WEALTH TAX OFFICER, WARD- 3(1), RAIPUR V. SHRI SANJAY BAJPAI, RAIPUR

WTA 02/RPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3541 (ITAT-RAIPUR)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 17-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V B SARGAR
• Assessee Lawyers: S R RAO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI PARTHA SARATHI CHAUDHU RY , JM . / WTA NO.02/RPR/2018 / ASSESSMENT YEAR : 20 09 - 10 WEALTH TAX OFFICER, WARD 3(1), RAIPUR ....... / APPELLANT / V/S. SHRI SANJAY BAJPAI, 2 ND AND 3 RD FLOOR, KRISHNA COMPLEX, JAIL ROAD, KACHERY CHOWK, RAIPUR, (C.G.) PAN : AHAPB0614Q / RESPONDENT A SSESSEE BY : SHRI S.R. RAO REVENUE BY : SHRI V.B. SARGAR / DATE OF HEARING : 08.05. 2019 / DATE OF PRONOUNCEMENT : 08.05. 2019 2 W TA NO . 02 /RPR/201 8 / ORDER PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE REVENUE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF WEALTH TAX (APPEALS) - 1, RAIPUR DATED 2 1.03.2018 PASSED U/S. 16(3) R.W.S. 17(1) OF THE WEALTH TAX ACT, 19 57 (HEREINAFTER REFERRED TO AS THE ACT) FOR THE A.Y. 20 09 - 10. 2. THE LD. AR OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF CBDT CIRCULAR NO. 3/2 018, DATED 11 - 07 - 2018. THE LD. AR OF THE ASSESSEE POINTED THAT VIDE RECENT CIRCULAR NO. 5/2019 DATED 05 - 02 - 2019 THE SCOPE OF CIRCULAR NO. 3/2018 (SUPRA) HAS BEEN EXTENDED TO WEALTH TAX APPEAL FILED BY THE DEPARTMENT. 3. ON THE OTHER HAND THE LD. DR FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT, TAX EFFECT IS LESS THAN RS.20 LAKHS. 4. BOTH SIDES HEARD. THE CBDT VIDE EARLIER CIRCULAR NO.3/2018 (SUPRA) HAD PRESCRIBED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND SLPS/APPEALS BEFORE THE HONBLE SUPREME COURT OF INDIA. AS PER PARA 11 OF SAID CIRCULAR, IT WAS SPECIFIED THAT MONETARY LIMIT IN PARA 3 SHALL NOT APPLY TO WRIT 3 W TA NO . 02 /RPR/201 8 MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME T AX AND FILING OF APPEALS IN SUCH CASES SHALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF STATUTE AND RULES. THE CBDT VIDE CIRCULAR NO. 5/2019 (SUPRA) CLARIFIED THAT SINCE THERE IS NO CHARGE UNDER WEALTH TAX ACT, 1957 W.E.F. 01.04.2016, AS A STEP TOW ARDS LITIGATION MANAGEMENT, THE BOARD HAS DECIDED THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME TAX CASES AS PRESCRIBED IN PARA 3 OF THE CIRCULAR (NO. 3/2018) SHALL ALSO APPLY TO WEALTH TAX APPEAL S THROUGH EXTENSION OF CIRCULAR TO WEALTH TAX MATTERS IN MUTATIS MUTANDIS MANNER AND WITH MODIFICATIONS AS PRESCRIBED. FOR THE PURPOSE OF WEALTH TAX APPEALS, PARA 4 OF THE CIRCULAR SHALL NOW READ AS UNDER (AS PROVIDED IN THE CIRCULAR): - 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON NET WEALTH ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH NET WEALTH BEEN REDUCED BY THE AMOUNT OF WEALTH IN RESPECT OF THE ISSUES AGAINST WHICH APPEALS IS INTENDED TO BE FILED. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EX CEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL REMAIN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 5. IN VIEW OF EXTENSION OF CIRCULAR TO WEALTH TAX APPEALS COMING INTO EFFECT, WHICH IS APPLICABLE TO PENDING APPEALS, THE PRESENT APPEALS FILED BY THE REVENUE BEFORE THE TRIBUNAL ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. THEREFORE, WITHOUT GOING INTO MERITS OF THE ADDITIONS MADE IN THE HANDS OF ASSESSEE, WE DISMISS THE APPEAL FILED BY REVENUE. 4 W TA NO . 02 /RPR/201 8 6. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR NO. 3/2018 (SUPRA). 7. IN THE RESULT, APPEAL BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COUR T AT THE TIME OF HEARING ON WEDNESDAY, THE 08 TH DAY OF MAY, 2019. SD/ - SD/ - PARTHA SARATHI CHAUDHURY ANIL CHATURVEDI JUDICIAL MEMBER ACCOUNTANT MEMBER / RAIPUR ; / DATED : 08 TH MAY, 2019 . RK / COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, I.T.A.T., RAIPUR //TRUE COPY// //TRUE COPY// / BY ORDER, / PRIVATE SECRETARY , / ITAT, RAIPUR . 5 W TA NO . 02 /RPR/201 8 DATE 1 DRAFT DICTATED ON 08.05. 2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 08.05. 201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER