The Income Tax Officer, Ward-1(2), Vijayawada V. Sri Parvathanani Venkata Ratna Kumar, Jaggaiahpet

MA 2/VIZ/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3021 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-08-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 02-06-2022
• Assessment Year: 2009-2010
• Appeal Filed On: 05-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 40(a)(ia)

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणमपीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./M.A.No.02/Viz/2019 (Arising out of I.T.A.No.317/Viz/2016) (ननधधारणवर्ा/ Assessment Year : 2009-10) Income Tax Officer Ward-1(3) Vijayawada Vs. Sri Parvathaneni Venkata Ratna Kumar D.No.6-39, K.V.Temple Street Seetharampuram Jaggaiahpeta, Krishna Dist. [PAN :AKDPP9798D] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri C.Subrahmanyam,AR प्रत्यधथी की ओर से/ Respondent by : Shri S.P.G.Mudaliar, DR सुनवधई की तधरीख/ Date of Hearing : 03.06.2022 घोर्णध की तधरीख/Date of Pronouncement : 30.08.2022 O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : This Miscellaneous Application(M.A.) is filed by the revenue against the order of the Tribunal in ITA No.317/Viz/2016 dated 21.08.2018 for the Assessment Year (A.Y.) 2009-10. 2. The revenue submitted that Hon’ble ITAT vide its common order in the case of Sri Parvathaneni Venkata Ratna Kumari in ITA No.317/Viz/2016 dated 21.08.2018 dismissed the appeals on the ground 2 MA No.02/Viz/2019, A.Y.2009-10 Parvathaneni Venkata Ratna Kumar, Jaggaiahpet that the tax effect pertaining to the amount disputed by the revenue is less than the monetary limit prescribed by the CBDT in Circular No.03/2018 dated 11.07.2018. The Ld.DR relied on the decision of Palam Gas Service Vs. Commissioner of Income Tax [81 Taxmann.com 43]. The Ld.DR further submitted that the dispute regarding the applicability of sec.40(a)(ia) of the Act has reached finality in the decision of Palam Gas Service (supra). The Ld.DR referred to para 10(b) of the CBDT Circular No.17/2019 dated 08.08.2019 which is reproduced below : 10. Adverse judgements relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect : (b) Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires The Ld.DR therefore, submitted that the order pronounced in ITA No.317/VIZ/2016 may be recalled, since it is covered by the above referred circular. 3. The Ld.AR relied on the order of the ITAT. 4. We have heard both the parties, perused the material available on record and the order of the ITAT. We find that even though the decision of Hon’ble Supreme Court in the case of Palam Gas Service (supra) has brought the applicability of section 40(a)(ia) of the Act even to the amounts 3 MA No.02/Viz/2019, A.Y.2009-10 Parvathaneni Venkata Ratna Kumar, Jaggaiahpet which are payable at any time during the previous year, the Ld.DR failed to substantiate, though the appeal in I.T.A.No.317/Viz/2016 was dismissed, based on below tax effect covered by the Board’s Circular 03/2018. The Ld.DR also failed to establish that there is no Board’s order / notification / instruction /circular, where the issue has been held illegal or ultra vires consequent to the decision of Hon’ble Supreme Court in Palam Gas Service (supra). We therefore find no interference in the order passed by the Hon’ble Tribunal and hence dismiss the M.A. filed by the revenue. 5. In the result, Miscellaneous Application filed by the revenue is dismissed. Order Pronounced in open Court on 30 th August,2022. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरुआर.एलरेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBERन्याधयक सदस्य/JUDICIAL MEMBER Dated : 30.08.2022 L.Rama, SPS 4 MA No.02/Viz/2019, A.Y.2009-10 Parvathaneni Venkata Ratna Kumar, Jaggaiahpet आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. रधजस्व/The Revenue –Income Tax Officer, Ward-1(2), Vijayawada 2.ननधधाऩरती/ The Assessee–Sri Parvathaneni Venkata Ratna Kumar, D.No.6- 39, K.V.Temple Street, Seetharampuram, Jaggaiahpeta, Krishna Dist. 3.प्रधानआयकरआयुक्त/ The Principal Commissioner of Income Tax, Vijayawada 4. The Commissioner of Income Tax Appeals, Vijayawada 5.नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम/ DR,ITAT,Visakhapatnam 6.गधर्ाफ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam