Income Tax Appellate Tribunal - Pune
Shri Babulal Laxminarayan Malu,, vs Department Of Income Tax on 30 December, 2015
आयकर अपील�य अ�धकरण पुणे �यायपीठ "बी" पुणे म�
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "B", PUNE
सु�ी सुषमा चावला, �या�यक सद�य एवं �ी �द�प कुमार के�डया, लेखा सद�य के सम�
BEFORE MS. SUSHMA CHOWLA, JM AND SHRI PRADIP KUMAR KEDIA, AM
Sr. ITA No. Name of appellant Name of the Respondent Assessment
No. Year
The Income Tax Officer, Sou. Pallavi Satish Patil,
1478/PN/2014
Ward 2(3), Sangli Near Adarsh Prashala, A/p
1 2009-10
Nagaj, K. Mahankal, Dist.
Sangli
The Income Tax Officer, Shri Anil Dwarkadas
1530/PN/2014
Ward 1(2), Jalgaon Agrawal, C/o S.K. Oil
2 2008-09
Industries, Shivaji Nagar,
Dhulia Road, Jalgaon
The Asst. Commissioner of M/s. Rupal Marketing,
1542/PN/2014
Income Tax, Circle - 2, 5/6, Rushiraj Avenue,
3 2011-12
Nashik Canada Corner,
Nashik - 422011
The Income Tax Officer, Smt. Bharati D Mate,
1546/PN/2014
Ward 7(2), Pune Flat No.7, Suhrud Apartment,
4 15, Tapobhumi Co -op. 2008-09
Housing Society, Dattawadi,
Pune - 411030
The Dy. Commissioner of Shri Jayesh B Jain,
1638/PN/2014
Income Tax, Central Circle Prop. M/s. Jayesh
5 1(1), Pune Developers, 6, Kumar 2007-08
Rachana, Shanker Seth
Road, Pune - 411037
The Dy. Commissioner of Tulsi Extrusions Ltd.,
1693/PN/2014
6 Income Tax, Circle 1, N-99, MIDC, 2008-09
Jalgaon Jalgaon - 425003
The Addl. Commissioner of Sandhu Roadlines Pvt. Ltd.,
1753/PN/2014
Income Tax, Range - 10, 309, Patna Roadlines,
7 Pune Kotel Jee Building, Nashik 2007-08
Phata, Kasarwadi,
Pune - 411034
The Joint Commissioner of Shri Vilas Kedu Birari,
1860/PN/2014
Income Tax , Range - 1, Sanskruti, Murkute Colony,
8 Nashik New Pandit Colony, 2010-11
Gangapur Road,
Nashik - 422002
The Income Tax Officer, Mr. Parvez Nazir Hussain
1966/PN/2014
Ward 2(3), Aurangabad Jafri, Prop. of M/s. Jafri Steel
9 Traders, H.No.2-3-23, Ali 2006-07
Manzil, Shah Bazar,
Aurangabad
The Dy. Commissioner of Shri Venkateshwara
2042/PN/2014
Income Tax , Central Circle, Agricultural Farm, 'Chandan',
10 Kolhapur 8th Lane, A/p Jaysingpur, Tal - 2003-04
Shirol, Dist - Kolhapur -
416101
The Dy. Commissioner of Shri Babulal Laxminarayan
2049 &
11- Income Tax , Central Circle, Malu, 'Chandan', 8th Lane, 2001-02 &
2050/PN/2014
12 Kolhapur A/p Jaysingpur, Tal -Shirol, 2002-03
Dist - Kolhapur - 416101
2 ITA No s.1478/PN/2014
Pallavi Satish Patil & Ors
The Dy. Commissioner of Sou. Archana Rajendra
2051 & th
13- Income Tax, Central Circle, Malu, 'Chandan', 8 Lane, 2003-04 &
2052/PN/2014
14 Kolhapur A/p Jaysingpur, Tal -Shirol, 2005-06
Dist - Kolhapur - 416101
The Dy. Commissioner of Shri Venkateshwara Pan
2053/PN/2014
Income Tax, Central Circle, Masala Industries Pvt. Ltd.,
15 Kolhapur 'Chandan', 8th Lane, A/p 2006-07
Jaysingpur, Tal -Shirol, Dist -
Kolhapur - 416101
The Dy. Commissioner of Shri Bapusaheb B. Patil, R.S.
2101-
16- Income Tax, Central Circle, No.4112, Patson House, P.B. 2004-05 to
2107/PN/2014
22 Kolhapur Road, Shahapur, Belgaum, 2010-11
Karnataka - 590003
The Income Tax Officer , Shri Balaji Dattaram
2170/PN/2014
Ward 3(2), Nanded Manoorkar, Near Mahatma
23 2010-11
Phule Primary School, Naik
Nagar, Nanded
The Addl. Commissioner of M/s. Kumar Builders, Kumar
2240/PN/2014
24 Income Tax, Range-4, Capital, 2nd Floor, 2413, East 2010-11
Pune Street, Camp, Pune - 411001
The Asst. Commissioner of Shri Raviraj Vikas Takawane,
2244/PN/2014
Income Tax , Central Circle, Rajyog Bungalow, Plot
25 2011-12
2(3), Pune No.10, Sector No.28,
Pradhikaran, Pune - 411044
The Income Tax Officer, Shri Prakash Lotan Bagul,
02/PN/2015
Ward 1(1), Nashik N-42/VD-2/20/4, Savata
26 Nagar, 4 th Scheme, Near 2008-09
Mahadeo Mandir, CIDCO,
Nashik - 422009
The Jt. Commissioner of M/s. Dreams Properties,
09/PN/2015
27 Income Tax , Range - 5, Office No.1, Prestige Point, 2009-10
Pune 283, Shukrawar Peth, Pune
The Dy. Commissioner of Kumar Urban Development
38/PN/2015
Income Tax , Circle 11(1), Limited, 2413, Kumar
28 nd 2008-09
Pune Capital, 2 Floor, East
Street, Camp, Pune-411001
The Income Tax Officer, Sangola Urban Co-op. Bank
105/PN/2015
Ward 1(2), Solapur Ltd., 1609, Shri Siddhanath
29 2010-11
Hospital, Near S.T. Stand,
A/p - Sangola, Dist - Solapur
The Asst. Commissioner of M/s. Size Control Gauges &
118/PN/2015
Income Tax, Circle -6, Pune Tools Pvt. Ltd., 218,
30 Poornima Towers, 397, 2010-11
Shankarshet Road,
Pune - 411037
The Asst. Commissioner of The Nashik Merchant Co-op.
228/PN/2015
Income Tax , Circle - 1, Bank Ltd., A-16, Industrial
31 Nashik Estate, Babubhai Rathi 2007-08
Chowk, Satpur,
Nashik - 422007
The Dy. Commissioner of The Nashik Road Deolali
329/PN/2015
Income Tax, Circle - 1, Vyapari Sah. Bank Ltd.,
32 Nashik "Kalpawriksha", Ashanagar, 2009-10
Nashik Road,
Nashik - 422101
The Jt. Commissioner of Shri Vishnu V. Gujarathi,
695/PN/2015
Income Tax, Range - 1, Prop. of Unique Enterprises,
33 Nashik Shop No.3, Datta Bhawan, 2010-11
N.D. Patel Road,
Nashik - 422002
The Jt. Commissioner of The Seva Vikas Co-op. Bank
706/PN/2015 nd
Income Tax, Range - 10, Ltd., Laxmi Market, 2 Floor,
34 2011-12
Pune Opp. Railway Station, Pimpri,
Pune - 411017
3 ITA No s.1478/PN/2014
Pallavi Satish Patil & Ors
The Income Tax Officer, Smt. Qamarjahan Z. Patait,
863/PN/2015
Ward 1(1), Sangli Prop. P.K. Engineering
35 Works, Plot No.J-36, MIDC, 2010-11
Kupwad, Tal -Miraj,
Dist-Sangli
The Asst. Commissioner of Pavana Sah. Bank Ltd., Plot
931/PN/2015
Income Tax, Circle - 10, No.83, D II Block, MIDC,
36 2008-09
Pune Telco Road, Chinchwad,
Pune - 411019
The Asst. Commissioner of Minilec India Pvt. Ltd.,
937/PN/2015
Income Tax, Circle - 11(2), 1073/1-2-3, Mulshi Pirangut,
37 2010-11
Pune Mutha Road, Mulshi,
Pune - 412111
The Income Tax Officer, M/s. Sharada Construction &
1203/PN/2015
Ward 3(1), Pune Investment Company,
38 2009-10
"Sharada Centre", 11/1,
Erandwane, Pune - 411004
The Income Tax Officer, Smt. Khatunbi Badshah
1213 to
Ward 2, Ichalkaranji Bagwan, "Bagwan House",
1219/PN/2015 1999-2000,
39- H.No.499, Near
2001-02 to
45 Onkareshwar Temple,
2006-07
Ichalkaranji,
Dist-Kolhapur - 416115
The Dy. Commissioner of Irfan Badshah Bagwan, ,
1290/PN/2015
Income Tax, Central Circle, "Bagwan House", H.No.499,
46 Kolhapur Near Onkareshwar Temple, 2005-06
Ichalkaranji,
Dist-Kolhapur - 416115
The Income Tax Of ficer, Dhanlaxmi Gramin Bigersheti
1300/PN/2015
Ward 1(1), Nashik Sah. Patsanstha Maryadit,
47 Sahakari Bhavan, Nayagaon, 2011-12
Tal - Sinnar,
Dist - Nashik - 422103
The Dy. Commissioner of Maharashtra Mahila Sah.
1314/PN/2015
Income Tax , Circle 3(1), Gruh Udyog Sanshta
Dhule Maryadit, Plot No.33, Vallabh
48 2011-12
Nagar, Agrawal Nagar,
Malegaon Road,
Dhule - 424001
The Asst. Commissioner of The Janlaxmi Co-op. Bank
1317/PN/2015
49 Income Tax, Circle - 1, Ltd., Samrrudhi, Gadkari 2010-11
Nashik Chowk, Nashik - 422001
The Income Tax Officer, Shri Kapil Narendra Taneja,
1401/PN/2015
50 Ward 3(1), Dhule Prop. of Subham Computers, 2011-12
Parola Road, Dhule - 424001
The Jt. Commissioner of Shri Rahul Deoram Pardeshi,
1386/PN/2015
Income Tax, Range - 3, Prop. Bhairavnath Industries,
51 Nashik Near SBI, Malegaon Road, 2011-12
Nandgaon - 423106,
Dist. Nashik
The Dy. Commissioner of Shri Yash B. Tapadia,
1417/PN/2015
Income Tax, Central Circle Shivan, Plot No.14,
52 2006-07
2(2), Pune Gulmohar Park, Aundh,
Pune - 411007
The Dy. Commissioner of Netra P. Shah, Parag Milk
1621 &
53- Income Tax, Central Circle and Milk Products, Flat 2008-09 &
1622/PN/2015
54 1(1), Pune No.109, Adinath Society, 2009-10
Pune - 410037
The Tax Recovery Officer, M/s. Laxmi Rikshaw Body
1591/PN/2015
Range - 1, Aurangabad Pvt. Ltd., P.No.E -38-1,
55 2010-11
MIDC, Chikalthana,
Aurangabad - 431210
4 ITA No s.1478/PN/2014
Pallavi Satish Patil & Ors
The Addl. Commissioner of M/s. Taparia Tools Pvt. Ltd.,
1580/PN/2015
56 Income Tax, Range - 1, 52 & 53B, MIDC, Satpur, 2011-12
Nashik Nashik - 7
The Asst. Commissioner of Shri Goverdhansinghji
1585/PN/2015
Income Tax, Circle 3(1), Raghuwanshi Sah. Bank
57 Dhule Ltd., CTS-763B, Trimurti 2010-11
Subash Chowk, At Post
Nandurbar, Dist - Nandurbar
The Income Tax Officer, Kaish Shoukat Bagwan,
1083 to 1999-2000
58- Ward 1, Ichalkaranji 6/464, Near Jayshree Sizing,
1093/PN/2015 to
68 Sangli Road, Ichalkaranji,
Dist - Kolhapur 2009-10
The Income Tax Officer, Anjum Shoukat Bagwan,
1094 to 1999-2000
69- Ward 1, Ichalkaranji 6/464, Near Jayshree Sizing,
1104/PN/2015 to
79 Sangli Road, Ichalkaranji,
Dist - Kolhapur 2009-10
The Dy. Commissioner of
2218 to 2004-05
Income Tax, Central Circle, Shri Kiran Jayant Patil, R.S.
2224/PN/2014
80- Kolhapur No.4112, Patson House, P.B. To
86 Road, Shahapur, Belgaum, 2010-11
Karnataka - 590003
अपीलाथ� क� ओर से / Appellant by : Shri Hitendra Ninawe
��यथ� क� ओर से / Respondent by : Shri Sunil Ganoo - Sl. No.6
: Shri M.K.Kulkarni - Sl. Nos.9, 13-15, 39-46,
58-79
: Shri Pratik Jha - Sl. No.30
: Shri Pramod Shingte - Sl. No.31 & 32
: Smt. Deepa Khare - Sl. No.49
: None - Sl. Nos.1-5, 7-8, 10-12, 16-29, 33-
38, 47-48, 50-57 and 80-86
सुनवाई क� तार�ख / घोषणा क� तार�ख /
Date of Hearing : 22.12.2015 Date of Pronouncement: 30.12.2015
आदे श / ORDER
PER SUSHMA CHOWLA, JM:
The present bunch of appeals filed by the Revenue relating to different assessees are directed against different orders of CIT(A), relating to different assessment years mentioned therein.
5 ITA No s.1478/PN/2014 Pallavi Satish Patil & Ors
2. In all these appeals filed by the Revenue, the preliminary issue raised is the tax effect involved in individual appeals not exceeding Rs.10 lakhs, consequent to the Circular issued by CBDT dated 10.12.2015. In consultation with the Members of Bar and the learned Departmental Representatives for the Revenue, issue / service of individual notices of hearing have been dispensed with and the notices are only through Notice Board, since the tax effect in the above said appeals filed by the Revenue was below Rs.10 lakhs. All the above said appeals involving the preliminary issue were heard together and are being disposed of by this consolidated order for the sake of convenience.
3. The learned Authorized Representative for the assessee at the outset pointed out that the tax effect in all the appeals is below the limit of Rs.10 lakhs and consequently, the appeals filed by the Revenue are to be dismissed, in view of the CBDT's circular No.21/2015, dated 10.12.2015, where it has been announced that subject to certain instructions, which are not relevant to the present case, no Departmental appeal would be filed against the relief given by the CIT(A) before the Tribunal, unless the tax effect excluding interest exceeds Rs.10 lakhs. It is further provided vide the said circular itself that the said limit would be applicable not only to all future tax litigations but even to the pending appeals where the tax involved in the appeals does not exceed Rs.10 lakhs and the same shall not be pressed or withdrawn.
4. The learned Departmental Representative for the Revenue fairly agreed to the contention raised by the learned Authorized Representative for the assessee. In the appeals filed by the Revenue where none appeared, the learned Departmental Representative for the Revenue fairly conceded that the tax effect in those cases are also below Rs.10 lakhs.
6 ITA No s.1478/PN/2014 Pallavi Satish Patil & Ors
5. We have heard the rival contentions and perused the record. The issue arising in the present bunch of appeals is in relation to the additions, wherein the tax effect in each of the year is less than Rs.10 lakhs. In this background, we have to consider the circular No.21/2015 dated 10.12.2015 of CBDT. The CBDT vide the said circular has announced that subject to certain exceptions, no Departmental appeal would be filed against the relief given by the CIT(A) before the Tribunal, where the tax effect excluding interest does not exceed Rs.10 lakhs. The said instructions are made applicable not only to the future appeals to be filed by the Revenue but even to the pending appeals where the tax involved in each of the appeal does not exceed Rs.10 lakhs, the same are instructed not to be pressed or to be withdrawn by the Revenue. In view thereof, where an appeal is pending before the Tribunal, irrespective of the year to which it relates, the said instructions of the CBDT would be applicable and the appeals of the Revenue pending before the Tribunal where the tax effect is less than Rs.10 lakhs would become nullity. The relevant extract of the Circular is as under:-
"3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given under:-
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 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"). 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.
5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessment. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal, can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds 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 monetary limit specified in para 3. In 7 ITA No s.1478/PN/2014 Pallavi Satish Patil & Ors other words, henceforth, appeals can be filed only with reference to the tax effect in the relevant assessment year. However, in case of a composite order of any High Court of appellate authority, which involves 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), if it is decided to file appeal in respect of the year(s) in which 'tax effect' exceeds the monetary limit prescribed. In case where a composite order / judgment involves more than one assessee, each assessee shall be dealt with separately."
6. The CBDT has further clarified that in case the disputed issue arises in more than one assessment year, then the appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issue exceeds the monetary limit specified in para 3 i.e. Rs.10 lakhs before the Tribunal. It is further directed that henceforth, the appeals can be filed by the Revenue only 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 involves more than one assessment year and common issues in more than one assessment year, then appeal shall be filed in respect of such assessment year, even if the tax effect is less than the prescribed monetary limits in any of the year(s), if it is decided to file appeal in respect of the year(s) in which 'tax effect' exceeds the monetary limit prescribed. Where a composite order / judgment involves more than one assessee, then each assessee shall be dealt with separately. It is also provided further vide paras 6 and 7 that where the appeal before the Tribunal was not filed only on account of tax effect being less than specified monetary limit, then the Income-tax Department shall not be precluded from filing an appeal against the disputed issues in the case of the same assessee for any other assessment year, or in case of any other assessee for the same or any other assessment year, if the tax effect exceeds the specified monetary limits. The CBDT has further vide para 8 specified the issue which should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified. Further, the specified monetary limits as per para 9 would not apply to writ matters and direct tax matters other than Income tax and also is not applicable to the appeals were tax effect is not quantifiable or not 8 ITA No s.1478/PN/2014 Pallavi Satish Patil & Ors involved, such as the case of registration of trusts or institutions under section 12A of the Act. In such cases, the decision to file an appeal is to be taken on the merits of a particulars case. The paras 6 to 9 of the circular read as under:-
"6. In a case where appeal before a Tribunal or a Court is not filed only on account of the tax effect being less than the monetary limit specified above, the Commissioner of Income-tax shall specifically record that "even though the decision is not acceptable, appeal is not being filed only on the consideration that the tax effect is less than the monetary limit specified in this instruction". In such cases, there will be no presumption that the Income-tax Department has acquiesced in the decision on the disputed issues. The Income-tax Department shall not be precluded from filing an appeal against the disputed issues in the case of the same assessee for any other assessment year, or in the case of any other assessee for the same or any other assessment year, if the tax effect exceeds the specified monetary limits.
7. In the past, a number of instances have come to the notice of the Board, whereby an assessee has claimed relief from the Tribunal or the Court only on the ground that the Department has implicitly accepted the decision of the Tribunal or Court in the case of the assessee for any other assessment year or in the case of any other assessee for the same or any other assessment year, by not filing an appeal on the same disputed issues. The Departmental representatives/counsels must make every effort to bring to the notice of the Tribunal or the Court that the appeal in such cases was not filed or not admitted only for the reason of the tax effect being less than the specified monetary limit and, therefore, no inference should be drawn that the decisions rendered therein were acceptable to the Department. Accordingly, they should impress upon t he Tribunal or the Court that such cases do not have any precedent value. As the evidence of not filing appeal due to this instruction may have to be produced in courts, the judicial folders in the office of CsIT must be maintained in a systemic manner for easy retrieval.
8. Adverse judgments relating to the following issues 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 Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or
(c) Where Revenue Audit object in the case has been accepted by the Department, or
(d) Where the addition relates to undisclosed foreign assets / bank accounts.
9. The monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute & rules. Further, filing of appeal in cases of Income Tax, where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12A of the IT Act, 1961, shall not be governed by the limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of a particular case."
7. The retrospective operation of the instructions to pending appeals is provided in para 10 of the circular, which reads as under:-
"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 pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed."
9 ITA No s.1478/PN/2014 Pallavi Satish Patil & Ors
8. In view of the above said instructions of CBDT in all the appeals where the tax effect is less than Rs.10 lakhs, the appeals filed by the Revenue, which are pending before the Tribunal are not to be pressed or withdrawn by the Revenue. Since the tax effect in the present appeals filed by the Revenue is admittedly less than Rs.10 lakhs in each case, therefore, in view of the instructions of CBDT and the entirety of facts, we dismiss the appeals filed by the Revenue as not maintainable.
9. In the result, all the appeals of the Revenue are dismissed.
Order pronounced on this 30th day December, 2015.
Sd/- Sd/-
(PRADIP KUMAR KEDIA) (SUSHMA CHOWLA)
लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य / JUDICIAL MEMBER
पुणे / Pune; �दनांक Dated : 30th December, 2015.
GCVSR
आदे श क� ��त�ल�प अ�े�षत/Copy of the Order is forwarded to :
1. अपीलाथ� / The Appellant;
2. ��यथ� / The Respondent;
3. आयकर आयु�त(अपील) / The concerned CIT(A);
4. आयकर आयु�त / The concerned CIT,
5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, पुणे "बी" / DR 'B', ITAT, Pune;
6. गाड� फाईल / Guard file.
आदे शानुसार/ BY ORDER, स�या�पत ��त //True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune