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Income Tax Appellate Tribunal, “C” BENCH: KOLKATA
Before: Shri A. T. Varkey, JM & Shri M. Balaganesh, AM]
IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA [Before Shri A. T. Varkey, JM & Shri M. Balaganesh, AM] Sl. ITA No. & A.Y. Revenue/Rep. by Vs Assessee/PAN/Rep. by (As per power filed) No. (1) (2) (3) (4) 1. 1402/Kol/2013 ITO, Wd-8(2), Kolkata M/s. Diligent Investment Pvt. Ltd., 32, AY. 2005-06 Rep. by Sh. Saurabh Chowringhee Road, Kolkata-700 071 Kumar, Addl.CIT, Sr. (PAN: AAACD3772A), Rep. by Shri DR, Subash Agarwal, Advocate 2. 601/Kol/2017 ACIT(IT), Cir-1(1), Shri Aninda Bhattacharji. 169/PL/23, AY. 2013-14 Kolkata, Rep. by Sh. Parui Housing Estate, Ho Chi Minh Saurabh Kumar, Addl.CIT, Sarani, Kolkata-700 061. Sr. DR PAN:ADZPB9606R, rep. by Shri Navin Jain, AR, 3. 629/Kol/2017 DCIT, Cir-8(1), Kolkata M/s. Multi Serve Rolls Ltd., 77/1A, Park Street, 2nd floor, Room No. 7, Kolkata- AY. 2010-11 Rep. by Sh. Saurabh Kumar, Addl.CIT, Sr. 700 071. PAN: AABCM8075D, rep. by DR, None 4. 2300/Kol/2017 ACIT, Cen. Cir-2(3), M/s. Skipper Furnishing Pvt. Ltd., AY. 2013-14 Kolkata 46/31/1, Gariahat Road, Kolkata-700 029. Rep. by Sh. Saurabh PAN:AAICS4009A, rep. by Shri Amit Kumar, Addl.CIT, Sr. Agarwal, AR DR, 5. 2352/Kol/2017 ACIT (OSD), Ward-12(3), M/s. Khetawat Builders Pvt. Ltd., 19A, AY.2014-15 Kolkata Sarat Bose Road, Kolkata-700 020. Rep. by Sh. Saurabh PAN:AABCK1242L), rep. by None Kumar, Addl.CIT, Sr. DR, 6. 2447/Kol/2017 ITO, Wd-48(4),Kol. Smt. Lalita Devi Verma, 233/2, Bellilious AY. 2013-14 Rep. by Sh. Saurabh Road, Howrah-711101, Kumar, Addl.CIT, Sr. PAN:AFUPV5433R, rep. by None DR, 7. 1905/Kol/2017 DCIT, Cir-5(1)Kol. M/s. Somany Ceramics Ltd., 2, Red Cross AY. 2008-09 Rep. by Sh. Saurabh Place, Kolkata-700 001. Kumar, Addl.CIT, Sr. PAN: AAECS0763K, Rep. by Shri P. K. DR, Sanghari, FCA 8. 429/Kol/2017 DCIT, Cir-2(1),Kol. Shri Sanjoy Chatterjee, 2A, Shitala Tala AY. 2013-14 Rep. by Sh. Saurabh Lane, Rishra, Hooghly-712248, PAN: Kumar, Addl.CIT, Sr. AEZPC2746Q, Rep. by Shri Navin Jain, DR, AR 9. 474/Kol/2017 ACIT,Cen Cir-2(3), Shri Manoj Kumar Gupta, 36H, AY. 2013-14 Kolkata Tollygunge Circular Road, Kolkata-700 Rep. by Sh. Saurabh 053, PAN:AGRPG1199B, Rep. by Shri Kumar, Addl.CIT, Sr. Amit Agarwal, AR DR, 10. WTA 16/Kol/2017 ACIT, Cir-11(2),Kol. M/s. Martin Burn Limited, 1, R. N. AY. 1997-98 Rep. by Sh. Saurabh Mukherjee Road, Kolkata-700 001. Kumar, Addl.CIT, Sr. DR PAN:AABCM9913A, Rep. by Shri Pranabesh Sarkar, Advocate 11. 1954/Kol/2016 ITO, Ward-31(4), Kolkata Shri Rajat Kumar Majumder, 36/B, AY. 2012-13 Rep. by Sh. Saurabh Paddapukur Road, Kolkata-700 020, Kumar, Addl.CIT, Sr. DR PAN:AEFPM6217E), Rep. by Shri Sharad Mohata, FCA 12. 201/Kol/2017 ACIT, Cir-2(2),Kolkata. M/s. Peerless Securities ltd., 1, Chowringhee Square, 2nd floor, Kolkata- AY. 2012-13 Rep. by Sh. Saurabh Kumar, Addl.CIT, Sr. DR 700059, PAN:AABCP5069Q), Rep. by Shri Sanjay Bhattacharjee, AR 13. 1631/Kol/2014 ITO, Ward-28(2), Kolkata Shri Sujit Kumar Bhagat, 53/31, Prince AY. 2007-08 Rep. by Sh. Saurabh Anwar Shaw Road, Near Amarpali Santi Kumar, Addl.CIT, Sr. DR Apartment, Kolkata-68, PAN:ADTPB8219J, Rep. by Ankit Jalan, AR 14- 2030 to 2034/Kol/2016 DCIT, Cir-10(1), Kolkata M/s. Bridge & Roof Co. (India) Ltd., 2/1, Russel Street, 5th floor, Kolkata-700 071, 18. AY. 2006-07,2008-09, Rep. by Sh. Saurabh 2010-11,2012-13, 2013- Kumar, Addl.CIT, Sr. DR PAN: AABCB3166E), Rep. by None 14 19- IT(SS)A 92&93/K/2015 DCIT, Cen. Cir-3(3), Shri Shyama Prasad Murarka, 1/C, 20 AY. 2006-07 & 2007-08 Kolkata Mandeville Garden, Kolkata-700 019, Rep. by Sh. Saurabh PAN:AFCPM6318S, Rep. by N o n e Kumar, Addl.CIT, Sr. DR 21. 1383/Kol/2016 DCIT, Cir-10(1), Kolkata M/s. Rosewood Projects Pvt. Ltd., 63/1, AY. 2013-14 Rep. by Sh. Saurabh Charu Chandra Place (East), Kolkata-33, Kumar, Addl.CIT, Sr. DR PAN: AABCR7243Q), Rep. by Shri Manoj Kataruka, Advocate 22. 1493/Kol/2016 ACIT, Cir-10(2), Kolkata M/s. Pilot Consultants Ltd., 13, Mahendra AY. 2007-08 Rep. by Sh. Saurabh Road, Kolkata-700 025, Kumar, Addl.CIT, Sr. DR PAN:AABCP6293N, Rep. by Shri Subash Agarwal, Advocate 23. 792/Kol/2015 ITO, Ward-40(2), Kolkata M/s. Sribhumi Publishing Co., 79, AY. 2007-08 Rep. by Sh. Saurabh Mahatma Gandhi Road, Kolkata-700 009 Kumar, Addl.CIT, Sr. DR PAN: AAMFS6690N, Rep. by Shri Mihir Bandyopadhyay, AR 24. 1257/Kol/2015 ACIT, Cir-39,Midnapore M/s. Gold & Silver House, C/o S. N. AY. 2011-12 Rep. by Sh. Saurabh Ghosh & Associates, Advocates, Seven Kumar, Addl.CIT, Sr. DR Brothers Lodge, P.O. Buroshibtala, P.S. Chinsurah, Dist. Hooghly-712105. PAN:AACFG7928F, Rep. by Shri Somnath Ghosh, Advocate 25. 1731/Kol/2016 ACIT, Cir-34, Kolkata Shri Dilip Kr. Nahata, 196, Old China AY 2005-06 Rep. by Sh. Saurabh Bazar Street, Kol-1, PAN:ABPPN7782E, Kumar, Addl.CIT, Sr. DR Rep. by None 26. 2338/Kol/2013 ITO, Ward-2(2), Asansol Shri Sandeep Kumar Madhogaria, Piramal AY 2009-10 Rep. by Sh. Saurabh Sagarmal, Station Road, Barakar-713324, Kumar, Addl.CIT, Sr. DR Dist. Burdwan, PAN:AJMPM4041L, Rep. by Shri Somnath Ghosh, Advocate 27- 338/Kol/2014 & CO ITO, Ward-12(2), Kolkata M/s. N. N. Saha & Sons Agr Pvt. Ltd., 28. 51/Kol/2014 Rep. by Sh. Saurabh Narayanpur Battala, Rajarhat, Gopalpur, AY. 2009-10 Kumar, Addl.CIT, Sr. DR Kolkata-700 136 PAN:AACCN7266N, Rep. by Shri Subash Agarwal, Advocate 29. 2450/Kol/2016 DCIT, circle-2, Siliguri M/s. Radha Trading Co., Satish Mansion, AY. 2010-11 Rep. by Sh. Saurabh Sevoke road, Siliguri-734001 Kumar, Addl.CIT, Sr. DR PAN:AADFR2443M, Rep. by None 30. 572/Kol/2015 DCIT, Cir-63, Kolkata Shri Satyanarayan Jalan, 1, Netaji Subhas Road, 1st Floor, Kolkata-700 001, PAN: AY. 2009-10 Rep. by Sh. Saurabh Kumar, Addl.CIT, Sr. DR AAKPJ4048B, Rep. by Shri Arvind Agarwal, Advocate 31. 958/Kol/2016 ITO, Ward-31(3), Kolkata Shri Ankit Agarwal, 227/2, AJC Bose AY. 2010-11 Rep. by Sh. Saurabh Road, Kolkata-700020, Kumar, Addl.CIT, Sr. DR PAN:AIBPA6657N, Rep. by Shri Miraj D. Shah, AR. 2
362/Kol/2016 ACIT, Circle-49, Kolkata Shri Nikhil Chandra Mitra, 34, AY. 2010-11 Rep. by Sh. Saurabh Chawlpatty Road, Baguiati, Kolkata-59, Kumar, Addl.CIT, Sr. DR PAN: AHXPM9169L, Rep. by shri Subhas Agarwal, Advocate 33. 2367/Kol/2016 DCIT, C.C -4(2),Kolkata M/s. Bhadreswar Rice Mill, Vill&P.O. AY 2010-11 Rep. by Sh. Saurabh Paraj, Burdwan, PAN: AAGFB2714A, Kumar, Addl.CIT, Sr. DR Rep. by Shri Arvind Agarwal, Advocate
Date of hearing: 31.07.2018 Date of pronouncement: 31.07.2018
ORDER Per Shri A. T. Varkey, JM:
These appeals of the revenue and the only CO in arise out of the various orders of the Learned CIT(A) against the orders of assessment framed u/s 147 / 143(3) / 144 etc. of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’).
At the outset itself, the Ld. DR has brought to our attention to the fact that the revenue has preferred these aforesaid appeals which have tax effect of less than Rs. 20 lacs, therefore, the revenue does not intend to press the appeals in the light of the CBDT Circular No.3/2018 dated 11.07.2018 wherein CBDT has directed 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) 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.”
In para-13 of the said circular it has further been clarified that the revised monetary limits will apply retrospectively. The relevant para-13 of the Circular reads thus: 3
4 “13. This Circular will apply to SLPs/appeals/cross objections/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.
In the present case, the tax effect in all these appeals by the revenue are less than Rs.20,00,000/-. Though these appeals had been filed by the revenue on various dates and were within the monetary limit in the form of tax effect for filing appeals before Tribunal, in view of para-13 of the Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.3/2018 referred to above.
It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute.
5.1. In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.20 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.
In view of the above, we hold that the appeals filed by the Department, against the impugned orders of the Ld. CIT(A), are contrary to the policy decision of the Department and as such the appeals filed by the Department are dismissed in limine. Cross Objection of the assessee arises out of is supportive and hence, the same is dismissed.
In the result, the appeals by the Revenue as well as the CO of the assessee is dismissed.