DCIT, CC-XIII, KOLKATA, Kolkata v. M/S. Jai Balaji Industries Ltd. (Formerly M/S. Jai Balaji Sponge Ltd.), Kolkata

ITSSA 126/KOL/2014 | 2011-2012
Pronouncement Date: 28-09-2016

Appeal Details

RSA Number 12623516 RSA 2014
Assessee PAN AAACJ7961J
Bench Kolkata
Appeal Number ITSSA 126/KOL/2014
Duration Of Justice 2 year(s) 2 month(s) 11 day(s)
Appellant DCIT, CC-XIII, KOLKATA, Kolkata
Respondent M/S. Jai Balaji Industries Ltd. (Formerly M/S. Jai Balaji Sponge Ltd.), Kolkata
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 28-09-2016
Appeal Filed By Department
Bench Allotted B
Tribunal Order Date 28-09-2016
Date Of Final Hearing 26-09-2016
Next Hearing Date 26-09-2016
Assessment Year 2011-2012
Appeal Filed On 17-07-2014
Judgment Text
IT(SS) NO.126/KOL/2014-B-JM M/S. JAI BALAJI INDUSTRIES LTD-T.E 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH KOLKATA BEFORE : SHRI WASEEM AHMED ACCOUNTANT MEMBER AND SHRI S.S.VISWAN ETHRA RAVI JUDICIAL MEMBER IT(SS) NO. 126/KOL/2014 A.Y 2011-12 DY. COMMISSIONER OF INCOME TAX VS. M/S. JAI BAL AJI INDUSTRIES LTD CC-XIII KOLKATA PAN: AAACJ 7961J (APPELLANT) (R ESPONDENT) FOR THE APPELLANT/DEPARTMENT: SHRI G. MALLIKARJUN CIT LD. SR.DR FOR THE RESPONDENT/ASSESSEE: SHRI AMIT KUMAR LAL ACA ADVOCATE LD.A/R DATE OF HEARING: 28-09-2016 DATE OF PRONOUNCEMENT: 28-09-201 6 ORDER SHRI S.S.VISWANETHRA RAVI JM : THIS APPEAL OF THE REVENUE ARISES OUT OF THE ORDER OF THE LEARNED CIT(A) CENTRAL-II KOLKATA IN APPEAL NO. 85/CC-XIII/CIT(A )/C-II/13-14 DATED 22-05-2014 FOR THE ASSESSMENT YEAR 2010-11. 2. IT IS SEEN FROM THE PERUSAL OF THE RECORDS THA T THE TOTAL TAX EFFECT ON THE ADDITIONS DISPUTED BEFORE US IS ADMITTEDLY BELOW THE TAX EFFE CT LIMIT PRESCRIBED BY CBDT VIDE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 FOR PREFERR ING APPEAL(S) BEFORE TRIBUNAL BY THE REVENUE. IT WILL BE PERTINENT TO REPRODUCE THE R ELEVANT PORTION OF THE SAID CIRCULAR NO. 21 / 2015 DATED 10.12.2015 :- IT(SS) NO.126/KOL/2014-B-JM M/S. JAI BALAJI INDUSTRIES LTD-T.E 2 3. HENCEFORTH APPEALS / SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER:- S.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/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING 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 B EEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME I N RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREI NAFTER REFERRED TO AS DISPUTED ISSUES). HOWEVER THE TAX WILL NOT INCLUDE ANY I NTEREST THEREON EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOM E THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CAS E OF PENALTY ORDERS THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDU CED IN THE ORDER TO BE APPEALED AGAINST. 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES I N THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESSEE THE DISPUTED ISSUES ARI SE IN MORE THAN ONE ASSESSMENT YEAR APPEAL CAN BE FILED IN RESPECT OF SUCH ASSE SSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EX CEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN OTHER WORDS HENCEFORTH APPEALS CAN BE FILED ON LY WITH REFERENCE TO THE TAX EFFECT IN THE RELEVANT ASSESSMENT YEAR. HOWEVER IN CASE OF A COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLV ES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR APPEAL SHALL BE FILED IN RESPECT OF ALL SUCH ASSESSMENT YEARS EVEN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S) I F IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEED S THE MONETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER / JUDGEMENT INVOLVE S MORE THAN ONE ASSESSEE EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. IT(SS) NO.126/KOL/2014-B-JM M/S. JAI BALAJI INDUSTRIES LTD-T.E 3 8. ADVERSE JUDGEMENTS RELATING TO THE FOLLOWING ISS UES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT : (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE ARE UNDER CHALLENGE OR (B) WHERE BOARDS ORDER NOTIFICATION INSTRUCTION OR C IRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS / BANK ACCOUNTS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PEN DING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN / NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 2.1 WE FIND THAT INTENTION BEHIND THE CIRCULAR NO.2 1/2015 DATED 10-12-2015 NEEDS TO BE UNDERSTOOD IN THE FOLLOWING PERSPECTIVE:- 2.2 ON PERUSAL OF THE CIRCULAR NO. 21 / 2015 DATED 10.12.2015 AND THE MATERIALS AVAILABLE ON RECORD WE COULD NOT SEE WHETHER THE I MPUGNED CASE FALLS UNDER ANY OF THE EXCEPTIONS CONTEMPLATED IN THE SAID CIRCULAR. WE A LSO FIND THAT THE CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL A PPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. WE FIND THAT THE CIRCULAR IS BINDING ON THE T AX AUTHORITIES. THIS POSITION HAS BEEN CONFIRMED BY THE HONBLE APEX COURT IN THE CASE OF COMMISSIONER OF C USTOMS VS INDIAN OIL CORPORATION LTD REPORTED IN 267 ITR 272 (SC) WHEREIN THEIR LORDSHIPS EXAMINED THE EARLIER DECISIONS OF THE APEX COURT WI TH REGARD TO BINDING NATURE OF THE CIRCULARS AND LAID DOWN THAT WHEN A CIRCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUND BY IT AND CANNOT BE ALLOW ED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRARY TO THE TERMS OF THE STATUTE. HENCE WE HOLD THAT THE APPEAL(S) OF THE REVENUE DESERVE TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.21 / 2015 DATED 10.12.2015. ACCORDINGLY THIS BEING A LOW TAX EFFE CT CASE WE DISMISS THE APPEAL OF THE IT(SS) NO.126/KOL/2014-B-JM M/S. JAI BALAJI INDUSTRIES LTD-T.E 4 REVENUE IN LIMINE AS UNADMITTED WITHOUT GOING IN TO THE MERITS OF THE CASE. THE APPEAL OF THE REVENUE IS DISMISSED. 3. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 -09-2016 1. THE APPELLANT/DEPARTMENT: THE DCIT CC-XIII KOL AAYKAR BHAVAN POORVA 110 SHANTI PALLI E M BYE PASS 4 TH FLOOR KOLKATA-107. 2 THE RESPONDENT/ASSESSEE- M/S. JAI BALAJI INDUSTR IES LTD (FORMERLY KNOWN AS M/S. JAI BALAJI SPONGE LTD) PAN AAACJ7961J 5 BENTINCK STREET KOL-1. 3 /THE CIT 4.THE CIT(A ) 5. DR KOLKATA BENCH 6. GUARD FILE. TRUE COPY BY ORDER ASSTT REGISTRAR **PRADIP/SPS SD/- WASEEM AHMED ACCOUNTANT MEMBER SD/- S.S.VISWANETHRA RAVI JUDICIAL MEMBER DATE 28-09-2016 COPY OF THE ORDER FORWARDED TO: