The I.T.O.Ward3(1)(2), Surat V. The Agriculture Produce Market Committee, Surat

MA 13/SRT/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0012 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 25-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, HON'BLE JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, HON'BLE ACCOUNTANT MEMBER (VIRTUAL HEARING) MISCELLANEOUS APPLICATION NO.13/SRT/2019 (ARISING OUT OF I.T.A NO.3305/AHD/2014) / ASSESSMENT YEAR: 2003-04 THE INCOME TAX OFFICER, WARD-3(2)(2), SURAT. VS. A GRICULTURE PRODUCE MARKET COMMITTEE, SARDAR MARKET, KUMBHARIA SURAT. [PAN: AAALA 0057A] / APPELLANT /RESPONDENT /REVENUE BY MS. ANUPAMA SINGLA SR.DR ASSESSEE BY SH. AKSHAY MODI CA / DATE OF HEARING: 18.12.2020 /PRONOUNCEMENT ON: 18.12.2020 ORDER UNDER SECTION 254(2) OF INCOME-TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS MISCELLANEOUS APPLICATION IS FILED BY THE REVENUE FOR SEEKING RECTIFICATION BY WAY OF RECALL OF THE ORDER DATED 25.02.2019. THE SENIOR DEPARTMENTAL REPRESENTATIVE(DR) FOR THE REVENUE SUBMITS THAT THE APPEAL OF THE REVENUE WAS DISMISSED DUE TO LOW TAX EFFECT IN VIEW OF THE CENTRAL BOARD OF DIRECT TAX (CBDT) CIRCULAR NO.03/2018 DATED 11.07.2018. THE REVENUE WAS GIVEN LIBERTY TO GET THE APPEAL REVIVE IF THE TAX EFFECT IS FOUND TO BE MORE THEN PRESCRIBED LIMIT OF TAX EFFECT OF RS. 20,00,000/-. ON VERIFICATION OF FACTS, IT WAS REVEALED THAT TAX EFFECT IN THE PRESENT CASE IS OF RS. 21,16,738/-. SINCE TAX EFFECT INVOLVED IN THE APPEALS MORE THAN THE MA NO 13/SRT/2019 IN ITA NO. 3305/AHD/2014 AGRICULTURE PRODUCE MARKET COMMITTEE 2 PRESCRIBED LIMIT, THEREFORE, THE ORDER DATED 25.02.2019 IS LIABLE TO BE RECALLED. 2. ON THE OTHER HAND THE LEARNED AUTHORIZED REPRESENTATIVE (AR) FOR THE ASSESSEE SUBMITS THAT THE ASSESSEE BEING INSTRUMENT OF GOVERNMENT IS A LOCAL AUTHORITY AND IS LIABLE TO BE TAX @ 30% AND THUS THE TAX EFFECT INVOLVE IN THE PRESENT CASE IS ONLY RS.18,14,354/-. IN ALTERNATIVE SUBMISSION THE LD. AR FOR THE ASSESSEE FURTHER SUBMITS THAT IN THE LATEST CIRCULAR OF CBDT NO.17/2019, THE MONETARY LIMIT FOR FILING APPEAL BEFORE THE TRIBUNAL IS REVISED TO RS.50 LAKHS, THUS, EVEN IF IT IS PRESUMED THE TAX EFFECT IS MORE THAN RS. 20.00 LAKH, THE RECALLING THE ORDER AND TO DISMISS IT AGAIN WILL BE A FUTILE EXERCISE, THEREFORE, THE APPLICATION ITSELF MAY BE DISMISSED. 3. IN THE REJOINDER SUBMISSIONS THE DR FOR THE REVENUE SUBMITS THAT IN VIEW OF THE LATEST CIRCULAR OF CBDT NO.17/2019 WHEREIN THE MONETARY LIMIT FOR FILING APPEAL BEFORE THE TRIBUNAL IS REVISED TO RS.50 LAKHS, THE BENCH MAY TAKE CALL IN ACCORDANCE WITH LAW. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. REPRESENTATIVE OF THE PARTIES AND PERUSED THE ORDER DATED 25.02.2019 PASSED BY TRIBUNAL. IT IS MATTER OF FACT THAT THIS APPEAL WAS DISMISSED BY TRIBUNAL BY TAKING VIEW THAT THE TAX EFFECT IN THE PRESENT CASE IS LESS THAN THE MONITORY LIMIT OF RS. 20.00 LAKHS PRESCRIBED BY CBDT IN ITS CIRCULAR DATED NO.03/2018 DATED 11.07.2018. BEFORE, US THE DR FOR THE REVENUE SUBMITS THAT TAX EFFECT IS MORE THAN RS. 20.00 LAKH, MA NO 13/SRT/2019 IN ITA NO. 3305/AHD/2014 AGRICULTURE PRODUCE MARKET COMMITTEE 3 ON THE CONTRARY THE LD. AR FOR THE ASSESSEE SUBMITS THAT THE TAX EFFECT IS ONLY RS. 18,14,354/- ONLY. 5. WE NOTE THAT CBDT IN ITS LATEST CIRCULAR DATED NO.17/2019 DATED 08.08.2019, FURTHER ENHANCED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT BY MAKING AMENDMENT TO CIRCULAR 3 OF 2018, FROM RS.20.00 LAKHS TO RS. 50.00 LAKHS. THEREFORE, WE INSTEAD OF GIVING ANY OPINION ABOUT THE RATE OF TAX APPLICABLE ON THE ASSESSEE, ARE OF THE VIEW THAT EVEN IF IT IS CONSIDERED THAT THE TAX EFFECT IN THE PRESENT APPEAL IS MORE THAN RS. 20.00 LAKH, RECALLING OF THE ORDER DATED 25.02.2019 FOR ADJUDICATION AFRESH AND TO DISMISS IT AGAIN, WOULD BE A FUTILE EXERCISE. HENCE, UNDER THE AFORESAID DISCUSSION AND IN VIEW OF THE CBDTS LATEST CIRCULAR DATED NO.17/2019 DATED 08.08.2019, THE APPLICATION FILED BY THE REVENUE HAS BECOME INFRUCTUOUS AND DISMISSED AS SUCH. 6. IN THE RESULT THE MA FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18-12-2020 SD/- SD/- /- (DR. ARJUN LAL SAINI) (PAWAN SINGH) ( /ACCOUNTANT MEMBER) ( /JUDICIAL MEMBER) / SURAT, DATED : 18 TH DEC , 2020 SELF BY AUTHOR COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER // TRUE COPY // / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT