ACIT, C-4(1), Chandigarh V. M/s Him Overseas, Chandigarh

MA 47/CHANDI/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4776 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 13-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHOK GOYAL SR DR
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A CHANDIGARH !, ' # . %.. . & , '( # BEFORE: SMT. DIVA SINGH, JM & DR. B.R.R.KUMAR, AM M.A. NO. 47/CHD/2019 IN ./ ITA NO. 823/CHD/2018 / ASSESSMENT YEAR: 2014-15 THE ACIT, CIRCLE 4(1), CHANDIGARH. VS M/S HIM OVERSEAS, PLOT NO. 181/12, INDL. AREA, PHASE-I, CHANDIGARH. ./ PAN NO: AABCA4125G / APPELLANT / RESPONDENT ! / REVENUE BY : SMT. CHANDER KANTA '# ! / ASSESSEE BY : SHRI ASHOK GOYAL, SR.DR $ % #&/ DATE OF HEARING : 08.08.2019 '()* #&/ DATE OF PRONOUNCEMENT : 09.08.2019 ')/ ORDER PER DIVA SINGH BY THE PRESENT MISCELLANEOUS APPLICATION FILED U/S 254(2) OF THE INCOME TAX ACT,1961 THE REVENUE PRAYS FOR RECAL L OF THE ORDER DATED 04.09.2018 IN ITA 823/CHD/2018. 2. PERUSAL OF THE APPLICATION FILED SHOWS THAT THE REV ENUE PLEADS THAT ITS APPEAL WAS DISMISSED ON THE GROUNDS OF TAX EFFECT. IT HAS BEEN ARGUED THAT THE ORDER PASSED BY THE CIT (A) WHICH WAS UNDER CHALLENGE HAD RELIED UPON THE DECISION OF THE HON'BLE HIMACHAL PRADESH HIGH COURT IN THE CASE OF STOVEKRA FT INDIA VS CIT ITA NO. 20 TO 24 OF 2015 WHICH HAD BEEN UPSET I N THE CASE OF M.A. 122&123/CHD/2018 IN ITA 1095&1096/CHD/2016 PAGE 2 OF 3 CIT VS M/S CLASSIC BINDING INDUSTRIES & ORS. IN CIV IL APPEAL NO. 7208 AND OTHERS OF 2018 DATED 20.08.2018 B Y THE APEX COURT. 2. THE LD. AR HAD OBJECTED TO THE MAINTAINABILITY O F THE REVENUES MISCELLANEOUS APPLICATION ON AN EARLIER D ATE I.E. ON 03.05.2019 AND REFERRING TO THE CIRCULAR NO. 320/20 18 DATED 11.07.2018, IT WAS HIS SUBMISSION THAT THERE WAS NO EXCEPTION CARVED OUT ON THE SAID ISSUE AVAILABLE TO THE REVEN UE ON THIS GROUND. 3. HOWEVER, ON THE DATE OF HEARING, THE LD. SR.DR SUBMITTED THAT THE DECISION OF THE APEX COURT IN TH E CASE OF CLASSIC BINDING (SUPRA) HAS BEEN RE-CONSIDERED AND CLARIFIED IN THE CASE OF PCIT SHIMLA VS M/S AARHAM SOFTRONICS & OTHERS IN CIVIL APPEAL NO. 1784 OF 2019 DATED 20.02.2019. ACCORDINGLY, IT WAS HER PRAYER THAT SHE WOULD HAVE NOTHING FURTHER TO ARGUE AND THE MISCELLANEOUS APPLICATION MAY BE TREATED AS NOT PRESSED. 4. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE MA TERIAL AVAILABLE ON RECORD. THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE WAS DISMISSED IN THE IMPUGNED ORDER ON THE FOLLOWING GROUND : 2. THE LD. AR INVITING ATTENTION TO THE DEPARTMEN TAL GROUND SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS ONLY R S.19,75,364/- AND THUS BELOW THE LIMIT OF RS. 20 LACS SET OUT IN PARA 10 OF CBDT CIR CULAR NO. 3/2018 DATED 11.07.2018. CONSEQUENTLY BEING IN VIOLATION OF THE CBDT CIRCULAR IS NOT MAINTAINABLE. M.A. 122&123/CHD/2018 IN ITA 1095&1096/CHD/2016 PAGE 3 OF 3 3. THE LD. SR.DR ON GOING THROUGH THE MATERIAL AVAI LABLE ON RECORD AGREED THAT THE SUBMISSIONS OF THE ASSESSEE ON FACTS ARE C ORRECT. 4. WE HAVE HEARD THE PARTIES AND SEEN THE RECORD. IT IS SEEN THAT THE SAID CIRCULAR IS RETROSPECTIVE IN NATURE. ACCORDINGLY, IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED ON THE GROUNDS OF LOW T AX EFFECT IN TERMS OF THE AFORESAID CIRCULAR OF THE CBDT BY WHICH THE TAX AUT HORITIES ARE BOUND. 5. IN THE MISCELLANEOUS APPLICATION FILED, THE REVE NUE HAS PLACED RELIANCE UPON THE DECISION OF THE APEX COURT IN THE CASE OF M/S CLASSIC BINDING. SAID DECISION, IN ALL FAIRNES S HAS BEEN POINTED OUT BY THE LD. SR.DR HERSELF THAT HAS BEEN CLARIFIED IN THE CASE OF PCIT SHIMLA VS M/S AARHAM SOFTRONICS & OTHE RS (SUPRA). ACCORDINGLY , ACCEPTING THE PRAYER OF THE PARTIES BEFORE THE BENCH, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS DISMISSED AS NOT PRESSED. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 6. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09.08.2019. SD/- SD/- ( . %.. . & ) ( ! ) (DR. B.R.R. KUMAR) (DIVA SINGH) '( #/ ACCOUNTANT MEMBER ' #/ JUDICIAL MEMBER + , (+ #,- .-#/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. $ /#/ CIT 4. $ /# ()/ THE CIT(A) 5. -23 #4, & 4, 67839/ DR, ITAT, CHANDIGARH 6. 38 :%/ GUARD FILE (+ $ / BY ORDER ; / ASSISTANT REGISTRAR ITAT,CHANDIGARH.