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[Cites 2, Cited by 11]

Income Tax Appellate Tribunal - Kolkata

Dcit, Circle-10(1), Kolkata, Kolkata vs M/S Bridge & Roof Co. (India) Ltd., ... on 31 July, 2018

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

Sl.   ITA No. & A.Y.        Revenue/Rep. by            Vs    Assessee/PAN/Rep. by (As per power
No.                                                          filed)
               (1)                    (2)              (3)
                                                                                   (4)
1.    1402/Kol/2013         ITO, Wd-8(2), Kolkata            M/s. Diligent Investment Pvt. Ltd., 32,
      AY. 2005-06           Rep. by Sh. Saurabh              Chowringhee Road, Kolkata-700 071
                            Kumar, Addl.CIT, Sr.             (PAN: AAACD3772A), Rep. by Shri
                            DR,                              Subash Agarwal, Advocate
2.    601/Kol/2017          ACIT(IT), Cir-1(1),              Shri Aninda Bhattacharji. 169/PL/23,
      AY. 2013-14           Kolkata, Rep. by Sh.             Parui Housing Estate, Ho Chi Minh
                            Saurabh Kumar, Addl.CIT,         Sarani,            Kolkata-700        061.
                            Sr. DR                           PAN:ADZPB9606R, rep. by Shri Navin
                                                             Jain, AR,
3.    629/Kol/2017          DCIT, Cir-8(1), Kolkata          M/s. Multi Serve Rolls Ltd., 77/1A, Park
      AY. 2010-11           Rep. by Sh. Saurabh              Street, 2nd floor, Room No. 7, Kolkata-
                            Kumar, Addl.CIT, Sr.             700 071. PAN: AABCM8075D, rep. by
                            DR,                              None
4.    2300/Kol/2017         ACIT, Cen. Cir-2(3),             M/s. Skipper Furnishing Pvt. Ltd.,
      AY. 2013-14           Kolkata                          46/31/1, Gariahat Road, Kolkata-700 029.
                            Rep. by Sh. Saurabh              PAN:AAICS4009A, rep. by Shri Amit
                            Kumar, Addl.CIT, Sr.             Agarwal, AR
                            DR,
5.    2352/Kol/2017         ACIT (OSD), Ward-12(3),          M/s. Khetawat Builders Pvt. Ltd., 19A,
      AY.2014-15            Kolkata                          Sarat Bose Road, Kolkata-700 020.
                            Rep. by Sh. Saurabh              PAN:AABCK1242L), rep. by None
                            Kumar, Addl.CIT, Sr.
                            DR,
6.    2447/Kol/2017         ITO, Wd-48(4),Kol.               Smt. Lalita Devi Verma, 233/2, Bellilious
      AY. 2013-14           Rep. by Sh. Saurabh              Road, Howrah-711101,
                            Kumar, Addl.CIT, Sr.             PAN:AFUPV5433R, rep. by None
                            DR,
7.    1905/Kol/2017         DCIT, Cir-5(1)Kol.               M/s. Somany Ceramics Ltd., 2, Red Cross
      AY. 2008-09           Rep. by Sh. Saurabh              Place, Kolkata-700 001.
                            Kumar, Addl.CIT, Sr.             PAN: AAECS0763K, Rep. by Shri P. K.
                            DR,                              Sanghari, FCA
8.    429/Kol/2017          DCIT, Cir-2(1),Kol.              Shri Sanjoy Chatterjee, 2A, Shitala Tala
      AY. 2013-14           Rep. by Sh. Saurabh              Lane, Rishra, Hooghly-712248, PAN:
                            Kumar, Addl.CIT, Sr.             AEZPC2746Q, Rep. by Shri Navin Jain,
                            DR,                              AR
9.    474/Kol/2017          ACIT,Cen Cir-2(3),               Shri Manoj Kumar Gupta, 36H,
      AY. 2013-14           Kolkata                          Tollygunge Circular Road, Kolkata-700
                            Rep. by Sh. Saurabh              053, PAN:AGRPG1199B, Rep. by Shri
                            Kumar, Addl.CIT, Sr.             Amit Agarwal, AR
                            DR,
10.   WTA 16/Kol/2017       ACIT, Cir-11(2),Kol.             M/s. Martin Burn Limited, 1, R. N.
      AY. 1997-98           Rep. by Sh. Saurabh              Mukherjee Road, Kolkata-700 001.
                            Kumar, Addl.CIT, Sr. DR          PAN:AABCM9913A, Rep. by Shri
                                                             Pranabesh Sarkar, Advocate
11.   1954/Kol/2016         ITO, Ward-31(4), Kolkata         Shri Rajat Kumar Majumder, 36/B,
      AY. 2012-13           Rep. by Sh. Saurabh              Paddapukur Road, Kolkata-700 020,
                            Kumar, Addl.CIT, Sr. DR          PAN:AEFPM6217E), Rep. by Shri
                                                             Sharad Mohata, FCA
12.   201/Kol/2017          ACIT, Cir-2(2),Kolkata.          M/s. Peerless Securities ltd., 1,
      AY. 2012-13           Rep. by Sh. Saurabh              Chowringhee Square, 2nd floor, Kolkata-
                            Kumar, Addl.CIT, Sr. DR          700059, PAN:AABCP5069Q), Rep. by
                                                     2

                                                          Shri Sanjay Bhattacharjee, AR
13.   1631/Kol/2014            ITO, Ward-28(2), Kolkata   Shri Sujit Kumar Bhagat, 53/31, Prince
      AY. 2007-08              Rep. by Sh. Saurabh        Anwar Shaw Road, Near Amarpali Santi
                               Kumar, Addl.CIT, Sr. DR    Apartment, Kolkata-68,
                                                          PAN:ADTPB8219J, Rep. by Ankit Jalan,
                                                          AR
14-   2030 to 2034/Kol/2016    DCIT, Cir-10(1), Kolkata   M/s. Bridge & Roof Co. (India) Ltd., 2/1,
18.   AY. 2006-07,2008-09,     Rep. by Sh. Saurabh        Russel Street, 5th floor, Kolkata-700 071,
      2010-11,2012-13, 2013-   Kumar, Addl.CIT, Sr. DR    PAN: AABCB3166E), Rep. by None
      14
19-   IT(SS)A 92&93/K/2015     DCIT, Cen. Cir-3(3),       Shri Shyama Prasad Murarka, 1/C,
20    AY. 2006-07 & 2007-08    Kolkata                    Mandeville Garden, Kolkata-700 019,
                               Rep. by Sh. Saurabh        PAN:AFCPM6318S, Rep. by N o n e
                               Kumar, Addl.CIT, Sr. DR
21.   1383/Kol/2016            DCIT, Cir-10(1), Kolkata   M/s. Rosewood Projects Pvt. Ltd., 63/1,
      AY. 2013-14              Rep. by Sh. Saurabh        Charu Chandra Place (East), Kolkata-33,
                               Kumar, Addl.CIT, Sr. DR    PAN: AABCR7243Q), Rep. by Shri
                                                          Manoj Kataruka, Advocate
22.   1493/Kol/2016            ACIT, Cir-10(2), Kolkata   M/s. Pilot Consultants Ltd., 13, Mahendra
      AY. 2007-08              Rep. by Sh. Saurabh        Road, Kolkata-700 025,
                               Kumar, Addl.CIT, Sr. DR    PAN:AABCP6293N, Rep. by Shri Subash
                                                          Agarwal, Advocate
23.   792/Kol/2015             ITO, Ward-40(2), Kolkata   M/s. Sribhumi Publishing Co., 79,
      AY. 2007-08              Rep. by Sh. Saurabh        Mahatma Gandhi Road, Kolkata-700 009
                               Kumar, Addl.CIT, Sr. DR    PAN: AAMFS6690N, Rep. by Shri Mihir
                                                          Bandyopadhyay, AR
24.   1257/Kol/2015            ACIT, Cir-39,Midnapore     M/s. Gold & Silver House, C/o S. N.
      AY. 2011-12              Rep. by Sh. Saurabh        Ghosh & Associates, Advocates, Seven
                               Kumar, Addl.CIT, Sr. DR    Brothers Lodge, P.O. Buroshibtala, P.S.
                                                          Chinsurah, Dist. Hooghly-712105.
                                                          PAN:AACFG7928F, Rep. by Shri
                                                          Somnath Ghosh, Advocate
25.   1731/Kol/2016            ACIT, Cir-34, Kolkata      Shri Dilip Kr. Nahata, 196, Old China
      AY 2005-06               Rep. by Sh. Saurabh        Bazar Street, Kol-1, PAN:ABPPN7782E,
                               Kumar, Addl.CIT, Sr. DR    Rep. by None
26.   2338/Kol/2013            ITO, Ward-2(2), Asansol    Shri Sandeep Kumar Madhogaria, Piramal
      AY 2009-10               Rep. by Sh. Saurabh        Sagarmal, Station Road, Barakar-713324,
                               Kumar, Addl.CIT, Sr. DR    Dist. Burdwan, PAN:AJMPM4041L, Rep.
                                                          by Shri Somnath Ghosh, Advocate
27-   338/Kol/2014 & CO        ITO, Ward-12(2), Kolkata   M/s. N. N. Saha & Sons Agr Pvt. Ltd.,
28.   51/Kol/2015              Rep. by Sh. Saurabh        Narayanpur Battala, Rajarhat, Gopalpur,
      AY. 2009-10              Kumar, Addl.CIT, Sr. DR    Kolkata-700 136 PAN:AACCN7266N,
                                                          Rep. by Shri Subash Agarwal, Advocate
29.   2450/Kol/2016            DCIT, circle-2, Siliguri   M/s. Radha Trading Co., Satish Mansion,
      AY. 2010-11              Rep. by Sh. Saurabh        Sevoke road, Siliguri-734001
                               Kumar, Addl.CIT, Sr. DR    PAN:AADFR2443M, Rep. by None
30.   572/Kol/2015             DCIT, Cir-63, Kolkata      Shri Satyanarayan Jalan, 1, Netaji Subhas
      AY. 2009-10              Rep. by Sh. Saurabh        Road, 1st Floor, Kolkata-700 001, PAN:
                               Kumar, Addl.CIT, Sr. DR    AAKPJ4048B, Rep. by Shri Arvind
                                                          Agarwal, Advocate
31.   958/Kol/2016             ITO, Ward-31(3), Kolkata   Shri Ankit Agarwal, 227/2, AJC Bose
      AY. 2010-11              Rep. by Sh. Saurabh        Road, Kolkata-700020,
                               Kumar, Addl.CIT, Sr. DR    PAN:AIBPA6657N, Rep. by Shri Miraj
                                                          D. Shah, AR.
2
                                                          3

32.   362/Kol/2016               ACIT, Circle-49, Kolkata             Shri Nikhil Chandra Mitra, 34,
      AY. 2010-11                Rep. by Sh. Saurabh                  Chawlpatty Road, Baguiati, Kolkata-59,
                                 Kumar, Addl.CIT, Sr. DR              PAN: AHXPM9169L, Rep. by shri
                                                                      Subhas Agarwal, Advocate
33.   2367/Kol/2016              DCIT, C.C -4(2),Kolkata              M/s. Bhadreswar Rice Mill, Vill&P.O.
      AY 2010-11                 Rep. by Sh. Saurabh                  Paraj, Burdwan, PAN: AAGFB2714A,
                                 Kumar, Addl.CIT, Sr. DR              Rep. by Shri Arvind Agarwal, Advocate

                       Date of hearing:                  31.07.2018
                       Date of pronouncement:            31.07.2018

                                        ORDER
Per Shri A. T. Varkey, JM:

These appeals of the revenue and the only CO in ITA No.338/Kol/2014 arise out of the various orders of the Learned CIT(A) against the orders of assessment framed u/s 147 / 143(3) / 144 etc. of the Income Tax Act, 1961 (hereinafter referred to as the 'Act').

2. At the outset itself, the Ld. DR has brought to our attention to the fact that the revenue has preferred these aforesaid appeals which have tax effect of less than Rs. 20 lacs, therefore, the revenue does not intend to press the appeals in the light of the CBDT Circular No.3/2018 dated 11.07.2018 wherein CBDT has directed as under:

"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/-
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:

3 4
"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 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. Cross Objection of the assessee arises out of ITA No.338/Kol/2014 is supportive and hence, the same is dismissed.

7. In the result, the appeals by the Revenue as well as the CO of the assessee is dismissed.

Order pronounced in the open court.

       Sd/-                                                                     Sd/-
       (M. Balaganesh)                                                          (A. T. Varkey)
       Accountant Member                                                        Judicial Member
                                       Dated : 31st July, 2018

Jd. Sr. P.S
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Copy of the order forwarded to:

1.     APPELLANT

2      Respondent

3.    The CIT(A),     Kolkata
4.    CIT     Kolkata
5.    DR, Kolkata Benches, Kolkata
          /True Copy,                    By order,
                                         Asstt. Registrar.




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