DCIT, CIR-7, KOLKATA, Kolkata V. M/s Indian Financial Journals Pvt. Ltd., Kolkata

MA 107/KOL/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4533 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 13-10-2015
• Court: TRIBUNAL
• Department Lawyers: RJAT KUMAR KUREEL
• Assessee Lawyers: M SATNALIWALA
• Keywords: Tax effect

Judgement Text

1 M.A.NO.107/KOL/2015 A/O ITA NO.1604/KOL/2014-A.Y.20 05-06 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C KOL KATA [BEFORE HONBLE SHRI N.V.VASUDEVAN, JM & SHRI M.B ALAGANESH, AM ] M.A.NO.107/KOL/2015 A/O ITA NO.1604/KOL/2014 ASSESSMENT YEAR : 2005-06 D.C.I.T., CIRCLE-7, -VERSUS- M/S. INDIAN FINANCIA L JOURNALS P.LTD. KOLKATA KOLKATA (PAN:AAACI 5976 J) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI RJAT KUMAR KUREEL, JCIT FOR THE RESPONDENT: SHRI M.SATNALIWALA, AR DATE OF HEARING : 08.07.2016. DATE OF PRONOUNCEMENT : 08.07.2016. ORDER PER N.V.VASUDEVAN, JM: THIS IS A MISCELLANEOUS APPLICATION FILED BY THE R EVENUE U/S 254 (2) OF THE ACT PRAYING FOR RECALLING OF THE AFORESAID ORDER O F THE TRIBUNAL DATED 09.07.2015 ON THE GROUND THAT IT SUFFERS FROM A MISTAKE APPARENT IN THE FACE OF THE RECORD. 2 IT HAS BEEN POINTED OUT IN THE MISCELLANEOUS AP PLICATION THAT THE TRIBUNAL DISMISSED THE APPEAL OF THE REVENUE BY OBSERVING T HAT THE TAX EFFECT IN THE APPEAL WAS LESS THAN RS.4 LAKHS AND THEREFORE AS PER THE CBDT INSTRUCTION NO.5/2014 DATED 10.07.2014 THE APPEAL OF THE REVENUE WAS NOT MAINTA INABLE AS IT WAS BELOW THE MONETARY LIMIT PRESCRIBED UNDER THE INSTRUCTION REF ERRED TO ABOVE FOR FILING THE APPEALS BEFORE THE TRIBUNAL. IN THIS MISCELLANEOUS APPLICA TION THE REVENUE HAS POINTED OUT THAT THE TAX EFFECT IN THE APPEAL BY THE REVENUE WA S RS.4,60,795/- AND THEREFORE THE APPEAL OF THE REVENUE OUGHT TO HAVE BEEN DECIDED ON MERITS AND OUGHT NOT TO HAVE DISMISSED ON THE GROUND THAT THE APPEAL WAS NOT MAI NTAINABLE FOR LOW TAX EFFECT. 3. WE HAVE HEARD THE SUBMISSIONS OF THE LD. DR AND THE LD. COUNSEL FOR THE ASSESSEE. EVEN ASSUMING THAT THE TAX EFFECT IN THE PRESENT APPEAL IS MORE THAN RS.4,00,000 AND THEREFORE THE FILING OF THE APPEAL BY THE REVENUE IS NOT CONTRARY TO THE CBDT INSTRUCTION NO.5/2014, NEVERTHELESS RECENTLY T HE CBDT VIDE CIRCULAR 2 M.A.NO.107/KOL/2015 A/O ITA NO.1604/KOL/2014-A.Y.20 05-06 NO.21/2015, DATED 10TH DECEMBER, 2015, HAS INCREASE D THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPE LLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT. THE REVISED MONETA RY LIMITS 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 I N CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - SL. NO. APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/- 2. BEFORE HIGH COURT 20,00,000/- 3. BEFORE SUPREME COURT 25,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILIN G OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE, 'TAX EFFECT' MEANS THE DIFFERE NCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CH ARGEABLE 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 'D ISPUTED 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 T HE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RE TURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX O N 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. 4. IN PARA-10 OF THE SAID CIRCULAR IT HAS FURTHER BEEN CLARIFIED THAT THE REVISED MONETARY LIMITS WILL APPLY RETROSPECTIVELY. THE RE LEVANT PARA-10 OF THE CIRCULAR READS THUS: 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3 M.A.NO.107/KOL/2015 A/O ITA NO.1604/KOL/2014-A.Y.20 05-06 5. IN THE PRESENT CASE, THE TAX EFFECT IN THIS AP PEAL BY THE REVENUE IS ADMITTEDLY LESS THAN RS.10,00,000/-. THOUGH THIS APPEAL HAD B EEN FILED BY THE REVENUE PRIOR TO THE ISSUE OF THE CIRCULAR OF THE CBDT AND WAS WITHI N THE MONETARY LIMIT IN THE FORM OF TAX EFFECT FOR FILING APPEALS BEFORE TRIBUNAL, W HEN THE APPEAL WAS FILED, IN VIEW OF PARA-10 OF THE CIRCULAR OF CBDT, EVEN SUCH APPEALS WILL BE GOVERNED BY THE NEW MONETARY LIMITS LAID DOWN IN THE CBDT CIRCULAR NO.2 1/2015 REFERRED TO ABOVE. CONSEQUENTLY, THE APPEAL FILED BY THE REVENUE WOULD NOT BE MAINTAINABLE AS IT WOULD BE CONTRARY TO CIRCULAR NO.21/2015. 6. IN VIEW OF THE AFORESAID CIRCULAR THE APPEAL OF THE REVENUE EVEN IF RESTORED ON THE BASIS OF THIS MISCELLANEOUS APPLICATION WILL HAVE T O BE DISMISSED AS THE TAX EFFECT IN THE PRESENT APPEAL IS ADMITTEDLY LESS THAN RS.10 LA KHS. IN VIEW OF THE ABOVE, WE ARE OF THE VIEW THAT THERE IS NO MERIT IN THE MISCELLANEOU S APPLICATION FILED BY THE REVENUE. ACCORDINGLY THE SAME IS DISMISSED. 7. IN THE RESULT THE MISCELLANEOUS APPLICATION OF THE REVENUE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON 08.07.2016. SD/- SD/- [M.BALAGANESH ] [ N.V.VASUDEVAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 08.07.2016. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.M.S, INDIAN FINANCIAL JOURNALS PVT. LTD. 6/2, MOI RA STREET, KOLKATA-700017. 2. D.C.I.T., CIRCLE-7, KOLKATA 3. CIT(A)-VI, KOLKATA 4. CIT-III, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, ASST. REGISTRAR, ITAT, KOLKATA BENCHES 4 M.A.NO.107/KOL/2015 A/O ITA NO.1604/KOL/2014-A.Y.20 05-06