Tanvir Finance & Leasing Ltd., New Delhi V. DCIT, New Delhi

CO 401/DEL/2014

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 4077 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 6 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 03-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 26-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 3319 /DEL/ 2014 (ASSESSMENT YEAR: 2009 - 10 ) D CIT, CENTRAL CIRCLE - 21, NEW DELHI VS. TANVEER FINANCE & LEASING LTD (NOW KNOWN AS KARNOOR MARKETING LTD) 602, D/8, ROSE APARTMENTS, WARD NO. 3, FLAT NO. D - 3, MEHRAULI, NEW DELHI PAN: AACCT6924B (APPELLANT) (RESPONDENT) C O NO.401/DEL/2014 ( I N ITA NO. 3319 /DEL/ 2014 ) (ASSESSMENT YEAR: 2009 - 10 ) TANVEER FINANCE & LEASING LTD (NOW KNOWN AS KARNOOR MARKETING LTD) 602, D/8, ROSE APARTMENTS, WARD NO. 3, FLAT NO. D - 3, MEHRAULI, NEW DELHI PAN: AACCT6924B VS. DCIT, CENTRAL CIRCLE - 21, NEW DELHI (APPELLANT) (RESPONDENT) REVENUE BY : SHRI AMIT JAIN, SR. DR ASSESSEE BY: SHRI KAPIL GOEL, ADV DATE OF HEARING 26/07/2018 DATE OF PRONOUNCEMENT 01 / 08 /2018 O R D E R PER PRASHANT MAHARISHI, A. M. 1 . THESE ARE THE APPEALS FILED BY THE DEPARTMENT AND THE ASSESSEE DIRECTED AGAINST THE ORDER OF LD CIT(A) - II , NEW DELHI DATED 05.03.2014 FOR THE ASSESSMENT YEAR 2009 - 10 . DCIT VS. TANVEER FINANCE & LEASING LTD ITA NO.3319/DEL/2014 AND 401/DEL/2014 (ASSESSMENT YEAR: 2009 - 10) PAGE | 2 2 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.03/2018 DATED 1 1TH JULY 2018 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.20 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. LD AR ALSO REITERATED SAME FACTS. 3 . WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VID E CIRCULAR DATED 11 TH JULY 2018 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UND ER : - 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT(IN RS.) 1. BEFORE APPELLATE TRIBUNAL 20,00,000 2. BEFORE HIGH COURT 50,00,000 3. BEFORE SUPREME COURT 1,00,00,000 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 MERITS OF THE CASE. 4 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.20 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMEN T SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.20 LAKHS. 5. IN VIEW OF THE ABOVE, CIRCULAR NO.3/2018 DATED 10.07.2018 WILL APPLY TO ALL PE NDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.20 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. DCIT VS. TANVEER FINANCE & LEASING LTD ITA NO.3319/DEL/2014 AND 401/DEL/2014 (ASSESSMENT YEAR: 2009 - 10) PAGE | 3 6. IN THE RESU LT, APPEAL FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/08/2018 . - SD/ - - SD/ - (AMIT SHUKLA) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 01/08/2018 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI