DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-JORHAT, JORHAT vs. M/S. ASSAM TEA INDUSTRIES, JORHAT

आयकर अपीलीय अधिकरण गुवाहाटी पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH AT KOLKATA [वर्ुअल कोटु] [Virtual Court] श्री राजपाल यादव, उपाध्यक्ष (कोलकाता क्षेत्र) एवं श्री धगरीश अग्रवाल, लेखा सदस्य के समक्ष Before SRI RAJPAL YADAV, VICE PRESIDENT & SRI GIRISH AGRAWAL, ACCOUNTANT MEMBER M.A. No. 2/GTY/2020 Arising out of I.T.A. No.: 67/GTY/2019 Assessment Year: 2014-15 DCIT, Circle-Jorhat, Assam......................................................Appellant Vs. M/s. Assam Tea Industries....................................................Respondent [PAN: AAKFA 4866 A] I.T.A. No.: 67/GTY/2019 Assessment Year: 2014-15 DCIT, Circle-Jorhat, Assam......................................................Appellant Vs. M/s. Assam Tea Industries....................................................Respondent [PAN: AAKFA 4866 A] C.O. No. 6/GTY/2019 Arising out of I.T.A. No.: 67/GAU/2019 Assessment Year: 2014-15 M/s. Assam Tea Industries.......................................................Appellant [PAN: AAKFA 4866 A] Vs. DCIT, Circle-Jorhat, Assam...................................................Respondent

M.A. No. 2/GTY/2020 I.T.A. No.: 67/GTY/2019 C.O. No. 6/GTY/2019 M/s. Assam Tea Industries. Appearances by: Sh. N. T. Sherpa, JCIT, appeared on behalf of the Revenue. Sh. Sanjay Mody, FCA, appeared on behalf of the Assessee. Date of concluding the hearing : April 5th, 2023 Date of pronouncing the order : April 27th, 2023 ORDER Per Girish Agrawal, Accountant Member: By way of this Miscellaneous Application, the Revenue seeks to recall the order of the Tribunal in ITA No. 67/GTY/2019 dated 23.08.2019 wherein the Tribunal had dismissed the appeal of the Revenue, involving the issue of low tax effect. 2. Revenue has filed this Miscellaneous Petition on the following grounds: “In consideration of the fact that the Tax Effect in ITA No.64/Gau/2018 is Rs.70,88,430/- which is above the monetary ceiling prescribed in Circular No. 17/2019 dated 08/-08-2019, the Hon'ble ITAT, Gauhati may be pleased to recall it's order dated 23-08-2019 and restore the departmental Appeal for being decided on merit. In ITA No. 64/Gau/2018 in respect of M/s Assam Tea Industries [AAKFA4866A] A/Y 2014-15.” 3. The Coordinate Bench of ITAT, Kolkata had disposed off the appeal filed by the Revenue in ITA No. 67/GAU/2019 along with CO No. 06/GAU/2019 for AY 2014-15, in view of the CBDT Circular No. 17/2019 dated 08.08.2019 on account of monetary limits laid down for filing of appeals by the Department before the ITAT and Hon'ble High Courts and SLP before the Hon'ble Supreme Court of India. In the said order of the Coordinate Bench, opportunity was granted vide para 4 to the Revenue for moving Miscellaneous Application for recalling the order if at a later point of time, it finds that the tax effect in the appeal is more than Rs. 50 lakh or even otherwise if the appeal of the Revenue is maintainable. 4. Ld. Sr. D/R referred to Form No. 36 wherein the total tax effect noted is of Rs. 70,88,430/- and thus, requested for recalling the order. However, ld.

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M.A. No. 2/GTY/2020 I.T.A. No.: 67/GTY/2019 C.O. No. 6/GTY/2019 M/s. Assam Tea Industries. Counsel for the assessee pointed that Clause-6 of the CBDT Circular which deals with income computed under the provisions of Section 115JB or 115JC of the Act has not been dealt with which will result into tax effect of less than Rs. 50 lakh.

“6. Further, where income is computed under the provisions of section 115JB or section 115JC, for the purposes of determination of “tax effect’, tax on the total income assessed shall be computed as per the following formula- (A — B) + (C — D) where, A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of the disputed issues under general provisions; C = the total income assessed as per the provisions contained in section 115JB or section 115JC; D = the total income that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section H5JCwas reduced by the amount of disputed issues under the said provisions: However, where the amount of disputed issues is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D.”

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M.A. No. 2/GTY/2020 I.T.A. No.: 67/GTY/2019 C.O. No. 6/GTY/2019 M/s. Assam Tea Industries. 7. The calculation of tax effect as per the above referred Clause submitted by ld. Counsel for the assessee is as under: “Formulae: Tax Effect = (A-B)+(C-D) In the instant case, A= Rs. 69,26,631/- (tax on assessed income as per normal provision) B= Rs. 41,817/- (tax on returned income of Rs. 1,35,330/- as per normal provision) C= Rs. NIL (tax on assessed income u/s 115JC read with section 115JEE as no deduction under chapter Vl-A, Sec. 10AA and 35AD was allowed) D= Rs. 43,99,565/- (tax on retuned income as per computation u/s 115JC) Therefore, tax effect = (69,26,631 - 41,817) + (0 - 43,99,565) = 68,84,814-43,99,565 = Rs. 24,85,249/-” 8. We have heard the rival contentions and perused the material placed on record. We find it proper to recall the order of the Coordinate Bench of ITAT pronounced on 23.08.2019 along with the Cross Objection, considering the claim of tax effect of Rs. 70,88,430/- claimed by the Revenue in Form No. 36. Accordingly, the Miscellaneous Application filed by the Revenue is allowed and the appeal as well as the Cross Objection are reinstituted. 9. Now coming to ITA No. 67/GTY/2019 filed by the Revenue & CO No. 06/GTY/2019 filed by the assessee, we note that while disposing the appeal and the cross objection on an earlier occasion, Clause-6 of the CBDT Circular was not dealt with which relates to the situation where income is computed under the provisions of Section u/s 115JB or 115JC of the Act. In the present case before us, ld. Counsel for the assessee has evidently demonstrated the tax effect in terms of Clause-6 which is below the threshold limits of Rs. 50 lakh prescribed in the said CBDT Circular. The calculation of tax effect as per Clause-6 has already been reproduced above which comes to Rs. 24,85,249/- , thus, considering this amount as tax effect, the ultimate result for disposing Page 4 of 5

M.A. No. 2/GTY/2020 I.T.A. No.: 67/GTY/2019 C.O. No. 6/GTY/2019 M/s. Assam Tea Industries. the appeal as well as the cross objection remains the same as held earlier i.e. the appeal by the Revenue and the cross objection by the assessee are dismissed in view of the CBDT Circular. 10. In the result, appeal filed by the Revenue and Cross Objection filed by the assessee are dismissed. Order pronounced in the Court on 27th April, 2023 at Kolkata. Sd/- Sd/- [Rajpal Yadav] [Girish Agrawal] Vice President Accountant Member Dated: 27.04.2023 Bidhan (P.S.) Copy of the order forwarded to: 1. DCIT, Circle-Jorhat, Assam. 2. M/s. Assam Tea Industries, Gattani Building, Rupahi Ali, Jorhat- 785 001. 3. CIT(A)- Jorhat, Assam. 4. CIT- 5. CIT(DR), Guwahati Bench, Guwahati. //True copy // By order

Assistant Registrar ITAT, Kolkata Benches Kolkata

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