D.C.I.T., CIRCLE-4(2), KOLKATA, KOLKATA vs. SMT. MADHU NEOTIA, KOLKATA

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ITA 2366/KOL/2016Status: DisposedITAT Kolkata30 October 2018AY 2009-103 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal deserved to be dismissed due to low tax effect, as per CBDT Circular No. 3/2018. The circular's revised monetary limits were clarified to apply retrospectively to pending appeals.

What were the facts?

The Revenue preferred an appeal against the order of the CIT(A). At the time of hearing, the assessee pointed out that the tax effect in the appeal was below the revised monetary limit set by the CBDT for filing appeals.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed based on the low tax effect, as per the prevailing CBDT circular. The retrospective application of the circular was also a consideration.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA

Before: Shri P.M. Jagtap, Vice-(KZ) & Shri Satbeer Singh Godara

Per Shri P.M. Jagtap, Vice-President (KZ):- This appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals)-8, Kolkata dated 09.09.2016.

2.

At the time of hearing, the ld. Counsel for the assessee, at the outset, has pointed out that the tax effect involved in this appeal of the Revenue is less than the revised monetary limit of Rs.20 lakhs fixed by the CBDT for filing the Revenue’s appeal before the Tribunal and this position is not disputed by the ld. D.R. It will be pertinent to reproduce the relevant portion of the said Circular No. 3/2018 dated 11.07.2018 as under:- “3 . Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Sl. No. Appeals/SLP’s in Income-tax matters Monetary Limit (in Rs)

Assessment year: 2009-2010 Page 2 of 3

1.

Before Appellate Tribunal 20,00,000/- 2. Before High Court 50,00,000/- 3. Before Supreme Court 1,00,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. 4. For this purpose, 'tax effect' means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (hereinafter referred to as 'disputed issues’). Further, 'tax effect' shall be tax including applicable surcharge and cess. However, the tax will not include any interest thereon, except 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 cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.” 3. On perusal of the Circular No. 3/2018 dated 11.07.2018 and the materials available on record, we do not see this case falling under any of the exceptions contemplated in the said circular per se. We also find that this circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals as well. Hon’ble apex court in Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC) has settled the law that CBDT’s circulars are very much binding on revenue authorities. We thus hold that this Revenue’s appeal deserves to be dismissed in terms of low tax effect. We make it clear that it shall be very much open for the Revenue to seek necessary rectification in case it is found that this appeal involves operation of exception clauses in the tax effect circular as per law.

4.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on October 30, 2018.

1.

Sd/- Sd/- (Satbeer Singh Godara) (P.M. Jagtap) Judicial Member Vice-President(KZ) Kolkata, the 30th day of October, 2018

Assessment year: 2009-2010 Page 3 of 3 Copies to : (1) Deputy Commissioner of Income Tax, Central Circle-4(2), Kolkata, Aayakar Bhawan Poorva, Room No. 506, 110, Shanti Pally, 5th Floor, Kolkata-700 107

(2) Smt. Madhu Neotia, 7/2, Queen’s Park, Ballygunge, Kolkata-700 019

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