THE ITO WARD - 2(1), Rajahmundry V. M/s Tummudi Brothers, Rajahmundry

MA 17/VIZ/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 5139 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 23-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Keywords: Tax effect

Judgement Text

MP NO.17/VIZAG/2016 M/S. TUMMIDI BROTHERS, RAJAHMUNDRY 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER M.P. NO.17/VIZAG/2016 ARISING OUT OF I.T.A.NO.162/VIZAG/2014 ( / ASSESSMENT YEAR: 2009-10) THE ITO, WARD - 2(1), RAJAHMUNDRY VS. M/S. TUMMIDI BROTHERS, RAJAHMUNDRY [PAN: AACFT4422D ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.K. SETHI, DR / RESPONDENT BY : SHRI G.V.N. HARI, AR / DATE OF HEARING : 01.12.2016 / DATE OF PRONOUNCEMENT : 23.12.2016 / O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: THIS MISCELLANEOUS PETITION FILED BY THE REVENUE I S DIRECTED AGAINST ORDER OF THIS TRIBUNAL IN ITA NO.162/VIZAG/2014 DAT ED 22.12.2015. 2. THE TRIBUNAL HAS DISPOSED OF THIS APPEAL FILED B Y THE REVENUE VIDE APPEAL NO.162/VIZAG/2014 BY HOLDING THAT THE APPEAL FILED BY THE MP NO.17/VIZAG/2016 M/S. TUMMIDI BROTHERS, RAJAHMUNDRY 2 REVENUE IN ITA NO.162/VIZAG/2014 IS NOT MAINTAINABL E AS THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN ` 10 LAKHS BY RELIED UPON THE LATEST CIRCULAR ISSUED BY THE CBDT VIDE CIRCULAR NO.21/201 5 DATED 10.12.2015. THE LD. D.R. SUBMITTED THAT THE REVENUE HAS FILED A PPEAL AGAINST RELIEF GIVEN BY THE LD. CIT(A) TOWARDS DISALLOWANCE MADE U /S 36(1)(III) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE AC T') TOWARDS INTEREST ON ADVANCES GIVEN TO PARTNERS OF THE FIRM AND OTHER S FROM OUT OF THE BORROWED FUNDS OF THE FIRM. THE SAID LAPSE IS A RE CURRING ISSUE FOR THE ASSESSMENT YEAR IN QUESTION AS WELL AS IN THE SUBSE QUENT ASSESSMENT YEARS 2010-11 & 2011-12. THOUGH TAX EFFECT INVOLVE D FOR THE ASSESSMENT YEAR 2009-10 IS LESS THAN THE PRESCRIBED LIMIT FOR FILING APPEAL BEFORE THE TRIBUNAL, THE COMBINED TAX EFFECT FOR A PERIOD OF 3 YEARS FROM ASSESSMENT YEAR 2009-10 TO 2011-12 EXCEE DS ` 20 LAKHS. HENCE, THE ITAT OUGHT NOT TO HAVE DISMISSED APPEAL FILED BY THE REVENUE, THEREFORE, IT IS REQUESTED TO RECALL THE O RDER PASSED BY THE TRIBUNAL IN ITA NO.162/VIZAG/2014 DATED 22.12.2015. THE LD. A.R. FOR THE ASSESSEE ON THE OTHER HAND SUBMITTED THAT AS PE R THE CIRCULAR ISSUED BY THE CBDT VIDE CIRCULAR NO.21/2015, THE TAX EFFEC T SHOULD BE CALCULATED SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUE IN THE CASE OF EVERY ASSESSEE. SINC E THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT PRESCRIBED FOR FILING APPEA L BEFORE ITAT, THE MP NO.17/VIZAG/2016 M/S. TUMMIDI BROTHERS, RAJAHMUNDRY 3 APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND ACCORDINGLY, THE TRIBUNAL HAS RIGHTLY DISMISSED APPEAL FILED BY THE REVENUE. 3. HAVING HEARD BOTH THE SIDES AND PERUSED MATERIAL S AVAILABLE ON RECORD, WE FIND THAT THE COORDINATE BENCH VIDE ITS ORDER DATED 22.11.2015 HAS DISMISSED APPEAL FILED BY THE REVENU E AS NOT MAINTAINABLE BY RELIED UPON THE LATEST CIRCULAR ISS UED BY THE CBDT VIDE CIRCULAR NO.21/2015 DATED 10.12.2015. IN THE SAID CIRCULAR, THE CBDT EXPLAINED THE METHOD OF COMPUTATION OF TAX INVOLVED IN THE APPEALS FILED BY THE REVENUE AS PER WHICH THE TAX EFFECT SHALL B E CALCULATED SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE, IF IN THE CASE OF AN AS SESSEE THE DISPUTED ISSUE ARISES IN MORE THAN ONE ASSESSMENT YEAR, APPE AL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH T HE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUE EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA-3. THEREFORE, FROM THE ABOVE READING OF THE CIRCULAR ISSUED BY THE CBDT, IT IS AMPLY CLEAR THAT TAX EFFECT SHOULD BE C ALCULATED FOR EACH ASSESSMENT YEAR SEPARATELY WHETHER THE DISPUTED ISS UES ARISE IN MORE THAN ONE ASSESSMENT YEAR OR NOT UNLESS THE APPELLAT E AUTHORITY HAS PASSED A COMBINED APPELLATE ORDER. IN THIS CASE, T HE FIRST APPELLATE AUTHORITY HAS PASSED SEPARATE ORDER FOR THE ASSESSM ENT YEAR 2009-10 MP NO.17/VIZAG/2016 M/S. TUMMIDI BROTHERS, RAJAHMUNDRY 4 AND AS PER WHICH THE TAX EFFECT INVOLVED IS LESS TH AN ` 10 LAKHS AND ACCORDINGLY THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. THEREFORE, WE ARE OF THE VIEW THAT THERE IS NO MERI T IN THE MISCELLANEOUS PETITION FILED BY THE REVENUE AND HENCE THE MISCELL ANEOUS PETITION FILED BY THE REVENUE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 23 RD DEC16. SD/- SD/- ( . ) ( . ) (V. DURGA RAO) (G. MANJUNATHA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER ! /VISAKHAPATNAM: % /DATED : 23.12.2016 VG/SPS )! *! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO, WARD-2(1), RAJAHMUNDRY 2. / THE RESPONDENT M/S. TUMMIDI BROTHERS, SHOP NO. 173, MGWCC, THADITHOTA, RAJAHMUNDRY 3. + / THE CIT, RAJAHMUNDRY 4. + ( ) / THE CIT (A), VISAKHAPATNAM 5. ! . , . , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // 12 . (SR.PRIVATE SECRETARY) . , ! / ITAT, VISAKHAPATNAM