M/s. Surpal Chains Pvt. Ltd., New Delhi V. JCIT (OSD), New Delhi

CO 392/DEL/2011

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2142 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s) 10 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 10-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 09-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANIMA BERNWAL
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , AND SHRI O.P. KANT , ACCOUNTANT MEMBER, ITA NO. 1422/DEL/2010 [A.Y 2006 - 07] & ITA NO. 5037/DEL/2011 [A.Y 2008 - 09 THE A.C. I.T . VS. M/S S URPAL CHAINS (P) LTD CIRCLE 9(1) 507, NARAIN MANZIL, N EW DELHI 23, BARAKHAMBA ROAD , NEW DELHI PAN : AAGCS 4022 H CO NO. 392 /DEL/201 1 [A/O ITA NO. 5037 /DEL /20 1 1 ] ASSESSMENT YEAR: 200 8 - 0 9 M/S SURPAL CHAINS (P) LTD VS. THE A.C. I.T. 507, NARAIN MANZIL CIRCLE 9(1) 23, BARAKHAMBA ROAD, NEW DELHI NEW DELHI P AN : AAGCS 4022 H [APPELLANT] [RESPONDENT] DATE OF HEARING : 1 0 . 0 2 . 201 6 DATE OF PRONOUNCEMENT : 19 . 0 2 .201 6 ASSESSEE BY : SHRI ASHOK KHANDELWAL , CA DEPARTMENT BY : SHRI ANIMA BERNWAL, SR. DR ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER TH E ABOVE CAPTIONED TWO APPEAL S BY THE REVENUE AND CROSS OBJECTION BY THE ASSESSEE ARE DIRECTED AGAINST THE 2 2 ORDER S OF THE CIT(A) - X II , NEW DELHI, DATED 1 0 / 11 /20 09 AND 8.8.2011 FOR A.Y S 200 6 - 0 7 AND 2008 - 09 RESPECTIVELY . 2. TH ESE APPEAL S AND CROSS OBJECTION HA VE BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 D ATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10 LA KH S FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME - TAX ACT. 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATED 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE 1TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOULD A PPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4. THE L D . SR. DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT THE APPEAL S CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FUR THER REFERRED TO PARA 7 OF THE C IRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD 3 3 NOT BE CONSIDERED AS A PRECEDENCE IN THE M ATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON T HE OTHER HAND, STATED THAT THE C IRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPEAL OF THE REVENUE. HE REQUESTED FOR WITHDRAWAL OF THE CROSS OBJECTION OF THE ASSESSEE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN TH ESE A PPEAL S BY THE REVENUE IS BELOW RS. 10.00 LA KHS AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEAL PARTICULARLY BECAUSE THE PENDING APPEAL I S COVERED BY C IRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS.10 LA KHS OR IN ANY OTHER MANNER, THE C IRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE C IRCULAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF TH IS ORDER WHICH THE TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE SR. DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE 4 4 ISSUE INVOLVED IN TH I S APPEAL AND WILL NOT BE A N ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE, INVOLVED IN THESE APPEALS, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THO SE YEARS IS MORE THAN RS.10 LAKHS . 7. KEEPING IN VIEW THE ABOVE CIRCULAR AND THE PROVISIONS OF SECTION 268A OF THE INCOME - TAX ACT, 196 1 AND WITHOUT GOING INTO MERITS OF THE CASE, WE DISMISS THE INSTANT APPEAL S FILED BY THE REVENUE AS TAX EFFECT IN THE APPEAL S IS LESS THAN RS.10 LA KHS . 8 . IN THE RESULT, THE APPEAL S OF THE REVENUE AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE STAND DISMISSED AS WITHDRAWN . THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 1 9 . 0 2 .201 6 . S D / - S D / - ( O.P KANT ) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 1 9 T H FEBRUARY 2016 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR 5 5 ASST. REGISTRAR, ITAT, NEW DELHI