ACIT, CHENNAI v. Saravana Stores (Thanga Nagai Maligai), CHENNAI

ITA 678/CHNY/2017 | 2008-2009
Pronouncement Date: 19-11-2019 | Result: Dismissed

Appeal Details

RSA Number 67821714 RSA 2017
Assessee PAN AAUFS9173N
Bench Chennai
Appeal Number ITA 678/CHNY/2017
Duration Of Justice 2 year(s) 7 month(s) 30 day(s)
Appellant ACIT, CHENNAI
Respondent Saravana Stores (Thanga Nagai Maligai), CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 19-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 19-11-2019
Last Hearing Date 31-10-2017
First Hearing Date 31-10-2017
Assessment Year 2008-2009
Appeal Filed On 20-03-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI ! '!# $ % BEFORE SHRI GEORGE MATHAN JUDICIAL MEMBER AND SHRI INTURI RAMA RAO ACCOUNTANT MEMBER ! ./ ITA NOS.677 TO 682/CHNY/2017 & /ASSESSMENT YEARS: 2007-08 TO 2012-13 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(2) NUNGAMBAKKAM HIGH ROAD CHENNAI 600 034 [PAN: AAUFS 9173N] VS. M/S. SARAVANA STORES (THANGA NAGAI MALIGAI) REPRESENTED BY LEGAL HEIRS NO.115 USMAND ROAD T. NAGAR CHENNAI 600 017 ( ' /APPELLANT) ( ()' /RESPONDENT) ' * + / APPELLANT BY : SHRI J. PAVITHRAN KUMAR JCIT DR ()' * + /RESPONDENT BY : SHRI S. SRIDHAR ADVOCATE * -. /DATE OF HEARING : 19.11.2019 /0& * -. / DATE OF PRONOUNCEMENT : 19.11.2019 1 / O R D E R PER SHRI GEORGE MATHAN JUDICIAL MEMBER : ALL THESE SIX APPEALS FILED BY THE ASSESSING OFFICE R CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONER OF INCOME TAX (APPEALS)-18 CHENNAI AND MOST IMPORTAN TLY THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS.50 00 000/- IN EACH OF THESE APPEALS. ITA NO. 677 TO 682/CHNY/2017 :- 2 -: 2. VIDE CBDT CIRCULAR NO.17/2019 IN F.NO.279/MISC .142/2007-ITJ(PT) DATED 8TH AUGUST 2019 THE INCOME TAX DEPARTMENT H AS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECIS IONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS AND ANNOUNCED ITS POLICY DECISION NOT TO FILE OR PRESS THE APPEALS BEFORE THIS TRIBUNAL AGAINST T HE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OV ERALL TAX EFFECT EXCLUDING INTEREST EXCEPT WHEN INTEREST ITSELF IS I N DISPUTE IS RS 50 00 000 OR LESS. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE CONCESSION BY THIS CBDT CIRCULAR ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRU CTUOUS. 4. THIS CIRCULAR ONLY ENHANCES THE MONETARY LIMIT S AND GIVES FURTHER RELAXATION. THE OLD CIRCULAR BEYOND ANY DISPUTE OR CONTROVERSY CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. 5. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STA NDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO . 3/2018 (AND SUBSEQUENT AMENDMENT THERETO) AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION 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 ITA NO. 677 TO 682/CHNY/2017 :- 3 -: ACCORDINGLY THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY L IMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50 00 000 2 BEFORE HIGH COURT 1 00 00 000 3 BEFORE SUPREME COURT 2 00 00 000 3. FURTHER WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE A SSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOW ING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERYASSESSEE. IF IN THE CASE OF AN ASSESSEE THE D ISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR APPEAL CAN BE FILED IN RE SPECT 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 S HALL 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 CAS E OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MO RE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT 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. I N CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE E ACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INT ACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CRO SS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL AL SO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRA WN/ NOT PRESSED. 7. THE HONBLE SUPREME COURT IN THE CASE OF THE CO MMISSIONER OF INCOME TAX-5 NEW DELHI VS. KESHAV POWER LTD. IN S LP NO.21497/2019 DATED 16.08.2019 REPORTED IN 2019(8)TMI 811(SC) HAS ALSO APPLIED THE CIRCULAR NO.17/2019 DATED 08.08.2019 HAS DISMISSED THE APPEAL HOLDING AS FOLLOWS: ITA NO. 677 TO 682/CHNY/2017 :- 4 -: SINCE THE TAX EFFECT INVOLVED IN THE MATTER IS LESS THAN RS.2/- CRORES GOING BY THE LATEST CIRCULAR ISSUED BY THE CBDT WE SEE N O REASON TO INTERFERE IN THIS MATTER. THE SPECIAL LEAVE PETITION IS DISMISSED LE AVING ALL THE QUESTIONS OF LAW OPEN. 8. LEARNED COMMISSIONER (DR) SUBMITS LIBERTY MAY K INDLY BE GIVEN TO POINT OUT UPON NECESSARY FURTHER VERIFICATIONS AN D TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE C OVERED BY THE EXCEPTIONS AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS WHEREIN THE TAX EFFECT IN TERMS OF THE CB DT CIRCULAR (SUPRA) EXCEEDS RS 50 00 000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBER TY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMAR ILY DISMISSED EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY O THER REASON AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGAR D. 9. IN THE CIRCUMSTANCES RESPECTFULLY FOLLOWING TH E PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF COMMIS SIONER OF INCOME TAX-5 NEW DELHI VS. KESHAV POWER LTD. REFERRED TO SUPRA AND IN THE LIGHT OF THE ABOVE DISCUSSIONS ALL THE SIX APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE. ITA NO. 677 TO 682/CHNY/2017 :- 5 -: 10. IN THE RESULT ALL THE SIX APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH NOVEMBER 2019 IN CHENNAI. SD/- ( '!# $ ) (INTURI RAMA RAO) . /ACCOUNTANT MEMBER SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI 2! /DATED: 19 TH NOVEMBER 2019 . IA SR. P.S 1 * (-34 54&- /COPY TO: 1. ' /APPELLANT 2. ()' /RESPONDENT 3. 6- ( )/CIT(A) 4. 6- /CIT 5. 4 78 (- /DR 6. 89 : /GF