DCIT,Central Circle-XXI, Kolkata, Kolkata V. M/s Teage Ltd., Kolkata

MA 162/KOL/2016

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6101 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2001-2002
• Appeal Filed On: 21-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARINDAM BHATTACHARYA
• Keywords: Tax effect
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA B BENCH, KOLKATA [BEFORE SRI N.V. VASUDEVAN , HONBLE JUDICIAL M EMBER & SRI M. BALAGANESH , HONBLE ACCOUNTANT MEMBER ] M.A. NO. 1 6 2/KOL/201 6 A/O I.T.A. NO. 2582 /KOL/201 3 ASSESSMENT YEAR: 20 0 1 - 02 DCIT, CENTRAL CIRCLE - XXI, KOLKATA.. .. ... APPELLANT CC - XXI, AAYKAR BHAWAN POORVA 5 TH FLOOR 110, SHANTIPALLY KOLKATA 700 107 M/S. TEAGE LTDRESPONDENT UNIT NO. CGE 9/1, LOWER RAWDON STREET KOLKATA 700 020 [PAN : AAACT 9750 D ] APPEARANCES BY: NONE , APPEAR ED ON BEHALF OF THE ASSESSEE. SHRI ARINDAM BHATTACHARYA , ADDL. CIT , DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JANUARY 12 TH , 201 8 DATE OF PRONOUNCING THE ORDER : JANUARY 12 TH , 201 8 O R D E R PER M. BALAGANESH, AM : - BY VIRTUE OF THIS MISCELLANEOUS APPLICATION, THE REVENUE SEEKS TO RECALL THIS ORDER PASSED BY THE TRIBUNAL IN I.T.A. NO. 2582/KOL/2013, DT. 26/05/2016. 2. THIS TRIBUNAL HAD DISMISSED THE APPEAL OF THE REVENUE DUE TO LOW TAX EFFECT BY PLACING RELIANCE ON THE CBDT CIRCULAR NO. 21/2015, DT. 10/12/2015. IN THIS MISCELLANEOUS APPLICATION, THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: - 1. WHETHER SECTION 71(2) GI VES OPTION TO THE ASSESSEE TO CARRY FORWARD BUSINESS LOSS SEPARATELY WITHOUT SETTING OFF SUCH LOSS AGAINST INCOME ARISING OUT OF CAPITAL GAIN 2. WHETHER THE ITAT IS CORRECT IN NOT DECIDING THE ISSUE ON MERIT BY OBSERVING THAT TAX EFFECT IS BELOW THE LIMIT PRESCRIBED IN CBDTS 2 M.A. NO. 102/KOL/2017 A/O I.T.A. NO. 1911/KOL/2016 ASSESSMENT YEAR: 2007 - 08 MONIMOY GOPE CIRCULAR NO.21/2015 DATED 10.12.2015 WHEN THE CASE IS FALLING UNDER THE EXCEPTIONAL CATEGORY MENTIONED IN PARA 8(C) OF THE SAID CIRCULAR WHERE MONETARY LIMIT IS NOT APPLICABLE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. 3.1. WE HAV E HEARD THE LD. D/R. WE FIND THAT THE LD. ASSESSING OFFICER HAD GIVEN THE SET OFF OF BROUGHT FORWARD CAPITAL LOSSES OF RS.20,92,048/ - , W I T H THE CAPITAL GAINS ASSESSED DURING THE YEAR UNDER APPEAL THEREBY DETERMINING THE CAPITAL GAINS AT RS. - NIL - , IN THE AS SESSMENT PROCEEDINGS COMPLETED U/S 143(3) OF THE ACT, ON 31/03/2004. LATER, THIS ASSESSMENT WAS SUBJECTED TO RECTIFICATION PROCEEDINGS U/S 154 OF THE ACT, ON 27/08/2007, WHEREIN, THE SET OFF OF BROUGHT FORWARD CAPITAL LOSSES OF RS.20,92,048/ - , WAS WITHDRAW N BY THE LD. ASSESSING OFFICER. AGAINST THIS SECTION 154 ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO DISPOSED OFF THE APPEAL VIDE H IS ORDER DT. 24/07/2013, GRANTING RELIEF TO THE ASSESSEE IN THIS REGARD. AGGRIEVED THE REVENUE CAME UP IN APPEAL BEFORE THIS TRIBUNAL. 3.1.1. HENCE, IT CAN BE SEEN THAT THE DISPUTED AMOUNT IN THE REVENUE APPEAL WAS ONLY RS.20,92,048/ - , BEING THE AMOUNT OF BROUGHT FORWARD CAPITAL LOSSES, WHICH WAS SET OFF AGAINST THE CAPITAL GAIN, ON WHICH THE TAX EFFECT I S LESS THAN RS.10 LAKHS. ACCORDINGLY, THE REVENUES APPEAL WOULD BE SQUARELY COVERED BY THE CBDT CIRCULAR NO. 21/2015, DT. 10/12/2015. AT THE TIME OF HEARING THE LD. D/R, WAS NOT ABLE TO POINT OUT EXCEPTIONS MENTIONED IN PARA 8C OF THE SAID CIRCULAR AND IT S APPLICABILITY TO THE FACTS OF THE INSTANT CASE , T HOUGH A SPECIFIC GROUND HAS BEEN RAISED BY THE REVENUE, IN THIS REGARD. ACCORDINGLY, WE DO NOT FIND ANY MERIT IN THIS MISCELLANEOUS APPLICATION, PREFERRED BY THE REVENUE. 4. IN THE RESULT, THIS MISCELLANEOUS APPLICATION PREFERRED BY THE REVENUE IS DISMISSED. KOLKATA, THE 1 2 T H DAY OF JANUARY , 201 8 . S D / - S D / - [ N.V. VASUDEVAN ] [ M. BALAGANESH ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : . 01 .201 8 {SC SPS} 3 M.A. NO. 102/KOL/2017 A/O I.T.A. NO. 1911/KOL/2016 ASSESSMENT YEAR: 2007 - 08 MONIMOY GOPE COPY OF THE ORDER FORWARDED TO: 1. DCIT, CENTRAL CIRCLE - XXI, KOLKATA CC - XXI, AAYKAR BHAWAN POORVA 5 TH FLOOR 110, SHANTIPALLY KOLKATA 700 107 2. M/S. TEAGE LTD UNIT NO. CGE 9/1, LOWER RAWDON STREET KOLKATA 700 020 3. CIT(A) - 4. CIT - , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/ D.D.O. ITAT, KOLKATA BENCHES