M/s. Standard Portfolio Pvt. Ltd., New Delhi V. ACIT, New Delhi

CO 106/DEL/2015

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 5822 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 17 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 14-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 11-05-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 27-04-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S S RANA
• Keywords: Retrospective amendment; Tax effect
• Section: 153C; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO.-3990/DEL/2014 (ASSESSMENT YEAR- 2008-09) ACIT CENTRAL CIRCLE 17, NEW DELHI. (APPELLANT) VS STANDARD PORTFOLIO PVT. LTD., 4827/24, ANSARI ROAD, DARYAGANJ, NEW DELHI. PAN NO. AAGCS5157D (RESPONDENT) & CROSS OBJECTION NO. 106/DEL/2015 (IN ITA NO.-3990/DEL/2014) (ASSESSMENT YEAR- 2008-09) STANDARD PORTFOLIO PVT. LTD., 4827/24, ANSARI ROAD, DARYAGANJ, NEW DELHI. PAN NO. AAGCS5157D (APPELLANT) VS ACIT CENTRAL CIRCLE 17, NEW DELHI. (RESPONDENT) APPELLANT BY SHRI S.S. RANA, CIT (DR) RESPONDENT BY SHRI ANIL JAIN, CA ITA NO. 3990/D/2014 & CO NO. 106/DEL/2015 2 ORDER PER SHRI. H.S. SIDHU, J.M. THIS APPEAL IS FILED BY THE REVENUE AND CROSS OBJEC TION FILED BY THE ASSESSEE AGAINST THE IMPUGNED ORDER PASSED B Y THE LD. CIT(A)-III, NEW DELHI RELATING TO ASSESSMENT YEAR 2 008-09 ON THE FOLLOWING GROUNDS OF APPEAL: GROUNDS OF ITA NO. 3990/DEL/2014 : 1. THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRE D IN LAW AND ON FACTS OF THE CASE IN DELETING THE ADDITION O F RS. 60,00,000/- MADE U/S 68 OF THE ACT. 2. THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE ADDITION O F RS. 9,00,000/- W.R.T. RECEIPTS FROM M/S BLUEJAY AIRLINES PVT. LTD. MADE U/S 68 OF THE ACT. 3. (A) THE ORDER OF THE CIT(A) IS ERRONEOUS AND NOT T ENABLE IN LAW AND ON FACTS. (B) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AM END ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURS E OF THE HEARING OF THE APPEAL. GROUNDS OF CO NO. 106/DEL/2015 : 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D PROVISION OF LAW THE LD. CIT(APPEAL) HAS FAILED TO APPRECIATE THAT THE INITIATION OF THE PROCEEDING U/S 153C OF T HE INCOME TAX ACT IS ILLEGAL AND BAD IN LAW. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE PROVISION OF THE LAW THE LD. CIT (APPEAL) HAS FAILE D TO APPRECIATE THAT THE ASSESSMENT FRAMED IS AGAINST TH E STATUTORY PROVISIONS OF THE ACT AND WITHOUT COMPLYIN G THE PROCEDURE PRESCRIBED U/S 153C OF THE INCOME TAX ACT. ITA NO. 3990/D/2014 & CO NO. 106/DEL/2015 3 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE REVENU E APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFFECT AS PER CBDT CIRCU LAR NO.17/2019 DATED 8 TH AUGUST, 2019 VIDE WHICH THE REVENUE HAS BEEN DIRECT ED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.50,00,000/- AND THIS FACTUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. CIT (DR). THE LD. A.R. CONTENDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT C IRCULAR (SUPRA). 3. WE HAVE HEARD THE PARTIES ON THE ISSUE IN CONTR OVERSY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIRCULAR (SUPRA ) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISED AND THE RELEVANT PORTION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: SUBJECT : FURTHER ENHANCEMENT OF MONETARY LIMITS FO R FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPE LLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 -MEASURES FOR REDUC ING LITIGATION. REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF 2018 D ATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VI DE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. HIGH COURTS A ND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPECIFI ED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THR OUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: ITA NO. 3990/D/2014 & CO NO. 106/DEL/2015 4 S. NO. APPEALS/SLPS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 50,00,000/- 2 BE FORE HIGH COURT 1,00,00,000/- 3 BEFORE SUPREME COURT 2,00,00,000/- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: '5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT 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 T HAN 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 S PECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF A N ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EV EN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELL ATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDE R/ JUDGMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSE SSEE SHALL BE DEALT WITH SEPARATELY.' 4. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENCH OF THE TRI BUNAL IN CASE OF DINESH MADHAVLAL PATEL [TS-469-ITAT-2019(AHD)] 2019-TIOL-1 556-ITAT-AHM DATED 14 TH AUGUST, 2019 HAS ALREADY DECIDED THE ISSUE AS TO THE APPLICABILI TY OF THE CAPTIONED CIRCULAR TO THE PENDING APPEALS IN AF FIRMATIVE AND WHAT HAS BEEN DISCUSSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS TH AN RS.50,00,000/- HENCE, THE ITA NO. 3990/D/2014 & CO NO. 106/DEL/2015 5 AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DIS MISSED HAVING BEEN BECOME INFRUCTUOUS. HOWEVER, IN CASE, THE PRESENT APPEAL IS FOUND TO BE MAINTAINABLE AT ANY STAGE FOR ANY TECHNICAL REASONS, THE DEPARTMENT SHALL BE AT LIBERTY TO SEEK RECALL OF THIS ORDER UNDER RELEVANT PROVISIONS OF L AW. ASSESSEES CROSS OBJECTION NO. 106/DEL/2015 5. AS REGARDS ASSESSEES CROSS OBJECTION IS CONCERN ED, SINCE WE HAVE ALREADY DISMISSED THE REVENUES APPEAL ON AC COUNT OF LOW TAX EFFECT, AS AFORESAID, HENCE, THE CROSS OBJECTIO N FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND DISMISSED AS SU CH. 6. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMEN T AS WELL AS CROSS OBJECTION OF THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.10.2019 SD/- SD/- (O.P. KANT) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14/10/2019 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI ITA NO. 3990/D/2014 & CO NO. 106/DEL/2015 6 DATE 1. DRAFT DICTATED ON 14/10/19 2. DRAFT PLACED BEFORE AUTHOR 14/10/19 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 14/10/19 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 14/10/19 5. APPROVED DRAFT COMES TO THE SR.PS/PS 14/10/19 6. ORDER PRONOUNCED AND UPLOADED 14/10/19 7. FILE SENT TO THE BENCH CLERK 14/10/19 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.