DCIT, CIRCLE-12, KOLKATA, KOLKATA vs. M/S IFB AUTOMOTIVE PVT. LTD., KOLKATA

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ITA 69/KOL/2014Status: DisposedITAT Kolkata03 August 2016AY 2008-20092 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 was to be dismissed in limine due to low tax effect, as it did not fall under any exceptions to the CBDT circular. The circular was binding and applicable retrospectively to pending appeals.

What were the facts?

The revenue filed an appeal before the ITAT against an order of the CIT(A). The quantum of addition and the tax effect were below the monetary limits prescribed by CBDT Circular No. 21/2015 for filing appeals.

What were the issues?

Whether the revenue's appeal should be dismissed on the grounds of low tax effect as per CBDT circular, despite the merits of the case.

Which sections of the Income-tax Act were involved?

Section 143(3)

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, “A” BENCH: KOLKATA

Before: Shri N. V. Vasudevan, JM & Shri M. Balaganesh, AM]

Hearing: 19.07.2016Pronounced: 03.08.2016

ORDER Per Shri M. Balaganesh, AM:

This appeal by revenue is arising out of order of CIT(A)-XII, Kolkata vide Appeal No. 467/XII/Cir-12/10-11 dated 07.10.2013. Assessment was framed by Addl.CIT, Range-12, Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2008-09 vide his order dated 27.12.2010.

2.

At the outset, it is seen that the quantum involved in this case is Rs.25,91,271/-and tax effect on the disputed addition before us is Rs.9,06,979/-, 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 10.12.2015. Accordingly, this being a low tax

4.

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

Order pronounced in the open court on 03.08.2016. Sd/- Sd/- (N. V. Vasudevan) (M. Balaganesh) Judicial Member Accountant Member Dated : 3rd August, 2016 Jd.(Sr.P.S.) Copy of the order forwarded to:

APPELLANT – DCIT, Circle-12, Kolkata 1. Respondent – M/s. IFB Automotive Pvt. Ltd., 14, taratolla Road, 2 Kolkata-700 088. The CIT(A), Kolkata 3. 4. ACIT , Kolkata 5. DR, Kolkata Benches, Kolkata

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