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[Cites 8, Cited by 3]

Income Tax Appellate Tribunal - Kolkata

Dcit,Circle - 11(1), Kolkata, Kolkata vs M/S. J. J. Exporters Ltd., Kolkata on 30 July, 2018

        IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH: KOLKATA
                 [Before Shri A.T. Varkey, JM & Shri M. Balaganesh, AM]

ITA No. &A.Y.              Revenue/Rep. by                   Vs    Assessee/PAN/Rep. by

            (1)                          (2)                 (3)                      (4)
40/Kol/2018                ITO, Ward-63(4), Kolkata, Rep.          Smt. Vinita Goel
A.Y.2009-10                by Shri Saurabh Kumar, Addl.            ADNPG 2608 Q, Rep by None.
                           CIT Sr. DR                              Flat No. 3A & 3B, 3rd Floor, No.164,
                                                                   Block-P, New Alipore, Kolkata-700053.
1824/Kol/2017              ITO, Ward-34(1), Kolkata, Rep.          M/s Barojalingah Tea Co.
A.Y.2013-14                by Shri Saurabh Kumar, Addl.            AACFB 7772 N, Rep. by None
                           CIT Sr. DR                              12, India Exchange Place, Kolkata-
                                                                   700001.
389-394/Kol/2018           ACIT, Circle-26(1), Kolkata,            Shri Tapan Kumar Karmakar
A.Ys. 2007-08 to 2012-13   Rep. by Shri Saurabh Kumar,             AIOPK 5385 Q, Rep. by None.
                           Addl. CIT Sr. DR                        105, N.S. Road, Mitragunj Bazar,
                                                                   Jaynagar, 24 Parganas (South), Pin-
                                                                   743337.
195& 196/Kol/2018          JCIT(OSD), Circle-13(1),                M/s Megh Promoters Pvt. Ltd.
A.Ys.2013-14 & 2014-15     Kolkata, Rep. by Shri Saurabh           AAKCS 3346 J, Rep. by Shri Sunil
                           Kumar, Addl. CIT Sr. DR.                Surana, AR.
                                                                   Tikamani Market, 1F, K.C. Roy
                                                                   Choudhury Road, P.O. Belur Math,
                                                                   Howrah-711202
438/Kol/2018               ACIT, Circle-25, Kolkata, Rep.          Shri Dwarka Das Sarda
A.Y.2013-14                by Shri Saurabh Kumar, Addl.            AKUPS 5256 Q, Rep. by Shri Sunil
                           CIT Sr. DR                              Surana, AR.
                                                                   Flat No. 6A, TUDOR, Merlin Residency,
                                                                   26, Prince Anwar Shah Road, Kolkata-
                                                                   700033.
1364/Kol/2018              DCIT, Circle-11(1), Kolkata,            M/s J.J. Exporters Ltd.
A.Y.2010-11                Rep. by Shri Saurabh Kumar,             AAACJ 6722 H, Rep. by Shri S.
                           Addl. CIT Sr. DR                        Jhajharia, AR.
                                                                   23C, Ashutosh Chowdhury Avenue,
                                                                   Kolkata-700019.
380/Kol/2018               ITO, Ward-63(4), Kolkata, Rep.          Vinay Sareka
A.Y.2010-11                by Shri Saurabh Kumar, Addl.            AMPPS 3554 E, Rep. by Shri Subash
                           CIT Sr. DR.                             Agarwal, Advocate.
                                                                   29A, Shyam Sadan, Ramkrishna
                                                                   Samadhi Road, Kolkata-700054.
1212/Kol/2017              ITO, Ward-22(2), Kolkata, Rep.          M/s K.B. Medical Agency
A.Y.2013-14                by Shri Saurabh Kumar, Addl.            AAGFK 6550 P, Rep. by Shri Sunil
                           CIT Sr. DR                              Surana, AR.
                                                                   55/F-9, B.R.B. Basu, 2nd Floor, Room
                                                                   No. H-14, Mehta Building, Kolkata-01.
1609/Kol/2017              DCIT, CC-2(2), Kolkata, Rep.            Shri Sushil Kumar Agarwal
A.Y.2013-14                by Shri Saurabh Kumar, Addl.            ACZPA 5444 M, Rep. by None.
                           CIT Sr. DR                              14A, Rowland Road, Kolkata-700020.


1603/Kol/2017              DCIT, CC-2(2), Kolkata, Rep.            Sajjan Kumar Patwari (HUF)
A.Y.2013-14                by Shri Saurabh Kumar, Addl.            AAUPL 9647 E, Rep. by None
                           CIT Sr. DR                              7th Floor, Golabari , Howrah-711101.


426/Kol/2017               DCIT(IT), Circle-2(1), Kolkata,         Shri Samantak Chatterjee
A.Y. 2013-14               Rep. by Shri Saurabh Kumar,             AFYPC 4658 P, Rep. by Shri Navin
                           Addl. CIT Sr. DR                        Jain, AR.
                                                                   1/1/7, Nepal Bhattacharjee Street
                                                                   Kalighat, Kolkata-700026.
412/Kol/2017               ACIT, Circle-1(2), Kolkata,             Shri Milan Kumar Dey
                                                        2

A.Y.2013-14             Rep. by Shri Saurabh Kumar,        AIIPD 4857 C, Rep. by Shri Navin Jain,
                        Addl. CIT Sr. DR                   AR.
                                                           Madhav Nagar, Baudpur, Bhadrak,
                                                           Odisha-756181.
427/Kol/2017            DCIT(IT), Circle-2(1), Kolkata,    Shri Ujjwal Prakash
A.Y.2013-14             Rep. by Shri Saurabh Kumar,        ATSPP 1972 B, Rep. by Shri Navin
                        Addl. CIT Sr. DR                   Jain, AR.
                                                           C/o V.K. Sinha, Shanti Kunj, Saraswati
                                                           Nagar, Near Block Office, Steel City-
                                                           827013.
I.T.(SS)A. No.          DCIT, CC-2(2), Kolkata, Rep.       Beni Prasad Lahoti
124/Kol/2017            by Shri Saurabh Kumar, Addl.       AAUPL 9647 E, Rep. by Shri Rajeeva
A.Y.2010-11             CIT Sr. DR                         Kumar, Advocate.
                                                           Shree Shyam Garden, 7th Floor, 12,
                                                           Hardutta Rai Chamaria Road, 13,
                                                           Golabari, Howrah-711101.
624& 625/Kol/2018       ITO, Ward-14(4), Kolkata, Rep.     M/s Sunirman Residency Pvt. Ltd.
A.Y.2013-14 & 2014-15   by Shri Saurabh Kumar, Addl.       AAPCS 1409 K, Rep. by None.
                        CIT Sr. DR                         19/G, Barendra Para Dakshini, Jessore
                                                           Road, Barasat, Kolkata-700124, West
                                                           Bengal.
716/Kol/2018            ITO, Ward-31(1), Kolkata, Rep.     Veejay Impex
A.Y.2000-01             by Shri Saurabh Kumar, Addl.       AACFV 5247 L, Rep. by None.
                        CIT Sr. DR                         9th Floor, 69, Ganesh Chandra Avenue,
                                                           Kolkata-700013.
710/Kol/2018            ACIT, Circle-33, Kolkata, Rep.     Shyamal Kundu
A.Y. 2013-14            by Shri Saurabh Kumar, Addl.       AFTPK 0421 P, Rep. by None.
                        CIT Sr. DR                         100/72A,Jessore Road, Kolkata-700074.
782/Kol/2017            ACIT, Circle-4(1), Kolkata,        M/s James Warren Tea Ltd.
A.Y.2013-14             Rep. by Shri Saurabh Kumar,        AADCD 2743 H, Rep. by None.
                        Addl. CIT Sr. DR                   12, Pretoria Street, Kolkata-700071.
655/Kol/2017            DCIT(IT), Circle-2(1), Kolkata,    M/s Uponeeta Chakraborty
A.Y.2013-14             Rep. by Shri Saurabh Kumar,        AHLPC 9813 F, Rep. by Shri Navin
                        Addl. CIT Sr. DR                   Jain, AR.
                                                           39, Beckbagan Lower Range, Kolkata-
                                                           700019.
590/Kol/2018            ACIT, Circle-28, Kolkata, Rep.     Shri Kajal Biswas
A.Y. 2013-14            by Shri Saurabh Kumar, Addl.       AEUPB 8253 Q, Rep. by None.
                        CIT Sr. DR                         5, Dr. A.K. Paul Road, Behala
807/Kol/2017            DCIT, Circle-49(1), Kolkata,       Shri Sambhu Ghosh
A.Y.2010-11             Rep. by Shri Saurabh Kumar,        ADSPG 1678 B, Rep. by None.
                        Addl. CIT Sr. DR                   Prop. Swastik Enterprise, 85, S.K. Deb
                                                           Road, Kolkata-700048.
276/Kol/2018            ITO, Ward-40(3), Kolkata, Rep.     Elegant Enterprise
A.Y.2014-15             by Shri Saurabh Kumar, Addl.       AABFE 9422 H, Rep. by None.
                        CIT Sr. DR                         29, Rabindra Sarani, Kolkata-700073.
245/Kol/2018            ACIT, Circle-10(2), Kolkata,       M/s South City Projects (Kolkata) Ltd.
A.Y.2013-14             Rep. by Shri Saurabh Kumar,        AAACD 8933 A, Rep. by None.
                        Addl. CIT Sr. DR                   375, Prince Anwar Shah Road, Kolkata-
                                                           700068.
326/Kol/2018            ACIT, Circle-40, Kolkata, Rep.     Girdharilal Arun Kumar Family Trust
A.Y.2010-11             by Shri Saurabh Kumar, Addl.       AAAAG 2582 N, Rep. by None.
                        CIT Sr. DR                         1, Clyde Row, Kolkata-700022.
251/Kol/2018            DCIT, Circle-11(1), Kolkata,       M/s JCT Ltd.
A.Y.1996-97             Rep. by Shri Saurabh Kumar,        AAACJ 6733 E, Rep. by None.
                        Addl. CIT Sr. DR                   Thaper House, 25, Brabourn Road,
                                                           Kolkata-700001.
255/Kol/2018            DCIT, Circle-12(1), Kolkata,       BMA Wealth Creators Ltd.
A.Y.2014-15             Rep. by Shri Saurabh Kumar,        AACCB 5141 L, Rep. by None.
                        Addl. CIT Sr. DR                   1st Floor, Paul Mansion, 6, Bishop
                                                           Lefroy Road, Kolkata-700020.
2
                                                            3

914/Kol/2017                ITO(IT), Ward-Kolkata, Rep.           M/s Bata India Ltd.
A.Y.2003-04                 by Shri Saurabh Kumar, Addl.          AABCB 1043 Q, Rep. byNone
                            CIT Sr. DR                            6A, S.N. Banerjee Road, Kolkata-
                                                                  700013.
2111/Kol/2017               ITO, Ward-3(3), Darjeeling,           Shri Vijay Pari
A.Y.2014-15                 Rep. by Shri Saurabh Kumar,           AFLPP 6535 K, Rep. by None.
                            Addl. CIT Sr. DR                      Vernon Lodge, Coochbehar Road, P.O +
                                                                  Dist. Darjeeling, Pin-734101.
2085/Kol/2017               ACIT, Circle-10(2), Kolkata,          M/s Durgapur Chemicals Ltd.
A.Y.2011-12                 Rep. by Shri Saurabh Kumar,           AABCD 1831 A, Rep. by None.
                            Addl. CIT Sr. DR                      6, Little Russel Street, Kolkata-700071.
1160/Kol/2017,              DCIT, Circle-15(2), Kolkata,          M/s Stewarts & Lloyds of India Ltd.
1162 & 1163/Kol/2017        Rep. by Shri Saurabh Kumar,           AAECS 0445 G, Rep. by None.
A.Y.2005-06, 2008-09 &      Addl. CIT Sr. DR                      41, Chowringhee Road, Kolkata-700071.
2009-10
548/Kol/2017                ACIT, Circle-50(1), Kolkata,          Jashojit Mukherjee
A.Y.2012-13                 Rep. by Shri Saurabh Kumar,           AFAPM 7208 R, Rep. by None.
                            Addl. CIT Sr. DR                      AA-81, Sector-I, Salt Lake City,
                                                                  Kolkata-700064.
2061/Kol/2017               ACIT, CC-3(3), Kolkata, Rep.          M/s New Horizons Ltd.
A.Y.2014-15                 by Shri Saurabh Kumar, Addl.          AAACN 8505 C, Rep. by None.
                            CIT Sr. DR                            31/2, Topsia Road, South, Kolkata-
                                                                  700046.

                         Date of hearing      :            30.07.2018
                         Date of pronouncement:            30.07.2018

                                        ORDER

Per Bench:

1. These appeals of the revenue arise out of the various orders of the Learned CIT(A) against the orders of assessment framed u/s 147 / 143(3) / 263/ 144 / 144C / 271(1)(c) / 153A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act').
2. Recently the CBDT has issued Circular No. 3/2018 dated 11.07.2018, whereby the monetary limits for filing of appeals 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 computing tax effect as laid down in para- 4 of this Circular are as follows:
"3 . Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Sl.
No. Appeals/SLP's in Income-tax matters Monetary Limit (in Rs)
1. Before Appellate Tribunal 20,00,000/-
3 4
2. Before High Court 50,00,000/-
3. Before Supreme Court 1,00,00,000/-
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 difference between the tax on the total income assessed and the tax that would have been chargeable 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 'disputed issues'). Further, 'tax effect' shall be tax including applicable surcharge and cess. 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 the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on 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-13 of the said circular it has further been clarified that the revised monetary limits will apply retrospectively. The relevant para-13 of the Circular reads thus:

"13. This Circular will apply to SLPs/appeals/cross objections/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.

4. In the present case, the tax effect in all these appeals by the revenue are less than Rs.20,00,000/-. Though these appeals had been filed by the revenue on various dates and were within the monetary limit in the form of tax effect for filing appeals before Tribunal, in view of para-13 of the Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.3/2018 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 Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard 4 5 to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute.

5.1. In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.20 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

6. In view of the above, we hold that the appeals filed by the Department, against the impugned orders of the Ld. CIT(A), are contrary to the policy decision of the Department and as such the appeals filed by the Department are dismissed in limine.

7. In the result, the appeals by the Revenue are dismissed.


                       Order pronounced in the Court on 30.07.2018


                Sd/-                                                        Sd/-
          [A.T. Varkey]                                              [ M.Balaganesh ]
        Judicial Member                                             Accountant Member

Dated    :   30.07.2018

SB, Sr. PS

Copy of the order forwarded to:
1. Appellant-
2. Respondent-
3. CIT(A)-                         4. CIT-Kolkata
5. CIT(DR), Kolkata Benches, Kolkata.


         True copy
                                                                          By Order


                                                            Senior Private Secretary
                                           Head of Office/D.D.O., ITAT, Kolkata Benches




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