M/s. Karat 87 Hotels Pvt. Ltd., New Delhi V. ACIT, New Delhi

CO 103/DEL/2016

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3855 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 28 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 21-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHEFALI SWAROOP
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.2886/DEL./2015 (ASSESSMENT YEAR : 2009-10) ACIT, CENTRAL CIRCLE 7, VS. M/S. KARAT 87 HOTELS P VT. LTD., NEW DELHI. R/O 16/21, PADAM SINGH ROAD, KAROL BAGH, NEW DELHI. (PAN : AALCS7171E) CO NO.103/DEL/2016 (IN ITA NO.2886/DEL./2015) (ASSESSMENT YEAR : 2009-10) M/S. KARAT 87 HOTELS PVT. LTD., VS. ACIT, CENTRAL CIRCLE 7, R/O 16/21, PADAM SINGH ROAD, NEW DELHI. KAROL BAGH, NEW DELHI. (PAN : AALCS7171E) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : MS. SHEFALI SWAROOP, CIT DR DATE OF HEARING : 19.06.2018 DATE OF ORDER : 19.06.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ASSISTANT COMMISSIONER OF INCOME-TA X, CENTRAL CIRCLE 7, NEW DELHI (HEREINAFTER REFERRED TO AS TH E REVENUE) BY FILING ITA NO.2886/DEL./2015 2 THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 27.02.2015 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-24, NEW DELHI QUA THE ASSESSMENT YEAR 2009-10. 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFFECT AS PER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.10,00,000/- AND THIS FACTUAL POSITION HAS BEEN F AIRLY CONCEDED BY THE LD. D.R. 3. WE HAVE HEARD LD. DR ON THE ISSUE IN CONTROVERS Y AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIRCULAR (SUPRA ) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTM ENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME CO URT HAS BEEN REVISED AND THE RELEVANT PORTION OF THE AFORESAID C IRCULAR IS EXTRACTED AS UNDER: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S.NO. APPEALS IN INCOME- TAX MATTERS MONETARY LIMIT (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 LIMIT S PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECI DED ON MERITS OF THE CASE. ITA NO.2886/DEL./2015 3 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 BEF ORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' 4. THE CONTENTION OF LD. DR THAT SHE NEEDS SOME TI ME TO PROCURE THE REPORT FROM THE ASSESSING OFFICER TO WORK OUT THE T AX EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEAL IN QUES TION IS COVERED UNDER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 (SUPRA), THE REVENUE CANNOT IMPORT THE FACTS WITHIN THE KNOW LEDGE OF THE ASSESSING OFFICER TO FURTHER PROLONG THE MATTER. HO WEVER, IN CASE ANY FACT WHICH IS OTHERWISE NOT ON RECORD WARRANTS THE RESTORATION OF THE PRESENT APPEAL, THE REVENUE IS AT LIBERTY TO APPROA CH THE TRIBUNAL UNDER RELEVANT PROVISIONS OF LAW. 5. IN VIEW OF THE CBDT CIRCULAR NO.21 DATED 10.12. 2015 HAVING RETROSPECTIVE EFFECT AND WHAT HAS BEEN DISCUSSED AB OVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MA INTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.10,00,000/- HENCE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEE N BECOME INFRUCTUOUS. 6. IN VIEW OF THE FACT THAT PRESENT APPEAL BEARING ITA NO.2886/DEL/2015 IS DISMISSED, THE CROSS OBJECTION FILED BY THE ASSESSEE IS HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 19 TH DAY OF JUNE, 2018. SD/- SD/- (N.K. SAINI) (KULDIP SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 19 TH DAY OF JUNE, 2018 TS ITA NO.2886/DEL./2015 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-24, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.