ITO, Ward 14(2), Kolkata V. M/s. B.B.C. Project Services Pvt. Ltd., Kolkata

MA 5/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0164 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-12-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 10-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Keywords: Tax effect
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM M.A. NO.5/KOL/2019 (ARISING OUT OF ./ITA NO.1670/KOL/2016) ( / ASSESSMENT YEAR: 2010-11) ITO, WARD-14(2), KOLKATA VS. M/S B.B.C. PROJECT SERVICES PVT. LTD. 90B, S.P. MUKHERJEE ROAD, KOLKATA-700026. ./ ./PAN/GIR NO. : AACCB 3671 R ( /APPELLANT ) .. ( / RESPONDENT ) ./ITA NO.1670/KOL/2016 ( / ASSESSMENT YEAR: 2010-11) ITO, WARD-14(2), KOLKATA VS. M/S B.B.C. PROJECT SERVICES PVT. LTD. 90B, S.P. MUKHERJEE ROAD, KOLKATA-700026. ./ ./PAN/GIR NO. : AACCB 3671 R ( /APPELLANT ) .. ( / RESPONDENT ) APPELLANT BY : SMT. RANU BISWAS, ADDL. CIT DR RESPONDENT BY : NONE / DATE OF HEARING : 08/11/2019 /DATE OF PRONOUNCEMENT : 31/12/2019 M/S B.B.C. PROJECT SERVICES PVT. LTD. MA NO. 5/KOL/2019 (ARISING OUT OF I.T.A. NO. 1670/KOL/2016) I.T.A. NO. 1670/KOL/2016 A.Y: 2010-11 P PP PA AA AG GG GE EE E | || | 2 22 2 / O R D E R PER DR. A. L. SAINI: THIS IS A MISCELLANEOUS APPLICATION FILED BY THE R EVENUE PRAYING TO RECALL THE ORDER OF THE TRIBUNAL DATED 30/07/2018. 2. THE CASE OF THE REVENUE IN THIS MISCELLANEOUS A PPLICATION IS THAT THE TAX EFFECT IN THIS APPEAL IS MORE THAN THE LIMIT PRESCRIBED BY TH E CBDT THEREFORE, THE ORDER SHOULD BE RECALLED AND SHOULD BE HEARD ON MERITS. 3. WE HAVE HEARD THE LD. D.R. FOR THE REVENUE AND G ONE THROUGH THE MATERIAL AVAILABLE ON RECORD AND WE NOTE THAT THE TAX EFFECT INVOLVED IN THIS REVENUES APPEAL DOES NOT COME IN THE AMBIT OF OLD CBDT CIRCU LAR AND THIS TRIBUNAL HAS DISMISSED THE APPEAL OF THE REVENUE ON ACCOUNT OF T AX EFFECT. SINCE THE AMOUNT INVOLVED IN THE REVENUES APPEAL IS MORE THAN THE T AX EFFECT THEREFORE WE RECALL THE ORDER OF THE TRIBUNAL DATED 30.07.2018. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE REVENUE IS ALLOWED. 5. WITH THE CONSENT OF LD. D.R FOR THE REVENUE, THE APPEAL OF THE REVENUE HAS ALSO HEARD TODAY ITSELF. WE NOTE THAT IN THE EARLIER ORD ER OF THE TRIBUNAL DATED 30.07.2018 WHEN THE DEPARTMENT APPEAL WAS DISMISSED ON ACCOUNT OF TAX EFFECT AT THAT POINT OF TIME THE LIMIT OF TAX EFFECT WAS TO T HE TUNE OF RS. 20,00,000/-. LATER ON, THE CBDT HAS ISSUED ANOTHER CIRCULAR NO. 17/201 9 DATED 08.08.2019 WHEREIN THE TAX EFFECT LIMIT HAS BEEN INCREASED FROM RS. 2 0 LAKH TO RS. 50 LAKH AND THIS APPEAL OF THE REVENUE FALLS IN THE ZONE OF NEW TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019, THEREFO RE, WE ARE OF THE VIEW THAT THIS APPEAL NEEDS TO BE DISMISSED ON ACCOUNT OF TAX EFFE CT CONSIDERING THE NEW CIRCULAR OF THE CBDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2 019. 6. NOW WE SHALL TAKE THE REVENUES APPEAL IN ITA NO . 1670/KOL/2016 FOR A.Y. 2010-11. M/S B.B.C. PROJECT SERVICES PVT. LTD. MA NO. 5/KOL/2019 (ARISING OUT OF I.T.A. NO. 1670/KOL/2016) I.T.A. NO. 1670/KOL/2016 A.Y: 2010-11 P PP PA AA AG GG GE EE E | || | 3 33 3 7. THE CAPTIONED APPEAL FILED BY THE REVENUE, PERTA INING TO ASSESSMENT YEAR 2010- 11, IS DIRECTED AGAINST THE ORDER PASSED BY THE CO MMISSIONER OF INCOME TAX (APPEAL)-4, KOLKATA IN APPEAL NO. 191/CIT(A)-4/WARD -10(2)/KOL/14-15, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY T HE ASSESSING OFFICER U/S 144 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 15/03/2013. 8. 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/- 9. IN THE PRESENT CASE, THE TAX EFFECT BY THE REVE NUE IS LESS THAN RS.50,00,000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 19.08.2016 AND WAS WITHIN 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. 10. 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. M/S B.B.C. PROJECT SERVICES PVT. LTD. MA NO. 5/KOL/2019 (ARISING OUT OF I.T.A. NO. 1670/KOL/2016) I.T.A. NO. 1670/KOL/2016 A.Y: 2010-11 P PP PA AA AG GG GE EE E | || | 4 44 4 THE APPEAL UNDER CONSIDERATION HAS CERTAINLY BEEN F ILED CONTRARY TO THE CIRCULAR ISSUED BY THE CBDT CIRCULAR NO.17 DATED 08.08.2019 11. 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. 12. 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 . 13. IN THE RESULT, THE APPEAL BY THE REVENUE IS D ISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 31.12.20 19. SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 31/12/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. ITO, WARD-14(2), KOLKATA 2. M/S B.B.C PROJECT SERVICES PVT. LTD. 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 M/S B.B.C. PROJECT SERVICES PVT. LTD. MA NO. 5/KOL/2019 (ARISING OUT OF I.T.A. NO. 1670/KOL/2016) I.T.A. NO. 1670/KOL/2016 A.Y: 2010-11 P PP PA AA AG GG GE EE E | || | 5 55 5