DY. C.I.T., AMRAVATI CIRCLE, AMRAVATI V. RAMESHWAR RATANLAL KARWA(HUF), Mumbai

MA 11/NAG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8354 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-01-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 10-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AGNESH P THOMAS
• Keywords: Tax effect
• Section: 254(2); 13

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL BENCH, NAGPUR (AT E - COURT, PUNE) BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY , JM M .A. NO. 11 / NAG /20 18 (ARISING OUT OF ITA NO. 29 /NAG /20 1 7 ) / ASSESSMENT YEAR : 2010 - 11 THE DEPUTY COMMISSIONER OF INCOME TAX, AMRAVATI CIRCLE, AMRAVATI. .. /APPLICANT / V/S. RAMESHWAR RATANLAL KARWA (HUF), PROP. M/S. ORSON PHARMACEUTICALS, 422/6, MANGALDAS BUILDING, 3 RD FLOOR, KITCHEN GARDEN LANE, MUMBAI, MAHARASHTRA, PIN - 400 002. PAN: AABHR0647B .. / RESPONDENT A SSESSEE BY : NONE REVENUE BY : SMT. AGNESH P. THOMAS / DATE OF HEARING : 17 .01.2020 / DATE OF PRONOUNCEMENT : 21 .01.2020 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY REVENUE U/S. 254(2) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) SEEKING RECALLING ORDER OF TRIBUNAL IN ITA NO.29 / NAG /201 7 DATED 13.07.2018 . 2 M A NO. 11 / NAG /20 1 8 A.Y. 2010 - 11 2 . AT THE TIME OF HEARING THROUGH VIDEO CONFERENCE, NEITHER THE ASSESSEE NOR HIS AUTHORIZED REPRESENTATIVE WAS PRESENT. IT IS APPARENT FROM THE RECORD THAT THE NOTICE OF HEARING WAS DULY SERVED ON THE ASSESSEE. CONSIDERING THE TOTALITY OF FACTS AND CIRCUMSTAN CES, WE PROCEED TO HEAR THE MISCELLANEOUS APPLICATION AFTER RECORDING THE SUBMISSIONS OF THE LD. DR ON RECORD. 3 . THE LD. DR SUBMITTED THAT THE CO - ORDINATE BENCH OF THE TRIBUNAL, NAGPUR HAS DISMISSED THE APPEAL FILED BY THE DEPARTMENT IN ITA NO.29/NAG/ 2017 FOR ASSESSMENT YEAR 2010 - 11 FOR THE REASON THAT THE TAX EFFECT OF AMOUNT DISPUTED IS LESS THAN THE MONETARY LIMIT I.E. RS.50 LAKHS FIXED BY THE CBDT IN CIRCULAR NO.3/2018 DATED 11.07.2018 WHICH IS IN SUPPRESSION OF ITS CIRCULAR NO.21/2015 DATED 10.12. 2015. THE LD. DR ALSO SUBMITTED THAT THE LD. CIT(A), NAGPUR HAS PASSED THE COMBINED ORDER FOR A.Y.2010 - 11 & 2012 - 13 AND IN BOTH THE CASES TAX EFFECT IS AT RS.5,95,630/ - & RS.23,90,620/ - RESPECTIVELY. THE LD. DR FURTHER SUBMITTED THAT WHILE DOING SO, THE CO - ORDINATE BENCH OF THE TRIBUNAL HAS TOTALLY IGNORED PARA 5 OF CBDT IN CIRCULAR NO.3/2018 DATED 11.07.2018 AND THEREFORE, THERE IS A MISTAKE APPARENT FROM RECORD IN THE ABOVE ORDER UNDER REFERENCE OF THE TRIBUNAL WITHIN THE MEANING OF SECTION 254(2) OF TH E ACT. THUS, THE LD. DR PRAYED FOR RECALLING THE ORDER OF TRIBUNAL IN RESPECT OF ITA NO.29/NAG/2017 AND ADJUDICATE UPON THE SAME ON MERITS. 4. WE HAVE PERUSED THE CASE RECORD AND HEARD THE SUBMISSIONS OF THE LD. DR. WE HAVE ALSO PERUSED THE ORDER OF TRIB UNAL DATED 13.07.2018 WHEREIN THE TRIBUNAL IN A CONSOLIDATE MANNER HAS DISMISSED ITA NO.29/NAG/2017 AND OTHERS ON ACCOUNT OF LOW TAX EFFECT. WE HAVE GONE THROUGH THE PARA 5 OF CBDT CIRCULAR NO.3/2018 (SUPRA.) WHEREIN IT IS STATED AS UNDER: 3 M A NO. 11 / NAG /20 1 8 A.Y. 2010 - 11 5. THE ASSESSI NG OFFICER SHALL CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN TH E MONETARY LIMIT SPECIFIED IN PARA 3. IN OTHER WORDS, HENCEFORTH, APPEALS CAN BE FILED ONLY WITH REFERENCE TO THE TAX EFFECT IN THE RELEVANT ASSESSMENT YEAR. HOWEVER, IN CASE OF A COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY, WHICH INVOLVES MOR E THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEALS SHALL BE FILED IN RESPECT OF ALL SUCH ASSESSMENT YEARS EVEN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S), IF IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEEDS THE MONETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. ON PLAIN READING OF THE ABOVE PARA - 5 OF CBDT CIRCULAR NO.3/2018 (SUPRA.), IT IS CRYSTAL CLEAR THAT IN CASE OF A COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY, WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESS MENT YEAR, APPEALS SHALL BE FILED IN RESPECT OF ALL SUCH ASSESSMENT YEARS EVEN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S), IF IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEEDS THE MO NETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY . THEREFORE, IN OUR CONSIDERED VIEW, T HE MISTAKE IS APPARENT FROM RECORD, HENCE, NEEDS RECTIFICATION. ACCORDING LY, THE ORDER DATED 13.07.2018 PASSED BY THE TRIBUNAL ONLY IN RESPECT OF ITA NO.29/NAG/2017 IS HEREBY RECALLED AND THE APPEAL OF THE ASSESSEE IS RESTORED TO ITS ORIGINAL NUMBER. THE REGISTRY IS DIRECTED TO LIST THE APPEAL FOR FRESH HEARING IN DUE COURSE AF TER ISSUING NOTICE OF HEARING TO BOTH THE SIDES. 4 M A NO. 11 / NAG /20 1 8 A.Y. 2010 - 11 5 . IN THE RESULT, MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS ALLOWED . ORDER PRO NOUNCED ON 21ST DAY OF JANUARY, 2020. SD/ - SD/ - D. KARUNAKARA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 21 ST JANUARY, 2020. SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - II, NAGPUR. 4. THE CIT, NAGPUR. 5 . , , / DR, ITAT, NAGPUR. 6. / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 5 M A NO. 11 / NAG /20 1 8 A.Y. 2010 - 11 DATE 1 DRAFT DICTATED ON 20 .01.2020 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 20 .01.2020 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER