ITO, (International Taxation)-1, Ahmedabad V. Institute for Plasma Research, Gandhinagar

MA 80/AHD/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6830 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: misc
• Appeal Filed On: 09-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH SINGH SR DR
• Assessee Lawyers: ANIL R SHAH AR
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER MA NOS.78, 79 AND 80/AHD/2018 (IN ./ IN I.T.A. NOS.1921, 1922 AND 1923/AHD/2017) [ / ASSESSMENT YEARS : 2015-16 (QUARTER -3 RD , 1 ST & 4 TH )] THE INCOME TAX OFFICER (INTERNATIONAL TAXATION)-I 209, 2 ND FLOOR, NAVJEEVAN BLDG ASHRAM ROAD, AHMEABAD / VS. INSTITUTE OF PLASMA RESEARCH BHAT-IPR, BHAT, GANDHINAGAR- 382 428 % ./ ./ PAN/TAN NO. : AAAAI0348C/AHM100497A ( %( / APPLICANT ) .. ( )%( / RESPONDENT ) %(* / APPLICANT BY : SHRI SAURABH SINGH, SR.DR )%( +* / RESPONDENT BY : SHRI ANIL R. SHAH, AR , - + / DATE OF HEARING 15/06/2018 ./01 + / DATE OF PRONOUNCEMENT 05 / 0 7 /201 8 / O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT MISCELLANEOUS APPLICATIONS HAVE BEEN F ILED BEFORE US BY THE REVENUE SEEKING RECTIFICATION OF THE COMBINED ORDER DATED 2 2.12.2017 PASSED IN THREE REVENUES APPEALS BEING ITA NOS.1921/AHD/2017, 1922/AHD/2017 AND 1923/AHD/2017 FOR ASSESSMENT YEAR (AY) 2015-16 (QUARTER 3 RD , 1 ST & 4 TH ) RESPECTIVELY WHEREBY AND WHEREUNDER THE COORDINATE BENCH OF THIS TRIBUNAL WA S PLEASED TO DISMISS THOSE APPEALS IN TERMS OF THE CBDT CIRCULAR NO.21/2015 DATED 10.1 2.2015 ON THE GROUND THAT TAX EFFECT INVOLVED IN THOSE MATTERS WAS LESS THAN RS.1 0,00,000/-. - 2 - MA NOS.78, 79 & 80/AHD/2018 (IN ITA NOS.1921, 1922 & 1923/AHD/17) ITO VS. INSTITUTE OF PLASMA RESEARCH ASST.YEAR 2015-16 2. THE BRIEF FACTS OF THE CASE IS THIS THAT THE CP C RAISED DEMANDS QUARTERLY BASIS FOR THE AY 2015-16 FOR THE SHORT DEDUCTION OF TDS AND CHARGED INTEREST THEREON APPLYING THE RATE OF TDS @20% AS THE RECIPIENT DOES NOT HAVE PAN. THE SEPARATE APPEALS THREE IN NUMBERS PREFERRED BY THE ASSESSEE AGAINST THOSE THREE ORDERS SEPARATELY MADE ON QUARTERLY BASIS BEING THE 1 ST QUARTER, 3 RD QUARTER AND 4 TH QUARTER RELEVANT TO AY 2015-16 WERE ALLOWED BY THE LD. CIT(A) BY AND UNDER THREE S EPARATE ORDERS BEING CIT(A)- 8/240/2015-16 DATED 6.6.2017 (QR.1), CIT(A)-8/241/2 015-16 DATED 6.6.2017 (QR.3) AND CIT(A)-8/242/2015-16 DATED 6.6.2017 (QR.4). 3. BEING AGGRIEVED THE REVENUE HAD PREFERRED THREE APPEALS BEING ITA NO.1921/AHD/2017 FOR QUARTER-3, ITA NO.1922/AHD/201 7 FOR QUARTER-1 AND ITA NO.1923/AHD/2017 FOR QUARTER-4 FOR AY 2015-16. 4. THE LD. ITAT BY A COMMON ORDER DATED 22.12.201 7 DISMISSED THOSE APPEALS PREFERRED BY THE REVENUE ON THE GROUND THAT NET TAX INVOLVED IN EACH CASE OF APPEALS WAS LESS THAN RS.10,00,000/-. WHILE PASSING ORDER, THE LD. TRIBUNAL TOOK INTO CONSIDERATION THE CBDT CIRCULAR BEARING NO.20/2015 DATED 10.12.20 15 WHICH ENVISAGES THAT THE DEPARTMENTS PENDING APPEALS BEFORE THE TRIBUNAL/HI GH COURTS ARE TO BE WITHDRAWN/NOT PRESSED WHERE THE TAX EFFECT IS LESS THAN RS.10,00, 000/-. AGAINST THE SAME THE INSTANT MISCELLANEOUS APPLICATIONS HAVE BEEN PREFERRED BY T HE REVENUE FOR RECALLING OF THE SAME ON THE PREMISE THAT THE LD. TRIBUNAL HAS COMMITTED AN ERROR IN DISMISSING THOSE APPEALS SINCE THE COMBINED TAX EFFECT FOR AY 2015-16 IS MUC H ABOVE RS.10,00,000/- . 5. AT THE TIME OF HEARING OF THE INSTANT APPLICATIO NS, THE LD. DR CONTENDED BEFORE US THAT THOUGH THE TAX EFFECT FOR QUARTERS 1, 3 & 4 FO R THE FY 2014-15 RELEVANT TO AY 2015- 16 SEPARATELY CALCULATED AS RS.4,54,488/-, RS.8,84, 071/- AND RS.3,85,200/- RESPECTIVELY, THE COMBINED TAX EFFECT FOR THE FY 2014-15 RELEVANT TO AY 2015-16 IS RS.17,23,719/- WHICH IS MUCH ABOVE RS.10,00,000/-. THE CBDT CIRCU LAR PROVIDES FOR ASSESSMENT YEAR - 3 - MA NOS.78, 79 & 80/AHD/2018 (IN ITA NOS.1921, 1922 & 1923/AHD/17) ITO VS. INSTITUTE OF PLASMA RESEARCH ASST.YEAR 2015-16 AS A UNIT AND THUS ALL QUARTERS FALLING IN ASSESSME NT YEAR REQUIRES TO BE CLUBBED FOR THE PURPOSES OF APPLICATION OF CIRCULAR. IT WAS CONTEN DED THAT WHILE DISMISSING THOSE APPEALS, THE TRIBUNAL ERRONEOUSLY CONSIDERED THE TAX DEMAND SEPARATELY DETERMINED IN QUARTERLY BASIS FOR THE AY 2015-16. HE FURTHER AD DED THAT THE COMBINED TAX EFFECT I.E. RS.17,23,719/- FOR THE CONCERNED ASSESSMENT YEAR SH OULD HAVE BEEN TAKEN INTO CONSIDERATION FOR THE AY 2015-16 AND THE SAID THR EE APPEALS SHOULD HAVE BEEN ADMITTED FOR ADJUDICATION ON MERITS INSTEAD OF DISMISSING TH E SAME ON LOW TAX EFFECT. IN THAT VIEW OF THE MATTER, THE LD. DR SUBMITTED BEFORE US TO RE CTIFY THE SAID ORDER PASSED BY THE LD. TRIBUNAL INVOKING OUR JURISDICTION U/S.254(2) OF TH E INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'THE ACT') SINCE SUCH A MISTAKE IS E RROR APPARENT FROM THE FACE OF THE RECORD. 6. ON THE OTHER HAND, THE LD. REPRESENTATIVE OF THE ASSESSEE CONTENDED BEFORE US THAT THE REVENUE HAS PREFERRED THOSE THREE APPEALS SEPAR ATELY AGAINST THREE ORDERS PASSED BY THE LD. CIT(A) U/S.200A OF THE ACT WHICH AROSE SEPA RATELY OUT OF THREE SEPARATE ASSESSMENT ORDERS FOR QUARTER-1, QUARTER-3 & QUARTE R-4. ACCORDING TO HIM, SEPARATE CAUSE OF ACTION AROSE OUT OF THREE SEPARATE ORDERS PASSED BY THE ACIT, CPC - TDS, GHAZIABAD. HE FURTHER RELIES UPON THE ORDER PASSED BY THE LD. TRIBUNAL IN REJECTING THE APPEALS ON THE GROUND OF LOW TAX EFFECT. 7. WE HAVE HEARD THE REPRESENTATIVES OF THE RESPECT IVE PARTIES. WE HAVE PERUSED THE RELEVANT MATERIALS AVAILABLE ON RECORD. IT APPEAR S FROM THE RECORDS THAT THREE SEPARATE APPEALS WERE FILED BY THE ASSESSEE BEFORE THE LD. C IT(A) AGAINST THREE SEPARATE CAUSE OF ACTION AROSE OUT OF DIFFERENT ORDERS BEING DATED 08.11.2015 FOR QUARTER-1 OF AY 2015- 16, ORDER DATED 09.11.2015 FOR QUARTER-3 OF AY 201 5-16 AND ORDER DATED 09.11.2015 FOR QUARTER-4 OF AY 2015-16 ALL PASSED BY THE ACIT, CPC TDS, GHAZIABAD. THE LD. CIT(A) PASSED THREE SEPARATE ORDERS U/S.250(6) OF T HE ACT AND DECIDED IN FAVOUR OF ASSESSEE BY PASSING THREE SEPARATE ORDERS ON DIFFE RENT AMOUNT OF TDS. THUS, THE LD. - 4 - MA NOS.78, 79 & 80/AHD/2018 (IN ITA NOS.1921, 1922 & 1923/AHD/17) ITO VS. INSTITUTE OF PLASMA RESEARCH ASST.YEAR 2015-16 TRIBUNAL RIGHTLY CONSIDERED THE TAX EFFECT OF EACH OF THE APPEAL PREFERRED OUT OF THE ORDERS PASSED BY THE LD.CIT(A) DEALING WITH EACH SEPARATE ORDERS IMPUGNED BEFORE HIM AND RIGHTLY INVOKING CBDT CIRCULAR NO.10/2015 DATED 10. 12.2015 IN RESPECT OF TAX EFFECT DISMISSED THE SAME. WE FIND NO MISTAKE OF APPAREN T NATURE IN THE ORDER DATED 22.12.2017 PASSED BY THE TRIBUNAL. ORDER OF EACH QU ARTER BEING SEPARATE, THE QUARTER MAY BE SOMEWHAT RECKONED AS ASSESSMENT YEAR FOR THE PURPOSES OF CBDT CIRCULAR. THE ISSUE IS NOT FREE FROM DOUBT AND THUS DEBATABLE . WE, THEREFORE, FIND NO JUSTIFICATION TO ENTERTAIN THE MISCELLANEOUS APPLICATIONS PREFERRED BY THE REVENUE AS DISCUSSED ABOVE. THE MISCELLANEOUS APPLICATIONS FILED BY THE REVENUE ARE DEVOID OF ANY MERIT AND THUS DISMISSED. 8. IN THE RESULT, ALL THE THREE MISCELLANEOUS APPLI CATIONS FILED BY THE REVENUE ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 05/07/2018 SD/- SD/- ( PRADIP KUMAR KEDIA ) ( MS. MADHUM ITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 05/ 07 /2018 3.., ,.,../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. %( / THE APPLICANT 2. )%( / THE RESPONDENT. 3. 45 6 / CONCERNED CIT 4. 6 ( ) / THE CIT(A)-8, AHMEDABAD 5. 9: ;,5 , 5 1 , 4 / DR, ITAT, AHMEDABAD 6. ; => - / GUARD FILE. / BY ORDER, ) 9 //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD