INCOME TAX OFFICER-WARD-35(3), KOLKATA, KOLKATA vs. SRI LAXMIPAT SETHIA, KOLKATA

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ITA 2750/KOL/2013Status: DisposedITAT Kolkata16 November 2016AY 2009-20102 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 appeal by the revenue deserved to be dismissed due to low tax effect, as it was below the limit prescribed by CBDT Circular No. 21/2015. The circular was also found to be applicable retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2009-10. The quantum of addition was Rs. 43,83,322/- with a tax effect of Rs. 9,84,135/-.

What were the issues?

Whether the revenue's appeal should be dismissed in limine on the grounds of low tax effect as per CBDT Circular No. 21/2015, which applies retrospectively.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “A” BENCH: KOLKATA

Before: Shri P. M. Jagtap, AM & Shri K. Narasimha Chary, JM]

Hearing: 16.11.2016Pronounced: 16.11.2016

For the Appellant: Shri Amitabha Choudhury, JCIT For the Respondent: N o n e ORDER

Per Shri K. Narasimha Chary, JM:

1.

This appeal by revenue is arising out of order of CIT(A)-XX, Kolkata vide appeal No. 404/CIT(A)-XX/Wd-35(3)/2011-12/Kol dated 27.09.2013. Assessment was framed by ITO, Ward-35(3), Kolkata u/s. 143(3) of the Income-tax Act, 1961(hereinafter referred to as the “Act”) for AY 2009-10 vide his order dated 27.12.2011.

2.

None appeared on behalf of assessee at the time of hearing before us. At the outset, it is seen that the quantum involved in this case is Rs.43,83,322/-and tax effect on the disputed addition before us is Rs.9,84,135/-, which is less than Rs. 10 lacs.

3.

After perusing the materials available on record, we find that the additions disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 21 / 2015 dated 10.12.2015 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 21 / 2015 dated 10.12.2015 and the materials available on record, Ld. DR could not point out whether this case falls under any of the exception as provided in the circular despite specific opportunity was given, does not fall under any of the exceptions contemplated in the said Circular, as this is covered. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. This position has been confirmed by the Hon’ble Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC). Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No.21 / 2015 dated

2 Sri Laxmipat Sethia , AY 2009-10 10.12.2015. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case.

4.

In the result, the appeal of the revenue is dismissed.

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