D.C.I.T CC - II,kolkata, Kolkata v. M/s Ascu Arch Timber Protection Ltd., Kolkata

ITA 72/KOL/2013 | 2007-2008
Pronouncement Date: 31-07-2014

Appeal Details

RSA Number 7223514 RSA 2013
Assessee PAN AACCA4068R
Bench Kolkata
Appeal Number ITA 72/KOL/2013
Duration Of Justice 1 year(s) 6 month(s) 16 day(s)
Appellant D.C.I.T CC - II,kolkata, Kolkata
Respondent M/s Ascu Arch Timber Protection Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2014
Appeal Filed By Department
Bench Allotted C
Tribunal Order Date 31-07-2014
Assessment Year 2007-2008
Appeal Filed On 14-01-2013
Judgment Text
C IN THE INCOME TAX APPELLATE TRIBUNAL BENCH- C KOLKATA ( ) BEFORE . . SHRI P.K.BANSAL ACCOUNTANT MEMBER /AND % 1 SHRI GEORGE MATHAN JUDICIAL MEMBER ( / ITA NO. 72/KOL/2013 A.Y 2007-08 D.C.I.T C.C-II KOLKATA ) ) - VERSUS -. M/S. ASCU ARCH TIMBER PROTECTION LTD PAN : AACCA 4068R ( * / APPELLANT ) ( + * / RESPONDENT ) * / FOR THE APPELLANT /SHRI P.K. CHAKRABORTY LD. JCIT/SR.DR + * / FOR THE RESPONDENT: / SHRI RAJEEVA KUMAR ADVOCATE LD.AR 1 2 /DATE OF HEARING : 31-07-2014 1 2 /DATE OF PRONOUNCEMENT: 31 -07-2014 / ORDER % 1 SHRI GEORGE MATHAN JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) CENTRAL-III KOLKATA IN APPEAL NO. 138/CC-II/CIT(A)C-III/09-10/KOL DATED 12.10.2012 F OR THE ASSESSMENT YEAR 2007-08. 2. SHRI P.K. CHAKRABORTY LEARNED JCIT/SR.DR REPRE SENTED ON BEHALF OF THE REVENUE AND SHRI RAJEEVA KUMAR ADVOCATE LEARNED AR REPRESENTED ON BEHALF OF THE ASSESSEE. 3. AT THE TIME OF HEARING BEFORE US IT WAS SUBMITT ED BY SHRI RAJEEVA KUMAR ADVOCATE LEARNED AR FOR THE ASSESSEE THAT IN VIEW OF THE DECISION OF THE HONBLE SPECIAL BENCH [ITAT KOLKATA] IN THE CASE OF JCIT V S. PEERLESS DEVELOPERS LTD REPORTED IN (2006) 287 (AT) 153 THE TAX EFFECT IN T HE PRESENT CASE IS LESS THAN RS. 3 LAKHS. THE APPEAL OF THE REVENUE WAS LIABLE TO B E DISMISSED. ITA NO. 72/KOL/13-C-JM DCIT CC-II KOL VS. ASCU ARC H TIMBER PROTECTION LTD.. 2 4. IN REPLY THE LEARNED JCIT/SR.DR HAS VEHEMENTL Y SUPPORTED THE ORDER OF THE AO. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF THE DECISION OF THE SPECIAL BENCH OF THIS TRIBUNAL [ ITAT KOLKATA ] I N THE CASE OF PEERLESS DEVELOPERS LTD (REFERRED TO SUPRA) HAS HELD AS FOLL OWS:- 21. WE FIND THAT THE CENTRAL BOARD OF DIRECT TAXES VIDE INSTRUCTION NO.2 OF 2005 DATED OCTOBER 24 2005 ISSUES GUIDELI NES TO THE REVENUE AUTHORITIES WITH REGARD TO FILING OF APPEA L BEFORE THE TRIBUNAL HIGH COURT AND SUPREME COURT. FROM THE ABOVE INSTR UCTION IT IS EVIDENT THAT SINCE 1987 THE CENTRAL BOARD OF DIREC T TAXES IS INSTRUCTING ITS OFFICERS NOT TO FILE THE APPEAL WH ERE THE TAX EFFECT IS BELOW CERTAIN MONETARY LIMITS. VIDE INSTRUCTION NO . 1903 DATED OCTOBER 28 1992 THE MONETARY LIMIT WAS REVISED UPWARD AND THE OFFICERS WERE DIRECTED NOT TO FILE THE APPEAL BEFO RE THE INCOME-TAX APPELLATE TRIBUNAL WHERE THE TAX EFFECT WAS BELOW RS.25 000. THE ABOVE MONETARY LIMIT WAS FURTHER REVISED UPWARD BY INSTRUCTION NO.1979 DATED MARCH 27 2000 AND THE OFFICERS WERE DIRECTED NOT TO FILE THE APPEAL TO INCOME-TAX APPELLATE TRIBUNAL WH ERE THE TAX EFFECT IS BELOW RS. 1 LAKH. THEREAFTER IN PARTIAL MODIFICA TION OF THE ABOVE INSTRUCTION THE BOARD VIDE INSTRUCTION NO.2/2005 DATED OCTOBER 24 2005 HAS FURTHER RAISED THE ABOVE MONETARY LIMIT T O RS. 2 LAKHS WITH THE SAME DIRECTIONS. THUS THE CENTRAL BOARD OF DI RECT TAXES SINCE 1987 HAS NOT ONLY TAKEN A CONSISTENT APPROACH OF I NSTRUCTING ITS OFFICERS FOR NOT FILING THE APPEAL WHERE THE TAX E FFECT IS BELOW THE MONETARY LIMIT BUT SUCH MONETARY LIMIT IS ALSO REVISED UPWARD FROM TIME TO TIME. THE CIRCULAR UNDER INSTRUCTION NO. 1979 DATED MARCH 27 2000 WAS CONSIDERED BY THE BOMBAY HIGH COURT IN TH E CASE OF CAMCO COLOUR CO. [2002] 254 ITR 565 AND THEIR LORDSHIPS H ELD AT PAGE 568 AS UNDER:- IT APPEARS THAT DESPITE THE ABOVE CIRCULAR THE REVENUE HAS CHOSEN TO FILE THE PRESENT APPEAL KNOWING FULLY WELL THAT THE CORRIDORS OF THE COUR TS ARE FLOODED WITH PENDING LITIGATIONS. THE PRESENTATION OF THIS APPEAL IS QUITE CONTRARY TO THE INSTRUCTION IS SUED IN THE CIRCULAR WHICH IS BINDING ON THE REVENUE. IN THE ABOVE VIEW OF THE MATTER CONSIDERING THE INSTRUCTIONS ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES WE ARE SATISFIED THAT THE BOARD HAS TAKEN A POLICY DECISION NOT TO FILE APPEAL IN A TYPE OF CA SE IN HAND AND THE SAME IS BINDING ON THE REVENUE (APPELLANT HEREIN). IN THE RESULT WE DISMISS THIS APPEAL ON THIS COUNT IN LIMINE WITH NO ORDER AS TO COSTS . ITA NO. 72/KOL/13-C-JM DCIT CC-II KOL VS. ASCU ARC H TIMBER PROTECTION LTD.. 3 22. IN THESE FACTS AND CIRCUMSTANCES OF THE CASE W E ARE OF THE CONSIDERED OPINION THAT THE TAX EFFECT IN THE PRESE NT YEAR UNDER APPEAL IS LESS THAN RS. 1 LAKH FOLLOWING THE INSTRUCTION N O.1979 DATED MARCH 27 2000 THE PRESENT APPEAL FILED BY THE REVENUE I S NOT MAINTAINABLE AND IS REQUIRED TO BE DISMISSED. WE DO SO. 6. IN VIEW OF THE SAID DECISION OF THE SPECIAL BEN CH ITAT KOLKATA IN THE CASE OF PEERLESS DEVELOPERS LTD (REFERRED TO SUPRA) THE APPEAL OF THE REVENUE STANDS DISMISSED ON ACCOUNT OF NO TAX EFFECT. 7. IN THE RESULT THE APPEAL OF THE REVENUE IN IT A NO.72/KOL/2013 FOR THE ASSESSMENT YEAR 2007-08 STANDS DISMISSED. 6 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT 31/7/ 2014 SD/- SD/- 1 +9 :9 / COPY OF THE ORDER FORWARDED TO: 1. . * / THE APPELLANT : D.C.I.T CC II KOLKATA AAYKAR BHAWAN (POORVA) 110 SHANTIPALLY KOL-107.. 2 + * / THE RESPONDENT- M/S.ASCU ARCH TIMBER PROTECTIO N LTD P-46A RADHA BAZAR ST. KOL-1. 3 4. . / THE CIT ( )/ THE CIT(A) 5 . + / DR KOLKATA BENCH 6 . GUARD FILE . 9 +/ TRUE COPY / BY ORDER /ASSTT REGISTRAR ** PRADIP SPS ( . . ) ( P.K.BANSAL ACCOUNTANT MEMBER ) ( % 1 ) (GEORGE MATHAN JUDICIAL MEMBER) ( (( ( 2 2 2 2 ) )) ) DATE 31/7/2014