TaxTMI 
TaxTMI 
2018 (4) TMI 1565
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.... 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 assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In 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 or 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 of the year(s) in which the "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." 3. According to the learned DR, if the order of the CIT(A) is a composite order involving more than one assessment year and common issues in more than one assessment year are involved appeal can be filed in respect of all such assessment years ev....
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....No.21/20115. For the sake of ready reference, we give below the relevant paragraphs of Hon'ble Karnataka High Court on this issue. "....Per contra, Sri K.V. Aravind, learned counsel for the Appellants refers to para 5 of Circular No. 3/2011, which reads thus:- "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 assessee. 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 assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In 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 or 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 ....
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....t is less than Rs. 10 lakhs. Therefore, it is to be held that whether it is a solitary order or common order, the assessee should have the benefit of the tax effect less than Rs. 10 lakhs and in all such cases whether it is a part of the common order or a solitary order, the revenue will not be entitled to file an appeal". (emphasis supplied) 6. In view of the aforesaid decision of Hon'ble Karnataka High Court, we hold that the appeal of the Revenue for assessment year 2009-10 to 2012-13 being ITA No.2648 to 2651 and for assessment year 2014-15 being ITA 2653/B/2017 are dismissed for reason that the tax effect in these appeals are less than Rs. 10 lakhs and, therefore, such appeals are not maintainable in view of CBDT Circular No.21/2015. ITA No.2652/Bang/2017 (assessment Year 2013-14) 7. As far as this appeal of the Revenue is concerned, the grounds of appeal raised by the Revenue reads as follows:- "1. The order of the Learned Deputy Commissioner of Income Tax, Central Circle-1(4) in so far as it is against the appellant is opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. (i) The Learned Assessing Officer erred in disall....
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....s can be considered as having been set up and when a business is set up, all revenue expenditure have to be allowed as deduction in computing income from business. CIT v.. Dhoomketu Builders and Development Pvt. Ltd. (TS - 190- HC -2013(DEL) CIT v. Sarabhai Management Corporation (1991, 192 ITR 151 SC) CIT vs Saurashtra Cement & Chemical Industries Ltd. (1973) 91 ITR 170 9. The AO however, held that business of real estate can be considered as set up only when properties are acquired and development is carried out thereon. The AO held that merely acquiring land cannot be equivalent to setting up business of real estate development. The AO accordingly treated the business loss declared by the assessee of Rs. 46,74,561/- as incorrect and treated the income of the Assessee as nil. It is undisputed that the loss declared by the Assessee in the return of income is only because of the Revenue expenditure claimed in the P & L account. The AO treated the business loss of the assessee as Nil and refused to allow carry forward of business loss as claimed by the assessee. 10. On appeal by the assessee, the CIT(A) held that the business was set up and the assessee was entitled to claim....