M/s. Ganpati Fincap Pvt Ltd., New Delhi V. DCIT, New Delhi

CO 462/DEL/2015

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1662 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 13 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 11-12-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2005-2006
• Appeal Filed On: 29-12-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Keywords: Tax effect
• Section: 268A

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE N.K.BILLAIYA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER SHRI ITA NO. 6230/DEL/2015 ASSTT. YEAR: 2005-06 CROSS OBJECTION NO. 462/DEL/2015 (IN ITA NO. 6230/DEL/2015) A.Y. 2005-06 GANPATI FINCAP PVT. LTD. C/O. M/S. RRA TAXINDIA, D-28, SOUTH EXTENSION, PART-1 NEW DELHI PAN : AAACG3466H APPELLANT VS. DCIT CENTRAL CIRCLE-18, ROOM NO. 102, ARA CENTRE, E-2, JHANDEWALAN EXTN. NEW DELHI RESPONDENT DCIT CENTRAL CIRCLE-18, ROOM NO. 102, ARA CENTRE, E-2, JHANDEWALAN EXTN. NEW DELHI APPELLANT VS. GANPATI FINCAP PVT. LTD. 2-D, MIG, DDA FLATS, GULABI BAGH NEW DELHI PAN : AAACG3466H RESPONDENT DCIT CENTRAL CIRCLE-18, ROOM NO. 102, ARA CENTRE, E-2, JHANDEWALAN EXTN. NEW DELHI APPELLANT VS. GANPATI FINCAP PVT. LTD. 2-D, MIG, DDA FLATS, GULABI BAGH NEW DELHI PAN : AAACG3466H RESPONDENT DEPARTMENT BY: SHRI S.S.RANA, CIT (DR) ASSESSEE BY : DR. RAKESH GUPTA, ADV. SH. SOMIL AGARWAL, ADV. DATE OF HEARING 09 / 12 /201 9 DATE OF PRONOUNCEMENT 11 / 12/2019 2 O R D E R PER SUDHANSHU SRIVASTAVA, JM: THE APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD . COMMISSIONER OF INCOME TAX (APPEALS)-27, NEW DELHI DATED 28.09.2 015 PERTAINING TO THE ASSESSMENT YEAR 2005-06. 2. AT THE OUTSET OF THE HEARING ITSELF, THE LD. AR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO. 17/2019 DATED 08TH AUGUST 2019 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LES S THAN RS. 50 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. 3. NOW THERE IS A LATEST CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019, WHEREIN THE CBDT HAS FURTHER ENHANCED THE MONETARY LIMIT FOR FILING OF APPEAL BY THE DEPARTM ENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS. 20 LACS TO R S. 50 LACS. THE SAID CIRCULAR ALSO MAKE REFERENCE TO THE EARLIE R CIRCULAR NO. 3/2018 DATED 11.7.2018 AND SPECIALLY STATES THAT A S A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE AP PEALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE EARLIER CIRC ULAR BUT ONLY AMENDS THE MONETARY LIMITS AS WELL AS GIVES CLARIFI CATION WITH REGARD TO PARAGRAPH 5 OF THE EARLIER CIRCULAR. THIS INTER ALIA MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN THE EARL IER CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING 3 THAT IS, IT WILL APPLY TO ALL THE PENDING APPEALS. FOR THE SAKE OF READY REFERENCE, THE LATEST CIRCULAR IS REPRODUCED HEREUNDER : F. NO.279/MISC. 142/2007-ITJ(PT.) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT O F REVENUE CENTRAL BOARD DIRECT TAXES JUDICIAL SECTION NEW DELHI. 8TH AUGUST 2019 SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS F OR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME T AX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFO RE INCOME TAX APPELLATE TRIBUNAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED TH AT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH 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: S.NO APPEALS/SLPS IN INCOME TAX MATTERS MONETARY LIMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50,00,000/- 2. BEFORE HIGH COURT 1,00.00.000/- 3. BEFORE SUPREME COURT 2,00,00,000/- 4 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGH ER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS- A-VIS WHERE 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 THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH T HE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEED S THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMI T SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPEC T OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. I N CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEAL T WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CONCERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TAX ACT, 1961. 4. FURTHER, CBDT VIDE CIRCULAR DATED 20 TH AUGUST, 2019 F.NO.279/19-93/2018-ITJ HAS CLARIFIED THAT IT WILL APPLY TO ALL PENDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIR CULAR, THE APPEAL OF THE REVENUE IS DISMISSED AS NON-MAINTAINA BLE BECAUSE 5 TAX EFFECT IS BELOW RS. 50 LAKHS AND THE ASSESSEES CROSS OBJECTION IS DISMISSED AS NOT PRESSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER, 2019. SD/- SD/- (N.K.BILLAIYA) (SUDHA NSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 11/12/2019 BR COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI DATE OF DICTATION 11/12/2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 11/12/2019 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 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 6