Sri Dulal Chandra Saha, Kolkata V. ITO, Ward-2(1), Coochbehar, Coochbehar

MA 233/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8218 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 03-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHRUBAJYOTI ROY
• Assessee Lawyers: P K HIMMATSINGHKA
• Keywords: Reasonable cause; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L. SAINI, AM MA NO.233/KOL/2019 (ARISING OUT OF . / ITA NO. 1945/KOL/2017) ( / ASSESSMENT YEAR:2014-15) SHRI DULAL CHANDRA SAHA SAHEBGANJ ROAD, DINHATA, COOCHBEHAR-736135 VS. ITO, WARD-2(1), COOCHBEHAR ./ ./PAN/GIR NO.: ATKPS 6788 C (APPELLANT) .. (RESPONDENT) . / ITA NO. 1945/KOL/2017) ( / ASSESSMENT YEAR:2014-15) ITO, WARD-2(1), COOCHBEHAR VS. SHRI DULAL CHANDRA SAHA SAHEBGANJ ROAD, DINHATA, COOCHBEHAR-736135 ./ ./PAN/GIR NO.: ATKPS 6788 C (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI P.K. HIMMAT SINGHKA, FCA RESPONDENT BY : SHRI DHRUBAJYOTI ROY, JCIT, SR DR / DATE OF HEARING : 17/01/2020 /DATE OF PRONOUNCEMENT : 22/01/2020 / O R D E R DR. A.L. SAINI, AM: BY WAY OF THIS MISCELLANEOUS APPLICATION FILED B Y THE ASSESSEE, THE ASSESSEE SEEKS TO RECALL THE ORDER OF TRIBUNAL DATED 25/09/2 019. 2. THE CASE OF THE ASSESSEE IN THIS MISCELLANEOUS A PPLICATION IS THAT THE ASSESSEE DID NOT RECEIVE THE NOTICE OF HEARING THEREFORE HE COUL D NOT ATTEND THE HEARING BEFORE SHRI DULAL CHANDRA SAHA MA NO.233/KOL/2019 (ARISING OUT OF ITA NO. 1945/KOL/2017) ITA NO.1945/KOL/2017 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 THIS TRIBUNAL THEREFORE, WE NOTE THAT THE ORDER MAY BE RECALLED. ON THE OTHER HAND, THE LD. D.R. DID NOT HAVE ANY OBJECTION IF THE MA I S RECALLED. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT SINCE THE ASSESSEE DID NOT RECEIVE THE NOTICE OF HEARING THEREFORE, HE COULD NOT APPEAR BEFORE THIS TRIBUNAL ON THE DATE O F HEARING, WE ARE OF THE VIEW THAT THIS IS A REASONABLE CAUSE TO ALLOW THIS MISCE LLANEOUS APPLICATION THEREFORE WE RECALL OUR ORDER DATED 31.08.2018. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ALLOWED 5. WITH THE CONSENT OF BOTH THE PARTIES AT THE TIME OF HEARING THE APPEAL OF THE ASSESSEE IN ITA NO. 1945/KOL/2017 FOR A.Y. 2014-15 HAS BEEN HEARD ON MERITS. WE NOTE THAT THE ASSESSEES APPEAL COMES IN THE AMB IT OF TAX EFFECT OF CBDT CIRCULAR VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 . 6. THE CAPTIONED APPEAL FILED BY THE REVENUE, PERTA INING TO ASSESSMENT YEAR 2014- 15, IS DIRECTED AGAINST THE ORDER PASSED BY THE COM MISSIONER OF INCOME TAX (APPEAL)-JALPAIGURI, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 16/12/2016. 7. RECENTLY THE CBDT HAS ISSUED CIRCULAR NO. 17/201 9 DATED 08.08.2019, WHEREBY THE MONETARY LIMITS FOR FILING OF APPEALS BY THE D EPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN INCREASED AS MEASURE FOR REDUCING LITIGATION. THE REVISED MONETARY LIMITS LAID DOWN IN PARA-2 OF THIS CIRCULAR ARE AS FOLLOWS: 1. BEFORE APPELLATE TRIBUNAL RS. 50,00,000/- 2. BEFORE HIGH COURT RS.1,00,00,000/- 3. BEFORE SUPREME COURT RS. 2,00,00,000/- 8 IN THE PRESENT CASE, THE TAX EFFECT BY THE REVEN UE IS LESS THAN RS.50,00,000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 31/08/2017 AND WAS WITHIN SHRI DULAL CHANDRA SAHA MA NO.233/KOL/2019 (ARISING OUT OF ITA NO. 1945/KOL/2017) ITA NO.1945/KOL/2017 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 THE MONETARY LIMIT IN THE FORM OF TAX EFFECT FOR FI LING APPEALS BEFORE TRIBUNAL, IN VIEW OF THE RECENT CIRCULAR OF CBDT, EVEN SUCH APPE ALS WILL BE GOVERNED BY THE NEW MONETARY LIMITS LAID DOWN IN THE CBDT CIRCULAR NO.17/2019 REFERRED TO ABOVE. 9. IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX CO URT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION L TD. REPORTED IN 267 ITR 272 WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISI ONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID D OWN THAT WHEN A CIRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUND BY IT AND CANNOT BE ALLOWED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY TO THE TERMS OF THE STATUTE. THE APPEAL UNDER CONSIDERATION HAS CERTAINLY BEEN F ILED CONTRARY TO THE CIRCULAR ISSUED BY THE CBDT CIRCULAR NO.17 DATED 08.08.2019 10. IN THE EVENT, THE REVENUE FINDS AT A LATER POIN T OF TIME THAT THE TAX EFFECT IN THE APPEAL IS MORE THAN RS.50 LAKHS OR DESPITE LOW TAX EFFECT THE APPEAL OF THE REVENUE IS MAINTAINABLE, THE REVENUE IS AT LIBERTY TO MOVE THIS TRIBUNAL FOR RECALLING OF THIS ORDER. 11. IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL F ILED BY THE DEPARTMENT, AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), IS CO NTRARY TO THE POLICY DECISION OF THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED IN LIMINE . 12. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 22.01 .2020 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 22/01/2020 ( SB, SR.PS ) SHRI DULAL CHANDRA SAHA MA NO.233/KOL/2019 (ARISING OUT OF ITA NO. 1945/KOL/2017) ITA NO.1945/KOL/2017 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 COPY OF THE ORDER FORWARDED TO: 1. SHRI DULAL CHANDRA SAHA 2. ITO, WARD-2(1), COOCHBEHAR 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES