INCOME TAX OFFICER, BURDWAN vs. PANCHRA UNION CO OPERATIVE AGRICULTURAL CREDIT SOCIETY LIMITED, BURDWAN
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Income Tax Appellate Tribunal, “A” BENCH KOLKATA
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA
Shri Manish Borad, Accountant Member Shri Sonjoy Sarma, Judicial Member I.T.A. No. 517/Kol/2024 Assessment Year: 2017-18 I.T.A. No. 518/Kol/2024 Assessment Year: 2018-19
Income Tax Officer, Burdwan, Aayakar Bhawan, Court Compound, Burdwan - 713101 .....................…...……………....Appellant vs. Panchra Union Co-operative Agricultural Credit Society Limited, Burdwan, Panchra Jamalpur, Burdwan - 713401 [PAN: AABAP9214F] .......................…..…..... Respondent
Appearances by: Assessee represented by : None Department represented by : Pradip Biswas, Addl. CIT Date of concluding the hearing : August 27, 2024 Date of pronouncing the order : August 28, 2024
ORDER PER BENCH: These appeals filed by the Revenue pertaining to the Assessment Years (in short ‘AY’) 2017-18 and 2018-19 are directed against the two separate orders passed u/s 250 of the Income Tax Act, 1961 (in short the ‘Act’) by the National Faceless Appeal Centre (NFAC), Delhi, dated
I.T.A. No. 517 & 518/Kol/2024 Panchra Union Co-operative Agricultural Credit Society Limited 31.10.2023 arising out of Assessment Order dated 23.12.2019 and 09.03.2021, passed under Section 143(3) of the Act.
The Revenue has raised the following grounds of appeal in ITA No. 517/Kol/2024:
“1 Whether on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC is justified in deleting the addition made by the AO disallowing deduction u/s 80P of the Act in spite of the fact that the assessee-society had claimed interest income, (by investing surplus or idle funds) earned on F.D/T.D as profit and gains of business. 2 Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) failed to take cognizance of the fact that Hon'ble Supreme Court has also directed in the Totgars Co-operative Sale Society Ltd vs ITO (2010) case to treat such interest income u/s 56 of the Act. 3 Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is justified in deleting the amount of Rs.58,53,100/- added back to the total income of the assessee for receiving in cash Rs.20,000/- or above in single transaction. 4 The appellant craved leave to make any amend, addition, alteration, modification etc. of the grounds either before the appellate proceedings, or in the course of appellate proceedings.” 3. The Revenue has raised the following grounds of appeal in ITA No. 518/Kol/2024:
“1 Whether on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC is justified in deleting the addition made by the AO disallowing deduction u/s 80P of the Act in spite of the fact that the assessee-society had claimed interest income, (by investing surplus or idle funds) earned on F.D/T.D as profit and gains of business. 2 Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) failed to take cognizance of the fact that Hon'ble Supreme Court has also directed in the Totgars Co-operative Sale Society Ltd vs ITO (2010) case to treat such interest income u/s 56 of the Act.
I.T.A. No. 517 & 518/Kol/2024 Panchra Union Co-operative Agricultural Credit Society Limited
3 Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is justified in deleting the amount of Rs.62,85,950/- added back to the total income of the assessee for receiving in cash Rs.20,000/- or above in single transaction. 4 The appellant craved leave to make any amend, addition, alteration, modification etc. of the grounds either before the appellate proceedings, or in the course of appellate proceedings.” 4. It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs. 50 lacs as the prescribed in the CBDT’s latest Circular No.17/2019 dated 08.08.2019. It will be pertinent to reproduce the relevant portion of the said Circular as follows:-
“2 . As a step toward further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000
We find that intention behind the Circular No.17/2019 dated 08.08.2019 needs to be understood in the following perspective:-
Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-à-vis where composite order for more than one assessment year is passed, para 5 of the circular is substituted by the following para: “5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. if, the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No. appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessments year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately.”
I.T.A. No. 517 & 518/Kol/2024 Panchra Union Co-operative Agricultural Credit Society Limited 6. On perusal of the Circular No.17/2019 dated 08.08.2019 and the materials available on record, it reveals 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. 7. The ld. DR has also fairly stated that tax effect involved in appeals are less than the prescribed limit. 8. In view of above stated position, the appeals of the Revenue are dismissed because of low tax effect than the prescribed limits as per CBDT Circular No.17/2019 (supra). In the result, both the appeals of the Revenue are dismissed. Kolkata, the 28th August, 2024.
Sd/- Sd/- [Manish Borad] [Sonjoy Sarma] Accountant Member Judicial Member Dated: 28.08.2024. AK, PS
I.T.A. No. 517 & 518/Kol/2024 Panchra Union Co-operative Agricultural Credit Society Limited Copy of the order forwarded to: 1 Panchra Union Co-operative Agricultural Credit Society Limited, Burdwan, 2. Income Tax Officer, Burdwan 3. CIT(A)- 4. CIT- , 5. CIT(DR),
//True copy// By order Assistant Registrar, Kolkata Benches
