M/s. Dharampal Satyapal Sons (P) Ltd., New Delhi V. DCIT, New Delhi

CO 187/DEL/2015

• Counselvise Citation: [2017] 112 COUNSELVISE.COM (IT) 4526 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 24-08-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 09-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect
• Section: 12A; 268A

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. I. C. SUDHIR , JM ITA NO. 5940/DEL/2014 : ASSTT. YEAR : 200 8 - 0 9 ITA NO. 5941/DEL/2014 : ASSTT. YEAR : 2009 - 10 D CIT, CENTRAL CIRCLE - 4, NEW DELHI VS M/S DHARAMPAL SATYAPAL SONS (P) LTD., 4828 - 29/24, 1 ST FLOOR, PRAHLAD LANE, ANSARI ROAD, DARYAGANJ, DELHI (APPELLANT) (RESPONDENT) PAN NO. AA BCD9090K CO NO. 187/DEL/2015 : ASSTT. YEAR : 2008 - 0 9 CO NO. 188/DEL/2015 : ASSTT. YEAR : 2009 - 10 M/S DHARAMPAL SATYAPAL SONS (P) LTD., 4828 - 29/24, 1 ST FLOOR, PRAHLAD LANE, ANSARI ROAD, DARYAGANJ, DELHI VS DCIT, CENTRAL CIRCLE - 4, NEW DELHI (APPELLANT) (RESPONDE NT) PAN NO. AA BCD9090K ASSESSEE BY : SH. R. S. SINGHVI , CA REVENUE BY : MS. RACHNA SINGH, CIT DR DATE OF HEARING : 24 .0 8 .201 7 DATE OF PRONOUNCE MENT : 24.08 .201 7 ORDER PER N. K. SAINI, AM : THE A PPEAL S FILED BY THE DEPARTMENT AND CROSS O BJECTION S BY THE ASSESSEE ARE DIRECTED AGAINST THE COMMON ORDER DATED 02.07.2014 OF LD. CIT(A) - XXXIII , NEW DELHI . ITA NO S. 5940 & 5941 /DE L/2014 CO NO S.187 & 188/DEL/2015 DHARAMPAL SATYAPAL SONS (P) LTD. 2 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE TAX EFFECT IN EACH OF THESE APPEAL S IS LESS THAN RS.10,00,000/ - , THEREFORE, THE DEPART MENT OUGHT NOT TO HAVE FILED THE S E APPEAL S IN VIEW OF THE CIRCULAR ISSUED BY THE CBDT AND THE PROVISIONS CONTAINED IN SECTION 268A OF THE INCO ME TAX ACT, 1961 (HEREINAFTER TO BE REFERRED AS THE ACT). 3. ON THE OTHER HAND, THE LD. D.R., ALTHOUGH SUPPORTED THE ORDER S OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THIS FACT THAT TAX EFFECT IN EACH OF THESE APPEAL S IS LESS THAN RS.10,00,000/ - . 4. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT SECTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RETROSPECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE ACT PROVIDES TH AT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO THE OTHER INCOME - TAX AUTHORITIES FIXING MONETARY LIMITS FOR NOT FILING THE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS, SAID INSTRUCTIONS/DIRECTIONS ARE BINDING ON THE INCOME TAX AUTHORITIES. ITA NO S. 5940 & 5941 /DE L/2014 CO NO S.187 & 188/DEL/2015 DHARAMPAL SATYAPAL SONS (P) LTD. 3 5. IT IS NOTICED THAT THE CBDT HAS ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015, VIDE WHICH IT HAS REVISED THE MONETARY LIMIT TO RS.10,00,000/ - FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE SAID CIRCULAR READS 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 MATTER MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2 BEFO RE 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 LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERI TS OF THE CASE. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SHALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX MATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT P ROVISIONS OF STATUTE & RULES. FURTHER, FILING OF APPEAL IN CASES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDER SECTION ITA NO S. 5940 & 5941 /DE L/2014 CO NO S.187 & 188/DEL/2015 DHARAMPAL SATYAPAL SONS (P) LTD. 4 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNE D BY THE LIMITS SPECIFIED IN PARA 3 ABOVE AND DECISION TO FILE APPEAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNA LS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 6. FROM CLAUSE 10 OF THE ABOVE SAID CIRCULAR IT IS CLEAR THAT THESE INSTRUCTIONS ARE APPLICABLE TO THE PENDING APPEALS ALSO AND AS PER CLAUSE 3, THERE IS CLEAR CUT INSTRUCTION TO THE DEPARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE THE ITAT WHEREIN TAX EFFECT IS LESS THAN RS.10,00,000/ - . THESE INSTRUCTIONS ARE OPERATIVE RETROSPECTIVELY TO THE PENDING APPEALS. 7. KEEPING IN VIEW THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, WE ARE OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL. 8 . AS REGARDS TO THE CROSS OBJECTION S FILED BY THE ASSESSEE ARE CONCERNED. THE LD. COUNSEL FOR THE ASSESSEE ITA NO S. 5940 & 5941 /DE L/2014 CO NO S.187 & 188/DEL/2015 DHARAMPAL SATYAPAL SONS (P) LTD. 5 STATED THAT HE HAS THE INSTRUCTION NOT TO PRESS THE CROSS OBJECTIO N S AND GAVE IN WRITING AS UNDER: CO NOT PRESSED. SD/ - 24.08.2017 9 . IN VIEW OF THE ABOVE, THE CROSS OBJECTION S FILED BY THE ASSESSEE ARE DISMISSED AS NOT PRESSED . 10 . IN THE RESULT, THE APPEAL S OF THE DEPARTMENT AND CROSS OBJECTION S OF THE ASSESSEE ARE DISMISSED. ( ORDER PRON OUNCED IN THE COURT ON 24 /0 8 / 2017 ) SD/ - SD/ - ( I. C. SUDHIR ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 24/08 /2017 *SUBODH* COPY FOR WARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR