JCIT, (OSD), CIR-1(1), KOLKATA, Kolkata v. M/s AI Champdany Industries Ltd., Kolkata

ITA 968/KOL/2016 | 2007-2008
Pronouncement Date: 20-11-2017 | Result: Dismissed

Appeal Details

RSA Number 96823514 RSA 2016
Assessee PAN AACCA4860D
Bench Kolkata
Appeal Number ITA 968/KOL/2016
Duration Of Justice 1 year(s) 6 month(s) 14 day(s)
Appellant JCIT, (OSD), CIR-1(1), KOLKATA, Kolkata
Respondent M/s AI Champdany Industries Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 20-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 20-11-2017
Assessment Year 2007-2008
Appeal Filed On 06-05-2016
Judgment Text
1 ITA NO.968/KOL/2016 M/S.AI CHAMPDANY INDUSTRIES LTD . A.Y.2007-08 IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D KOL KATA [BEFORE HONBLE SHRI N.V.VASUDEVAN JM & DR.ARJUN LAL SAINI AM ] ITA NO.968/KOL/2016 ASSESSMENT YEAR : 2007-08 J.C.I.T. (OSD)CIRCLE-1(1) -VERSUS- M/S. AI CHAMP DANY INDUSTRIES LTD. KOLKATA KOLKATA (PAN:AACCA 4860 D) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI ARINDAM BHATTACHARJEE ADDL. CIT FOR THE RESPONDENT: SHRI SUBASH AGARWAL ADVOCATE DATE OF HEARING : 20.11.2017. DATE OF PRONOUNCEMENT : 20.11.2017 ORDER PER N.V.VASUDEVAN JM: THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER DATED 29.02.2016 OF CIT(A)-1 KOLKATA RELATING TO A.Y.2007-08. 2. RECENTLY THE CBDT HAS ISSUED CIRCULAR NO. 2 1/2015 DATED 10TH DECEMBER 2015 WHEREBY THE MONETARY LIMITS FOR FILING OF AP PEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT HAVE BEEN INCREASED AS MEASURE FOR REDUCING LITIGATION. THE REVISED MONETARY LIMITS LAID DOWN IN PARA-3 OF THIS CIRCULAR AND THE MANNER OF C OMPUTING TAX EFFECT AS LAID DOWN IN PARA-4 OF THIS CIRCULAR ARE AS FOLLOWS: 3. HENCEFORTH APPEALS/ SLPS SHALL NOT BE FILED I N CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - SL. NO. APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10 00 000/- 2. BEFORE HIGH COURT 20 00 000/- 3. BEFORE SUPREME COURT 25 00 000/- 2 ITA NO.968/KOL/2016 M/S.AI CHAMPDANY INDUSTRIES LTD . A.Y.2007-08 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILIN G OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE 'TAX EFFECT' MEANS THE DIFFERE NCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CH ARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRED TO AS 'D ISPUTED ISSUES'). HOWEVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS T HE ISSUE UNDER DISPUTE THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RE TURNED LOSS IS REDUCED OR ASSESSED AS INCOME THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX O N DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 3. IN PARA-10 OF THE SAID CIRCULAR IT HAS FURTHER BEEN CLARIFIED THAT THE REVISED MONETARY LIMITS WILL APPLY RETROSPECTIVELY. THE RE LEVANT PARA-10 OF THE CIRCULAR READS THUS: 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. IN THE PRESENT CASE THE TAX EFFECT IN THIS AP PEAL BY THE REVENUE IS LESS THAN RS.10 00 000/-. THOUGH THIS APPEAL HAD BEEN FILED BY THE REVENUE ON 06.05.2016 AND WAS WITHIN THE MONETARY LIMIT IN THE FORM OF TAX EF FECT FOR FILING APPEALS BEFORE TRIBUNAL IN VIEW OF PARA-10 OF THE CIRCULAR OF CBD T EVEN SUCH APPEALS WILL BE GOVERNED BY THE NEW MONETARY LIMITS LAID DOWN IN TH E CBDT CIRCULAR NO.21/2015 REFERRED TO ABOVE. 5. IT IS A SETTLED LAW THAT THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX CO URT IN THE CASE OF COMMISSIONER OF CUSTOMS VS INDIAN OIL CORPORATION L TD. REPORTED IN 267 ITR 272 WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISI ONS OF THE APEX COURT WITH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID DOWN THA T WHEN A CIRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUN D BY IT AND CANNOT BE ALLOWED TO 3 ITA NO.968/KOL/2016 M/S.AI CHAMPDANY INDUSTRIES LTD . A.Y.2007-08 PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY T O THE TERMS OF THE STATUTE. THE APPEAL UNDER CONSIDERATION HAS CERTAINLY BEEN FILED CONTRA RY TO THE CIRCULAR ISSUED BY THE CBDT CIRCULAR NO.21 DATED 10.12.2015. 5.1. IN THE EVENT THE REVENUE FINDS AT A LATER POIN T OF TIME THAT THE TAX EFFECT IN THE APPEAL IS MORE THAN RS.10 LAKHS OR DESPITE LOW TAX EFFECT THE APPEAL OF THE REVENUE IS MAINTAINABLE THE REVENUE IS AT LIBERTY TO MOVE TH IS TRIBUNAL FOR RECALL OF THIS ORDER. 6. IN VIEW OF THE ABOVE WE HOLD THAT THE APPEAL FI LED BY THE DEPARTMENT AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A) IS CONTRARY T O THE POLICY DECISION OF THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY THE DEPA RTMENT IS DISMISSED IN LIMINE . 7. IN THE RESULT THE APPEAL BY THE REVENUE IS DI SMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON 20.11.2017. SD/- SD/- [DR.A.L.SAINI] [ N.V.VASUDEVAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 20.11.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.M/S. AI CHAMPDANY INDUSTRIES LTD. 25 PRINCEP ST REET KOLKATA-700072. 2.J.C.I.T.(OSD) CIRCLE-11 KOLKATA.. 3. CIT(A)-1 KOLKATA. 4. CIT-1 KOLKATA. 5. CIT(DR) KOLKATA BENCHES KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O. ITAT KOLKATA BENCHES 4 ITA NO.968/KOL/2016 M/S.AI CHAMPDANY INDUSTRIES LTD . A.Y.2007-08