Income Tax Appellate Tribunal - Raipur
M/S Nrvs Steels Ltd., Basna, Mahasamund vs Deputy Commissioner Of Income Tax, ... on 1 June, 2023
आयकर अपील य अ धकरण यायपीठ रायपुर म।
IN THE INCOME TAX APPELLATE TRIBUNAL,
RAIPUR BENCH, RAIPUR
BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER
AND
SHRI ARUN KHODPIA, ACCOUNTANT MEMBER
आयकर अपील सं./IT(SS)A No.13/RPR/2022
CO No.19/RPR/2022
नधारण वष / Assessment Year : 2013-14
The Deputy Commissioner of Income Tax,
Circle-1(1), Bilaspur (C.G.)
.......अपीलाथ / Appellant
बनाम / V/s.
M/s. NRVS Steels Limited
House No.286, C/o. Om Prakash Agrawal,
Padampur Road, Basna (C.G.)-493 554
PAN : AAHCS4369L
...... यथ / Respondent
Assessee by : Shri Sunil Kumar Agrawal, CA
Revenue by : Smt. Ila M. Parmar, CIT-DR
सुनवाई क तार ख / Date of Hearing : 01.06.2023
घोषणा क तार ख / Date of Pronouncement : 01.06.2023
2
DCIT, CC 1(1), Bilaspur Vs. M/s. NRVS Steels Limited
IT(SS)A No. 13/RPR/2022
CO. 19/RPR/2022
आदे श / ORDER
PER BENCH :
The present appeal filed by the revenue is directed against the order passed by the CIT(Appeals)-3, Bhopal dated 18.03.2022, which in turn arises from the order passed by the A.O. u/s.143(3) r.w.s. 153A of the Income-tax Act, 1961 (for short 'Act'), dated 30.12.2019 for A.Y. 2013-14. Also, the assessee is before us as a cross-objector in CO No.19/RPR/2022.
2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.
3. CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. 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 issues against which appeal is intended to be filed. Further, 'tax 3 DCIT, CC 1(1), Bilaspur Vs. M/s. NRVS Steels Limited IT(SS)A No. 13/RPR/2022 CO. 19/RPR/2022 effect' shall be taxes 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 order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.
At para 13 of the above Circular, it has been mentioned that:
"13. This Circular will apply to SLPs/appeals/cross objection/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. As a step towards further management of litigation, CBDT vide Circular No.17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.
5. The Ld. Departmental Representative (for short 'DR') had filed a letter dated 31.05.2023 wherein, it is admitted that the tax effect involved in the present appeal amounts to Rs.25,64,700/-. On a perusal of the application, it transpires that the ACIT (Central), Bilaspur had clarified that inadvertently 4 DCIT, CC 1(1), Bilaspur Vs. M/s. NRVS Steels Limited IT(SS)A No. 13/RPR/2022 CO. 19/RPR/2022 in the memorandum of appeal filed by the department the amount of tax effect involved was mentioned as Rs.55,16,807/-. Be that as it may, in the instant appeal filed by the department, the tax effect involved is below the monetary limit of Rs.50,00,000/-.
6. Before us the Ld. DR submits that liberty may kindly be given to raise, after necessary further verification, and to seek recall the dismissal of appeal and restoration of the appeal in case it can be shown that the appeal is covered by the exceptions.
7. We agree with the above contentions of the Ld. DR and make it clear that the appellant shall be at a liberty to point out the exceptions and we will take appropriate remedial measures in this regard.
8. With the above observations, the appeal filed by the department involving tax effect of less than Rs.50,00,000/- is dismissed.
9. Also, the cross objection filed by the assessee is destined to the same fate and accordingly, we dismiss the same.
5
DCIT, CC 1(1), Bilaspur Vs. M/s. NRVS Steels Limited IT(SS)A No. 13/RPR/2022 CO. 19/RPR/2022
10. Resultantly, both, the appeal filed by the revenue and cross objection filed by the assessee are dismissed in terms of our aforesaid observations.
Order pronounced in open court on 01st day of June, 2023.
Sd/- Sd/-
ARUN KHODPIA RAVISH SOOD
(ACCOUNTANT MEMBER) (JUDICIAL MEMBER)
रायपुर/ RAIPUR ; दनांक / Dated : 01st June, 2023 SB आदे श क त ल प अ े षत / Copy of the Order forwarded to :
1. अपीलाथ / The Appellant.
2. यथ / The Respondent.
3. The CIT(Appeals)-3, Bhopal
4. The Pr. CIT (Central), Bhopal.
5. वभागीय त न ध, आयकर अपील य अ धकरण, रायपुर बच, रायपुर / DR, ITAT, Raipur Bench, Raipur.
5. गाड फ़ाइल / Guard File.
आदे शानस ु ार / BY ORDER, // True Copy // नजी स चव / Private Secretary आयकर अपील य अ धकरण, रायपुर / ITAT, Raipur.