The ACIT, Junagadh Circle, Junagadh V. M/s Sailganga EU Exports, Veraval

MA 39/RJT/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4788 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 11 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-04-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 10-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, राजकोट 瀈यायपीठ 瀈यायपीठ瀈यायपीठ 瀈यायपीठ, , , , राजकोट IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND T.R. SENTHIL KUMAR, JUDICIAL MEMBER M.A. NO.39/RJT/2019 WITH ITA No.116/RJT/2018 Assessment Year :2015-16 ACIT, Junagadh Circle Circle. Vs M/s.Sailganga EU Exports PAN : ABHFS 2648 N Veraval Kodinar Road Veraval. (Applicant) (Responent) Revenue by : Shri S.S. Rathi, Sr.DR Assessee by : Shri Mehul Ranpura, AR स ु नवाई क तार ख/D a t e o f H e a r i n g : 0 1 / 0 4 / 2 0 2 2 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 0 8 / 0 4 / 2 0 2 2 आदेश/O R D E R PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER Present Misc. Application is filed at the instance of the Revenue pointing out apparent error qua the present assessee passed in a consolidated order of Tribunal dated 30.7.2018 in a bunch of cases disposed of vide ITA No.396/RJT/2015 and 181 others. 2. It is pleaded by the Revenue in the application that in the impugned common order, the appeal of the Revenue was dismissed on the ground that tax effect by virtue of relief given by the ld.CIT(A) was less than the monetary limit prescribed by the CBDT Instruction MA No.39/RJT/2019 with ITA 2 no.03/2018 dated 11.7.2018 i.e. Rs.20 lakhs, hence, the appeal of the Revenue is not maintainable. However, in the present case, the ld.CIT(A)-11, Ahmedabad vide his composite order for A.Y.2013-14 to 2015-16 partly allowed the appeal of the assessee. The Tax effect involved for A.Y.2014-15 in respect of common issue is Rs.43,02,856/-, wherein the appeal is filed vide IT(SS)A.No.51/Rjt/2018 on 23.3.2018 which is pending. Therefore, even though the tax effect for A.Y.2015-16 is below the prescribe limit, in view of para-5 of the CBDT Circular No.03/2018, composite order of CIT(A) for A.Y.2013-14 to 2015-16 and pending appeal of A.Y.2014-15, the appeal for A.Y.2015-16 ought not to have been dismissed on the ground of being tax effect below the prescribed limit. 3. After going through the pleadings of the Revenue in the MA, we find that the ITAT in special drive to dispose of cases where tax effect in the appeals filed by the Revenue is below Rs.20 lakhs as per CBDT circular no.3 of 2018 dated 11.7.2018, the Tribunal had disposed of as many as 181 appeals vide order dated 30.7.2018 impugned by the Revenue. In this bunch of appeals also included the present appeal. It is the contention of the Revenue that the Revenue is challenging a composite order of the ld.CIT(A) passed for the Asstt.Years 2013-14 to 2015-16, and the tax effect involved for the Asstt.Year 2014-15 is Rs.43,02,856/- against which appeal is already pending before the Tribunal, therefore, though the tax effect for the year under consideration below the prescribed monetary limit, in view of para-5 of CBDT Circular No.03/2018 appeal for the Asstt.Year 2015-16 (under consideration) ought not to have been dismissed on the ground of being tax effect below the prescribe limit. A perusal of para-5 of the above CBDT Circular, we find that this Instruction provides an explanation that in case of a composite order MA No.39/RJT/2019 with ITA 3 of any High Court or appellate authority, which involves more than one assessment year and common issues in more than one assessment year, appeals shall be filed in respect of all such assessment years even if the tax effect is less than the prescribed monetary limits in any of the year(s), if it is decided to file appeal in respect of the year(s) in which tax effect exceeds the monetary limit prescribed. 4. Revenue is correct in observing that as per CBDT Circular No.3 of 2018 in the case of composite order of an appellate authority, in any of the year where the tax effect is less than the prescribed monetary limit, the same cannot be withdrawn as per the above circular. Therefore, disposal of the above appeal by the Tribunal on 30.7.2018 in ITA.No.116/RJT/2018 is an oversight mistake which requires rectification. Therefore, we recall the impugned order dated 30.7.2018 in ITA.No.116/RJT/2018 and proceed to decide the same with the consent of both the parties. ITA No.116/RJT/2018 (Asstt.Year 2015-16) 5. At the outset, the ld.counsel for the assessee brought to our notice circular no.17 of 2019 dated 8.8.2019 issued by the CBDT superseding circular No.3 of 2018 dated 11.7.2018 thereby enhancing monetary limit for filing of the appeals by the department before various appellate forums. Para-2 and 3 of the circular reads as under: “The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal shall be filed in respect of an MA No.39/RJT/2019 with ITA 4 assessment year or years in which the tax effect is less than the monetary limit. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. 6. Following the latest circular no.17 of 2019, which superseded Cir.No.3 of 2018 we hold that present appeal filed by the Revenue is not maintainable, as tax effect in this appeal is NIL. Thus, Revenue’s appeal is dismissed as per the new low tax effect circular no.17 of 2019. It is further informed that IT(SS)A.No.51/RJT/2018 for A.Y.2014-15 wherein tax effect was Rs.43,02,856/- was also dismissed by the Co-ordinate Bench on 20.8.2019 following the new Cir.No.17 of 2019. 7. In the result, Revenue’s Misc. Application is allowed and the Revenue appeal is dismissed due to circular no.17 of 2019, as low tax effect. Order pronounced in the Court on 8 th April, 2022 at Ahmedabad. Sd/- Sd/- (ANNAPURNA GUPTA) ACCOUNTANT MEMBER (T.R. SENTHIL KUMAR) JUDICIAL MEMBER Ahmedabad, dated 8/04/2022