Shri Shri Dharam Pal, New Delhi V. ITO, New Delhi

CO 336/DEL/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7445 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 15-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 22-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ASHIMA NEB
• Keywords: Retrospective amendment; Tax effect

Judgement Text

1 ITA NO. 5085/DEL/2016 C.O NO. 336/DEL/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 5085/DEL/20 16 (A.Y 2011-12) ITO WARD-49 (3), ROOM NO. 1408, E-2 BLOCK DR. SPM CIVIC CENTRE NEW DELHI AANPP4098C (APPELLANT) VS SHRI DHARAM PAL WZ-37, NANGLI JALIB, JANAK PURI NEW DELHI ( RESPONDENT) C.O NO. 336/DEL/2016 (A.Y 2011-12) SHRI DHARAM PAL WZ-37, NANGLI JALIB, JANAK PURI NEW DELHI AANPP4098C (APPELLANT) VS ITO WARD-49 (3), ROOM NO. 1408, E-2 BLOCK DR. SPM CIVIC CENTRE NEW DELHI ( RESPONDENT) APPELLANT BY MS. ASHIMA NEB, SR. DR RESPONDENT BY NONE ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AND CROSS OBJE CTION IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX [APPEALS]-17, NEW DELHI, DATED 05.07.2016 FOR ASSESSMENT YEAR 201 1-12. 2. IT WAS SEEN THAT TAX EFFECT OF THE APPEAL FILED BY THE REVENUE IS BELOW RS.20,00,000/-. THEREFORE, THE LD. DR WAS ASKED AS TO WHY THE APPEAL FILED BY DATE OF HEARING 15.01.2019 DATE OF PRONOUNCEMENT 15.01.2019 2 ITA NO. 5085/DEL/2016 C.O NO. 336/DEL/2016 THE REVENUE SHOULD NOT BE DISMISSED DUE TO LOW TAX EFFECT IN THE LIGHT OF THE RECENT CBDT CIRCULAR NO.03/2018 DATED 11 TH JULY,2018. 3. WE HAVE HEARD THE LD. DR. IT IS FOUND THAT PURSU ANT TO THE MANDATE OF SECTION 268A, THE CBDT HAS ISSUED CIRCULAR NO. 0 3 OF 2018, DATED 11TH JULY, 2018 WITH RETROSPECTIVE EFFECT, REVISING THE MONETARY LIMIT TO RS.20,00,000/- FOR NOT FILING APPEALS BEFORE THE TR IBUNAL. IT IS FURTHER FOUND THAT AS THE TAX EFFECT INVOLVED IN THE INSTANT APPE AL IS LESS THAN RS.20,00,000/-, THE EXTANT APPEAL IS NOT MAINTAINAB LE. THE LD. DR, ALTHOUGH SUPPORTED THE ORDERS OF THE ASSESSING OFFI CER, BUT COULD NOT CONTROVERT THE FACT THAT TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.20,00,000/-. 4. GOING BY THE PRESCRIPTION OF THE ABOVE STATED CI RCULAR, IT IS OBSERVED THAT THE INSTRUCTION IS APPLICABLE TO THE PENDING APPEALS ALSO WITH RETROSPECTIVE EFFECT AND THERE IS A CLEAR-CUT DIREC TION TO THE DEPARTMENT TO WITHDRAW OR NOT PRESS SUCH APPEALS FILED BEFORE THE ITAT, WHEREIN TAX EFFECT IS LESS THAN RS.20,00,000/-. WE ARE, THEREFORE, OF THE VIEW THAT THE REVENUE SHOULD HAVE EITHER NOT FILED THE INSTANT APPEAL BEF ORE THE TRIBUNAL OR WITHDRAWN THE SAME AS THE TAX EFFECT IN THIS APPEAL IS ADMITTEDLY LESS THAN THE PRESCRIBED LIMIT, I.E., RS. 20,00,000/- FOR NOT FIL ING THE APPEAL. ACCORDINGLY, WE DISMISS THE INSTANT APPEAL WITHOUT GOING INTO MERIT S OF THE CASES. 5. THE LD. DR HAS BROUGHT TO OUR NOTICE A LETTE R DATED 20.08.2018 OF THE DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL TH E PRINCIPAL CCITS IN WHICH PARA NO. 10 OF THE EARLIER CIRCULAR DATED 11.7.2018 , ENUMERATING CERTAIN INSTANCES IN WHICH THE APPEALS SHOULD BE CONTESTED NOTWITHSTANDING THE LOW TAX EFFECT, HAS BEEN REVISED. SHE, HOWEVER, COULD NOT PLACE ANY MATERIAL ON RECORD TO DEMONSTRATE THAT THE ABOVE APPEAL IS COVE RED BY THE AMENDED PARA OF THE CIRCULAR. UNDER THESE CIRCUMSTANCES, WE DISMISS ED THE APPEAL FILED BY THE 3 ITA NO. 5085/DEL/2016 C.O NO. 336/DEL/2016 REVENUE AND GIVE LIBERTY TO THE DEPARTMENT TO FILE MISCELLANEOUS APPLICATIONS, IF IT IS FOUND THAT EITHER THE TAX EFFECT IS MORE T HAN THE PRESCRIBED LIMIT OF RS.20,00,000/- OR THE APPEAL GETS COVERED IN THE RE VISED PARA 10 OF THE LETTER DATED 20.08.2018. ACCORDINGLY, THE APPEAL OF THE R EVENUE STAND DISMISSED. THE ASSESSEE FILED CROSS-OBJECTION WHICH DOES NOT S URVIVE, HENCE THE SAME IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE AND CROSS O BJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JANUARY, 2019 . SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 15/01/2019 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 5085/DEL/2016 C.O NO. 336/DEL/2016 DATE OF DICTATION 15.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 15 .01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 1 5 .01.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 5 .01.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 5 .01.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK