APPROVAL TO FILE MISCELLANEOUS APPLICATION BEFORE THE HON'BLE ITAT, CHANDIGARH. THE LD.COUNSEL FOR THE ASSESSEE FAIRLY ADMITTED TO THE ABOVE FACTS. IN VIEW OF THE ABOVE, SINCE IT IS AN ADMITTED FACT THAT THE TAX EFFECT IN THE PRESENT APPEAL OF THE REVENUE EXC EEDED 10 LACS, IT WAS CLEARLY NOT COVERED BY THE CBDT CIR CULAR NO.21/2015 DT 10-12-2015,AND ITS DISMISSAL ON ACCOU NT OF THE SAME WAS A CLEAR MISTAKE APPARENT FROM RECORD. WE THEREFORE DIRECT THAT THE ORDER OF THE ITAT IN IT( SS)A NO. 20/CHD/2008 DT.10-05-16 BE RECALLED AND THE APPEAL 4 REFIXED FOR HEARING. THE REGISTRY IS HEREBY DIRECTE D TO FIX THE HEARING OF THE APPEAL IN DUE COURSE ,GIVING INT IMATION OF THE SAME TO BOTH THE PARTIES. IN THE RESULT, MISCELLANEOUS APPLICATIONS FILED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 21 ST DECEMBER, 2017 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH