ITO, WD-42(3), KOLKATA, Kolkata V. Ram Sagar Verma, Kolkata

MA 103/KOL/2015

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6460 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-04-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 30-09-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARINDAM BHATTACHARJEE
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC(B) BE NCH : KOLKATA [BEFORE HONBLE SHRI A.T.VARKEY, JM & SHRI M.BAL AGANESH, AM ] M.A. NO. 103/KOL/2015 (A/O I.T.A NO. 2091/KOL/2013) ASSESSMENT YEAR: 2008-09 ITO, WARD-42(3), KOLKATA -VS.- RAM SAGAR V ERMA [PAN : ACKPV 7764 J ] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI ARINDAM BHATT ACHARJEE, ADDL. CIT FOR THE RESPONDENT : NONE DATE OF HEARING : 06.04.2018 DATE OF PRONOUNCEMENT : 06.04.2018 ORDER PER M.BALAGANESH, AM 1. BY VIRTUE OF THIS MISCELLANEOUS APPLICATION THE REVENUE SEEKS TO BRING TO THE NOTICE OF THIS TRIBUNAL THAT TAX EFFECT INVOLVE D ON THE DISPUTED ADDITIONS BEFORE THIS TRIBUNAL WORKS OUT TO RS. 10,97,559/-. ACCORDINGLY, IT WAS PLEADED THAT THIS TRIBUNAL WHILE DISMISSING APPEAL IN I.T.A . NO. 2091/KOL/2013 DATED 05.06.2015 ON THE GROUND OF LOW TAX EFFECT BY PLACI NG RELIANCE ON THE CBDT INSTRUCTION NO. 5/2014 DATED 10.07.2014 (WHEREIN TH E TAX EFFECT LIMIT WAS RS. 4 LACS.) HAD COMMITTED AN ERROR WARRANTING RECTIFIC ATION U/S 254(2) OF THE ACT. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. 2 MA NO. 103/KOL/2015 (A/O I.T.A NO. 2091/KOL/2013) RAM SAGAR VERMA A.YR.2008-09 2 3. WE HAVE HEARD THE LD. DR AND GONE THROUGH THE MA TERIALS AVAILABLE ON RECORD. WE FIND THAT THE ASSESSEE HAD FILED HIS RET URN OF INCOME ON 30.09.2008 DECLARING NIL INCOME AND CARRY FORWARD LOSS OF RS. 29,30,253/-. THE ASSESSEE HAD COMPLETED U/S 143(3) OF THE ACT ON 31.12.2010 DETERMINING TOTAL INCOME AT RS. 8,07,780/-. IN THE ASSESSMENT, THE LD. AO HA D MADE THE FOLLOWING ADDITIONS WHICH ARE IN DISPUTE BEFORE US: A) TOWARDS GROWING CHARGES RS. 27,36,154/- B) TOWARDS TRANSPORTATION CHARGES RS. 10,21,101/- 4. ON FIRST APPEAL, THE LD. CIT(A) RESTRICTED THE D ISALLOWANCE TOWARDS GROWING CHARGES TO RS. 3,77,000/- AND RESTRICTED THE DISALL OWANCE TOWARDS TRANSPORTATION CHARGES TO RS. 50,000/-. WE FIND THA T THE REVENUE HAD PREFERRED AN APPEAL AGAINST THIS RESTRICTION OF DISALLOWANCE ACTION BY THE LD. CIT(A). IN EFFECT, THE REVENUE WANTED THE ADDITIONS MADE BY TH E LD. AO TO BE SUSTAINED PURSUANT TO PREFERRING AN APPEAL BEFORE US. ADMITTE DLY, THE TOTAL OF DISALLOWANCES CONTESTED BEFORE US AMOUNTS TO RS. 37 ,57,255/- ON WHICH ADMITTEDLY THE TAX EFFECT IS MORE THAN RS. 10LACS. HENCE, EVEN AS PER THE RECENT CIRCULAR NO. 21/2015 DATED 10.12.2015 ISSUED BY CBD T AND HAVING MADE APPLICABLE EVEN FOR PENDING APPEALS WITH RETROSPECT IVE EFFECT, STILL THE TAX EFFECT IS MORE THAN 10 LACS AND THE REVENUE CANNOT BE DISMISSED ON LOW TAX EFFECT. THIS MISTAKE HAS RIGHTLY BEEN POINTED OUT B Y THE LD. DR BEFORE US AND HENCE, WE ARE INCLINED TO ACCEPT THE CONTENTIONS RA ISED BY THE REVENUE IN ITS MISCELLANEOUS APPLICATION. ACCORDINGLY, THE MISCELL ANEOUS APPLICATION OF THE REVENUE DESERVES TO BE ALLOWED. NOW, WE HEREBY DIR ECT THE REGISTRY TO FIX THE MAIN APPEAL FOR HEARING ON 02.05.2018. BOTH THE PAR TIES ARE INFORMED IN THE 3 MA NO. 103/KOL/2015 (A/O I.T.A NO. 2091/KOL/2013) RAM SAGAR VERMA A.YR.2008-09 3 OPEN COURT REGARDING THE SCHEDULED DATE OF HEARING. NO NOTICES WOULD FOLLOW IN THIS REGARD. 5. IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 06.04.2018 SD/- SD/- [A.T.VARKEY] [ M.BALAGANESH] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 06.04.2018 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1.ITO, WARD-42(3), KOLKATA, PODDAR COURT, 4 TH FLOOR, 18, RABINDRA SARANI, KOLKATA- 700001. 2. RAM SAGAR VERMA, 3A/7, B.K.PAUL LANE, DUM DUM, K OLKATA-700030. 3.CIT(A)- 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVA TE SECRETARY HEAD OF OFFICE/ D.D.O., ITAT KOLKATA BENCHE S