Date Of Order: 27.03.2018 Ita v. Ohri Revansiddeshwar Co-Operative Credit Society

IN THR HIGH COURT OF KARNATAKAKALABURAGI BENCH DATED THIS THE 27 DAY OF MARCH 2O18 PRESENT THR HON’BLE Dr. JUSTICE VINBET KOTHARI ANT THR HON’BLE MR. JUSTICE R. DEVDAS INCOME TAX APPEAL No.100036/2016C/WINCOME TAX APPEAL No.100035/2016 ITA No. 100036/2016 Between: 1.The Principal Commissioner of Income TaxDr. B.R. Ambedkar Veedhi, BelagaviDr. B.R. Ambedkar Veedhi, Belagavi 2.The Income Tax OfficerWard-2, Biyapur (By Sri Ameet Kumar Deshpande, Advocate) ... Appellan And: Shri RevansiddeshwarCo-operative Credit SocietyMain Road, Horti, Indi TalukByapur District — 586 209PAN: AABAS 3319N (By Sri G.B. Yadav, Advocate) ... Responde Date of order: 27.03.2018ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax Vsohri Revansiddeshwar Co-operative Credit Society 2 This Income Tax Appeal is filed under Section 260A ofthe Income Tax Act, 1961, praying to formulate thesubstantial questions of law stated above and allow theappeal and set aside the orders passed by the Income TaxAppellate Tribunal, Bangalore Bench “A” Bangalore in ITANo.843(B)/2014 Dtd. 31.08.2015 and confirm the orderpassed by the Income Tax Officer, Ward-1, Gokak. ITA No.100035/2016: Between: 1.The Principal Commissioner of Income Tax Dr. B.R. Ambedkar Road, Belagavi 2.The Income Tax OfficerWard-2, VijayapurWard-2, Vijayapur (By Sri Ameet Kumar Deshpande, Advocate) ... Appellan And: M/s Basavan Bagewadi TalukaPrimary teachers Co-Operative SocietyBasavan Bagewadi — 586 203PAN: AAAABSS94K (By Sri G.B. Yadav, Advocate) ... Responde This Income Tax Appeal is filed under Section 260A ofthe Income Tax Act, praying to formulate the substantialquestions of law stated above and allow the appeal and setaside the orders passed by the Income Tax AppellateTribunal, BangaloreBench2? “Bangalore1nNITANo.1503/BANG/2014 Dtd. 30.07.2015 and confirm theorder passed by the Income Tax Officer, Ward-2, Vijayapur. Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax Vsohri Revansiddeshwar Co-operative Credit Society ! These appeals coming on for admission this day,VINEET KOTHARI J.,delivered the following: JU DGMENT Mr. Ameet Kumar Deshpande, Advocate for Appellant-Revenue Mr. G.B. Yadav, Advocate for Respondent-Assessee 1.Both these appeals are filed by the Revenueagainst the Assessee for Assessment Year2010-2011 and 2011-2012 respectively. TheIncome Tax Appellate Tribunal had decidedboth the Income Tax Appeals filed by theassessee in|ITA No.843(B)/2014and by theRevenue1nITANo.1503/Bang/2014allowing the appeal of the assessee vide orderdated31.08.2015and dismissing the appealof the Revenue vide order dated30.07.2015 ?)The two issues arising in these appeals wereabout the deletion of the additions made by Date of order: 27.03.2018ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax Vsohri Revansiddeshwar Co-operative Credit Society G the Income Tax Officer under Section 43B ofthe Act in the hands of the Assessee andconsequential imposition of penalty undersection 271 (1) (c) of the Act at the rate of100% ot the tax amount. 3.The learned counsel for the respondent-Assessee has raised a preliminary objectionabout the maintainability of these appealsandhasfurnishedbetoreUS|a&-2computation showing that the “tax eftect”involved in both these appeals filed by theRevenue is less than)Rs.20,00,000/-andtherefore, these appeals filed by the Revenueare not maintainable in view ot CircularNo.21/2015issued by Central Board DirectTaxes, Department of Revenue, Ministry ofFinance,GovernmentoT|India,4-&%410.12.2015, according to which the appeals Date of order: 27.03.2018ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax Vsohri Revansiddeshwar Co-operative Credit Society 3.The learned counsel for the respondent-Assessee has raised a preliminary objectionabout the maintainability of these appealsandhasfurnishedbetoreUS|a&-2computation showing that the “tax eftect”involved in both these appeals filed by theRevenue is less than)Rs.20,00,000/-andtherefore, these appeals filed by the Revenueare not maintainable in view ot CircularNo.21/2015issued by Central Board DirectTaxes, Department of Revenue, Ministry ofFinance,GovernmentoT|India,4-&%410.12.2015, according to which the appeals Date of order: 27.03.2018ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax Vsohri Revansiddeshwar Co-operative Credit Society Bunder Section 260A of the Act before HighCourts cannot be filed by the Department, ifthe tax effect is below|Rs.20,00,000/- 4LearnedcounselfortheRespondent-Assessee submitted that the tax effect in thepresent cases comes to Rs.14,69,430/- andRs.15,26,030/- respectively for both theassessment years and therefore the presentappeals filed by ReEVeENUaAlr( &maintainable. 5.Learned counsel for the appellant-RevenueMr.Ameet Kumar Deshpande is not able tocontrovert this statement oft the learnecounsel for the respondent-Assessee. 6.In view of the aforesaid CBDT Circular, thepresent appeals filed by the Revenue are heldto be not maintainable and the same are Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax Vsohri Revansiddeshwar Co-operative Credit Society " accordingly dismissed as not maintainable. No costs, Sd/- Sd/- JUDGE JUDGE LG