DCIT, Circle - 1(1), KOLKATA, Kolkata V. M/s Cheviot Company Ltd., Kolkata

MA 6/KOL/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6256 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 11-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

1 MA NO.6/KOL/2018 CHEVIOT CO. LTD.., AY- 2010-11 , A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA ( ) BEFORE . . , /AND . , ) [BEFORE SHRI A. T. VARKEY, JM & SHRI M.BALAGANESH, AM] MA NO. 6/KOL/2018 IN I.T.A. NO. 344/KOL/2015 ASSESSMENT YEAR: 2010-11 DEPUTY COMMISSIONER OF INCOME- TAX, CIRCLE-1(1), KOLKATA. VS. M/S. CHEVIOT COMPANY LTD. (PAN: AABCC2380H) APPLICANT RESPONDENT DATE OF HEARING 23.02.2018 DATE OF PRONOUNCEMENT 28.03.2018 FOR THE APPLICANT SHRI ARINDAM BHATTACHARJEE, ADDL. CIT FOR THE RESPONDENT SHRI M. TIWARI, FCA ORDER PER SHRI A.T.VARKEY, JM VIDE THIS MISC. APPLICATION THE REVENUE WANTS US TO RECALL OUR ORDER PASSED ON 20.09.2017 IN ITA NO. 344/KOL/2015. 2. AT THE OUTSET ITSELF, LD. DR SUBMITTED THAT H ONBLE ITAT DISMISSED THE APPEAL FILED BY THE REVENUE ON THE GROUND THAT THE TAX EFFECT IN VOLVED IN THIS APPEAL OF REVENUE IS RS.9,54,720/- WHICH IS LESS THAN RS. TEN LAKHS FOLL OWING THE CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015. HOWEVER IN THIS CASE, THE HONBL E ITAT HAS CALCULATED THE RELIEF OF AMOUNT ALLOWED BY THE LD. CIT(A), WHERE THE TAX EFF ECT IS RS.9,54,720/- (TAX 30% + EC 3%) AGAINST THE RELIEF OF RS.30,89,716/-. WHILE GI VING THE EFFECT OF THE APPELLATE ORDER DATED 31.12.2014, THE REVISED TOTAL INCOME STANDS A T RS.15,30,34,644/-, WHERE THE SURCHARGE OF 10% TO BE ADDED WHILE CALCULATING THE TAX. ACCO RDING TO HIM, THE HONBLE ITAT HAD ERRED IN CALCULATING THE TAX EFFECT BY NOT CONSIDER ING THE SURCHARGE OF 10% ON RS.30,89,716/-. ON THE ABOVE BACKDROP OF THE MATTE R, HE REQUESTED THE BENCH TO RECALL THE ORDER PASSED ON 20.09.2017 AND ADJUDICATE UPON THE GROUNDS TAKEN BY THE REVENUE ON MERIT. 3. ON THE OTHER HAND, THE LD. AR WHILE SUPPORTING T HE ORDER OF THE TRIBUNAL, SUBMITTED THAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF ITAT MUMBAI BENCH IN ITA NO. 2480/MUM/2012 IN DCIT VS. M/S. DOME BELL ELECTRONIC S INDIA LTD. FOR AY 2007-08 VIDE 2 MA NO.6/KOL/2018 CHEVIOT CO. LTD.., AY- 2010-11 ORDER DATED 22.07.2016 WHEREIN IT HAS BEEN HELD THA T SURCHARGE AND EDUCATION CESS SHALL NOT BE INCLUDED IN WORD TAX FOR THE PURPOSE OF EXAMIN ING OF TAX EFFECT AS ENVISAGED IN CIRCULAR OF BOARD DT. 10.12. 2015 NO. 21/2015. HENCE, HE UR GED BEFORE THE BENCH NOT TO ALLOW THE MISC. APPLICATION FILED BY THE REVENUE IN THIS MATT ER. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THE REVENUE HAS FILED THIS MISC. APPLICATION FOR RECALLING THE ORDER OF TRIBUNAL DATED 20.09.2017, WHICH WAS DISMISSED B EING LOW TAX EFFECT I.E. BELOW RS. 10 LAKHS AS PER CBDT CIRCULAR NO. 21/2015, AS ACCORDIN G TO HIM, WHILE CALCULATING THE TAX EFFECT SURCHARGE AND EDUCATION CESS TO BE INCLUDED WITH THE TAX BUT THE TRIBUNAL DID NOT CONSIDER IT WHILE CALCULATING THE TAX EFFECT INVOLV ED IN THIS MATTER. WE FIND THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF ITAT MUMBAI B ENCH IN ITA NO. 2480/MUM/2012 IN DCIT VS. M/S. DOME BELL ELECTRONICS INDIA LTD. FOR AY 2007-08 VIDE ORDER DATED 22.07.2016 WHEREIN IT HAS BEEN HELD THAT SURCHARGE AND EDUCATION CESS SHALL NOT BE INCLUDED IN WORD TAX FOR THE PURPOSE OF EXAMINING OF TAX E FFECT AS ENVISAGED IN CIRCULAR OF BOARD DT. 10.12. 2015 NO. 21/2015. RESPECTFULLY FOLLOWIN G THE SAID DECISION, WE ARE OF THE VIEW THAT THE MISC. APPLICATION FILED BY THE REVENUE IS NOT MAINTAINABLE AND, THEREFORE, THE SAME IS HEREBY DISMISSED. 5. IN THE RESULT, THE MISC. APPLICATION OF REVENUE IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 28TH MARCH , 2018. SD/- SD/- (M. BALAGANESH) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28TH MARCH, 2018 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT DCIT, CIRCLE-1(1), KOLKATA. 2 RESPONDENT M/S. CHEVIOT COMPANY LTD., 24, MAGMA HOUSE, PARK STREET, KOLKATA-16. 3. THE CIT(A) KOLKATA 4. 5. CIT KOLKATA DR, ITAT, KOLKATA. / TRUE COPY, BY ORDER, SR. PVT. SECRETARY