DCIT, Central Circle-2(1)(1), Vadodara V. M/s. Tash Investment Pvt. Ltd, Vadodara

MA 99/AHD/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8383 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 08-02-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAMES KURIEN
• Keywords: Tax effect
• Section: 268A

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI RAJPAL YADAV, HONBLE JUDICIAL MEMBER AND SHRI WASEEM AHMED HONBLE ACCOUNTANT MEMBER MISC. APPLICATION NO.99/AHD/2019 WITH IT(SS)A NO.109/AHD/2018 / ASSTT. YEAR: 2014-2015 DCIT, CIR.2(1)(1) VADODARA. VS. M/S.TASH INVESTMENT P. LTD.9 TH FLOOR, ABS TOWER, OLD PADRA ROAD VADODARA 390 007. PAN : AAACT 6737 A ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI JAMES KURIEN, DR ASSESSEE BY : SHRI SULABH PADSHAH, AR / DATE OF HEARING : 04/10/2019 / DATE OF PRONOUNCEMENT: 10/10/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: PRESENT MA IS DIRECTED AT THE INSTANCE OF THE REVEN UE IN IT(SS)A.NO.109/AHD/2019. 2. IT IS PLEADED IN THE APPLICATION THAT ITS APPEAL FOR THE ASSTT.YEAR 2014- 15 WAS DISMISSED BY THE TRIBUNAL VIDE ORDER DATED 3 0.7.2018 ON THE GROUND THAT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.20 LAKHS, AND THEREFORE, IN VIEW OF CBDT CIRCULAR NO.3 OF 2018, THIS APPEAL IS NOT MAINTAINABLE. REVENUE HAS PLEADED THAT UNDER CLAUSE (5) OF INSTRU CTION NO.3 OF 2018, IT WAS CONTEMPLATED THAT IF COMPOSITE ORDER FOR MORE THAN THREE YEARS IS BEING PASSED BY AN APPELLATE AUTHORITY, AND RELIEF GIVEN BY THAT AUTHORITY IS BE CONSIDERED BY ADDING THE TAX INVOLVED ON THE ISSUE IN ALL THOS E YEARS, EVEN THOUGH IN BETWEEN THE YEAR UNDER APPEAL, TAX INVOLVED IS LESS THAN THE PRESCRIBED MONETARY LIMIT. ACCORDING TO THE DR, A COMPOSITE T AX EFFECT FOR SIX MA NO.99/AHD/2019 WITH ITA. 2 ASSESSMENT YEARS I.E. FROM THE ASSESSMENT YEARS 200 9-10 TO 2014-15, IF EVALUATED THEN IT IS MORE THAN RS.20 LAKHS. THEREF ORE, THE APPEAL OF THE REVENUE DESERVES TO BE DECIDED ON MERIT. THE LD.CO UNSEL FOR THE ASSESSEE DID NOT DISPUTE THIS FACT, BUT CONTENDED THAT BOARD HAS ISSUED FRESH INSTRUCTION ON 8.8.2019 I.E INSTRUCTION NO.17 OF 2019 IN THIS CIR CULAR, THE BOARD HAS PROVIDED THAT TAX EFFECT IN EACH YEAR HAS TO BE SEEN. HE PL ACED ON RECORD COPY OF THE BOARD CIRCULAR NO.17 OF 2019. THE RELEVANT PART OF THE CIRCULAR READS AS UNDER: 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: '5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTE D ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSES SEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPE AL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS I N WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS TH E MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RE SPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN I N THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTH ORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON I SSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE F ILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. I N CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE A SSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY.' 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE RECORD CAREFULLY. IN VIEW OF THE FACTUAL SUBMISSIONS OF THE LD.DR ON THE BASIS OF CBDT INSTRUCTION NO.3 OF 2018 DATED 11.7.2018, APPEAL BE ING IT(SS)A.NO.109/AHD/2018 IS RESTORED TO ITS ORIGINAL NUMBER AND ALLOW APPLICATION OF THE REVENUE. 4. WITH THE CONSENT OF BOTH THE PARTIES, WE DECIDE TO TAKE UP THE APPEAL FOR HEARING, SINCE LD.COUNSEL FOR THE ASSESSEE CONTENDE D THAT IN VIEW OF THE LATEST INSTRUCTION ISSUED BY THE CBDT DATED 8.8.2019, VIDE WHICH THE BOARD HAS REVISED MONETARY LIMIT TO FILE APPEAL BY THE DEPART MENT BEFORE THE TRIBUNAL FROM RS.20 LAKHS TO RS.50 LAKHS. FOR THAT, WE CONF RONTED THE LD.DR AS TO MA NO.99/AHD/2019 WITH ITA. 3 MAINTAINABILITY OF ITS APPEAL. ADMITTEDLY, THE REV ENUE HAS NOT DISPUTED THE SAME AND LEFT TO THE TRIBUNAL TO DECIDE THE SAME IN ACCORDANCE WITH LAW. 5. IN THE LIGHT OF THE ABOVE, AND IN VIEW OF LATEST CBDT INSTRUCTION NO.17 OF 2019 DATED 8.8.2019, AND IN VIEW OF PROVISIONS O F SECTION 268A OF THE INCOME TAX ACT, WE ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE CANNOT BE ADMITTED. THE SAME STANDS DISMISSED. 6. IN THE RESULT, MA IS ALLOWED; APPEAL IS DISMISSE D DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 10 TH OCTOBER, 2019 AT AHMEDABAD. SD/- SD/- (WASEEM AHMED ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER