Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore V. Sri Chandrashekar Bhat , Bangalore

MA 378/BANG/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7207 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-01-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 05-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, BANGALORE BEFORE SHRI. JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER [MP NO. 378/B/2018 (IN ITA NO. 908 /B/201 8 )] (ASSESSMENT YEAR: 20 1 1 - 1 2 ) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), BANGALORE. VS. APPLICANT SHRI. CHANDRASHEKAR BHAT, NO.70, 5 TH CROSS, NARAYANAPPA LAYOUT, R. T. NAGAR, BANGALORE. RESPONDENT REVENUE BY : SHRI. P. SIDDAPPAJJI, ADDL. CIT APPLICANT BY : NONE O R D E R PER JASON P. BOAZ, AM : THIS MISCELLANEOUS APPLICATION (MP) BY REVENUE IS IN RESPECT OF THE TRIBUNALS ORDER IN ITA NO.908/BANG/2017 DATED 03.08.2018FOR ASSESSMENT YEAR 2011-12 WHICH WAS DISMISSED ON GROUNDS THAT THE TAX EFFECT PERTAINING TO THE AMOUNT DISPUTED IS LESS THAN THE MONETARY LIMIT OF RS.20 LAKHS FIXED BY CBDT CIRCULAR NO.3/2018 DATED 11.07.2018 WHICH IS ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO.21/2015 DATED 10.12.2015. SINCE NONE WAS PRESENT FOR THE ASSESSEE, THE MP WAS DISPOSED OFF WITH THE ASSISTANCE OF THE LEARNED DR FOR REVENUE AND THE MATERIAL ON RECORD. DATE OF HEARING : 11 / 01 /201 9 DATE OF PRONOUNCEMENT : 11 / 01 /201 9 [MP NO. 378/B/2018 (IN ITA NO.908/B/2017)] PAGE 2 OF 4 2. IN THIS MP, REVENUE HAS CONTENDED AS UNDER: THE HON'BLE ITAT VIDE ORDER IN ITA NO. 908/BANG/2018 DATED 03.08.2018 HAVE DISMISSED THE REVENUE APPEAL STATING THAT THE TAX EFFECT FOR FILING FURTHER APPEAL BEFORE THE ITAT IN THIS CASE IS BELOW RS. 20 LAKHS AS PER THE BOARD'S CIRCULAR NO. 03/2018 DATED 11.07.2018. HOWEVER, THE TAX EFFECT INVOLVED IN THE CASE IS RS. 23,88,055/- THE COMPUTATION OF TAX EFFECT IS AS BELOW: ASSESSMENT ORDER OGE RETURNED INCOME- RS. 5,85,000 ASSESSED INCOME- RS. 83,85,000 ADD: UNDISCLOSED INVESTMENT RS. LESS: RELIEF ALLOWED BY CIT(A)- RS. 78,00,000 78,00,000 ASSESSED INCOME- RS. 83,85,000 REVISED ASSESSED INCOME- RS. 5,85,000 TAX THEREON- RS. 23,69,500 TAX THEREON- RS. 51,000 ADD: EDU CESS- RS. 71,085 ADD: EDU CESS- RS. 1,530 TOTAL TAX PAYABLE RS. 24,40,585 TOTAL TAX PAYABLE RS. 52,530 THEREFORE, THE TAX EFFECT IS RS. 23,88,055/- [RS. 24,40,585 (-) RS. 52,530]. 2. IT IS REQUESTED THAT THE HON'BLE ITAT MAY ADJUDICATE THE GROUNDS OF APPEAL RAISED IN THE ORIGINAL APPEAL AS THE APPEAL WAS DISMISSED WITHOUT ADJUDICATING ON THE GROUNDS OF APPEAL RAISED AS THE TAX APPEAL INVOLVED IN THIS APPEAL IS ABOVE RS. 20 LAKHS, 3. IN THE ABOVE CIRCUMSTANCES, A MISCELLANEOUS PETITION IS BEING SUBMITTED SEEKING TO RECTIFY THE ORDER FOR A.Y 2011-12 IN CASE OF SRI CHANDRASHEKAR BHAT ON THE FOLLOWING GROUND: 'THE HON'BLE ITAT MAY CONSIDER RECTIFYING THE ORDER FOR A. Y. 2011-12 BY ADJUDICATING THE GROUNDS OF APPEAL RAISED IN THE APPEAL AS THE APPEAL WAS DISMISSED WITHOUT ADJUDICATING ON THE GROUNDS OF APPEAL 3.1 WE HAVE HEARD BOTH PARTIES AND PERUSED AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD, INCLUDING THE TRIBUNALS ORDER IN ITA NO.908/BANG/2017 DATED 03.08.2018; THE SUBMISSIONS OF REVENUE IN THE MP (SUPRA), THE ORDERS OF THE AUTHORITIES BELOW AND THE GROUNDS RAISED BEFORE THE TRIBUNAL BY REVENUE FOR ASSESSMENT YEAR 2011-12. AS CONTENDED BY REVENUE, THE ASSESSEE HAD RETURNED [MP NO. 378/B/2018 (IN ITA NO.908/B/2017)] PAGE 3 OF 4 INCOME OF RS.5,85,000/- FOR ASSESSMENT YEAR 2011-12 AND THE ORDER OF ASSESSMENT WAS CONCLUDED UNDER SECTION 153A R.W.S. 143(3) OF THE ACT VIDE ORDER DATED 24.03.2016, WHEREIN THE ASSESSEES INCOME WAS DETERMINED AT RS.83,85,000/- IN VIEW OF AN ADDITION OF RS.78,00,000/- AS UNDISCLOSED INVESTMENT. ON APPEAL, THE CIT(A)-11, BANGALORE VIDE ORDER DATED 29.12.2017 DELETED THE AFORESAID ADDITION. A PERUSAL OF THE GROUNDS RAISED BY REVENUE BEFORE THE TRIBUNAL IN ITS APPEAL IN ITA NO.908/BANG/2018 CHALLENGES THE ACTION OF THE CIT(A) IN DELETING THE AFORESAID ADDITION OF RS.78,00,000/- BY THE ASSESSING OFFICER (AO). 3.2 IN THIS FACTUAL MATRIX OF THE CASE, AS DISCUSSED ABOVE, IT IS CLEAR THAT AN INADVERTENT MISTAKE HAS CREPT INTO THE ORDER OF THE TRIBUNAL IN ITA NO.908/BANG/2018 FOR ASSESSMENT YEAR 2011-12, WHEREBY REVENUES APPEAL IN THE CASE ON HAND WAS DISMISSED ON THE GROUND THAT THE TAX EFFECT OF THE ISSUE DISPUTED IN THE APPEAL WAS LESS THAN THE MONETARY LIMIT OF RS.20 LAKHS FIXED BY CBDT CIRCULAR NO.3/2018 DATED 11.07.2018; WHEREAS IN FACT THE ISSUE DISPUTED BEING RS.78,00,000/- THE TAX EFFECT THEREOF IS IN EXCESS OF RS.20 LAKHS. WE, THEREFORE, FINDING MERIT IN REVENUES MP, RECALL THE TRIBUNALS ORDER FOR ASSESSMENT YEAR 2011-12 IN THE CASE ON HAND FOR HEARING AND ADJUDICATION ON THE GROUNDS RAISED IN THE APPEAL BEFORE THE TRIBUNAL. 3.3 THE REGISTRY IS DIRECTED TO ISSUE NOTICES FOR HEARING TO BOTH PARTIES IN THE NORMAL COURSE. 4. IN THE RESULT, REVENUES MISCELLANEOUS APPLICATION FOR ASSESSMENT YEAR 2011-12 IS ALLOWED. [MP NO. 378/B/2018 (IN ITA NO.908/B/2017)] PAGE 4 OF 4 ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JANUARY, 2019. SD/- SD/- ( LALIET KUMAR ) (JASON P BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BANGALORE DATED : 11/01/2019 /NS/* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.