Tikaula Sugar Mills Ltd., Muzaffarnagar V. ACIT, Muzaffarnagar

CO 47/DEL/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3859 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 14-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2011-2012
• Appeal Filed On: 22-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI G.D. AGRAWAL, PRESIDENT & SHRI AMIT SHUKLA, JUDICIAL MEMBER I.T.AS. NO.668 & 669/DEL/2015 ASSESSMENT YEARS: 2010-11 & 11-12 ACIT, CIRCLE-2, MUZAFFARNAGAR. VS. TIKAULA SUGAR MILLS LTD., 25-B, GHER KHATTI, GAUSHALA ROAD, NEW MANDI, MUZAFFARNAGAR. TAN/PAN: AACCT5815B (APPELLANT) (RESPONDENT) COS NO.253/DEL/2015 & 47/DEL/2018 ASSESSMENT YEARS : 2010-11 & 11-12 TIKAULA SUGAR MILLS LTD., 25-B, GHER KHATTI, GAUSHALA ROAD, NEW MANDI, MUZAFFARNAGAR. VS. ACIT, CIRCLE-2, MUZAFFARNAGAR. TAN/PAN: AACCT5815B (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI AMIT JAIN, SR.D.R. RESPONDENT BY: SHRI AKHILESH KUMAR, ADV. DATE OF HEARING: 14 06 2018 DATE OF PRONOUNCEMENT: 14 06 201 8 O R D E R PER AMIT SHUKLA, J.M.: BOTH THE APPEALS AS WELL AS THE CROSS OBJECTIONS HAVE BEEN FILED AGAINST THE ORDER OF THE CIT(A), MU ZAFFARNAGAR DATED 17.11.2014. ITAS NO.668 & 669/DEL/2015 & COS NO.253/DEL/15 & 47 /DEL/18 2 2. SO FAR THE APPEALS FILED BY THE REVENUE ARE CONC ERNED; IT IS NOTED THAT IN THESE CASES THE TAX EFFECT ON THE INCOME UNDER DISPUTE ARE LESS THAN RS.10 LACS. THE CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 FILE NO.279 OF MISC. 142/2007 ITJ (PT) HAS ISSUED THE DIRECTION IN SUPPRESSION OF THE INSTRUCTION NO.5/20 14 DATED 10.07.2014 IN PURSUANCE WITH THE POWER INTERESTED U /S.268A OF THE INCOME TAX ACT THAT NO APPEAL SHOULD BE FILE D BEFORE THIS TRIBUNAL IN CASE TAX EFFECT DOES NOT EXCEED RS .10 LAC. THE TAX EFFECT IN THIS REGARD MEANS THE DIFFERENCE BE TWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WHAT HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY TH E AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. THIS CIRCULAR FURTHER STATES THAT TAX WILL NOT INCLUDE ANY INTEREST THEREON THE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. WE FURTHER NOTED THAT UNDER P ARAGRAPH 10 WHICH IS REPRODUCED AS UNDER, IT HAS BEEN MENTIONED IN THE CIRCULAR THAT THIS INSTRUCTION WILL APPLY EVEN TO T HE PENDING APPEALS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. 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. ITAS NO.668 & 669/DEL/2015 & COS NO.253/DEL/15 & 47 /DEL/18 3 3. IN THE IMPUGNED CASES, WE NOTED THAT THE TAX EFF ECT ON THE ISSUES UNDER DISPUTE DOES NOT EXCEED RS.10 LAC. IN VIEW OF THIS FACT AS PER THE INSTRUCTION, THE REVENUE IS NO T SUPPOSED TO PRESS THE APPEALS. WE, THEREFORE, DISMISS THE AP PEALS FILED BY THE REVENUE IN LIMINE WITHOUT GOING INTO THE MER ITS OF THE CASE AS IN MY OPINION THE CIRCULAR ISSUED BY CBDT A RE BINDING ON THE DEPARTMENTAL OFFICERS IN VIEW OF THE PROVISI ON OF SECTION 268A(1) OF THE ACT. THE SAID VIEW HAS BEEN TAKEN BY HONBLE SUPREME COURT IN THE CASE OF NAVNEET LAL ZAVERI VS. AAC 56 ITR 198 (SC) . WE ACCORDINGLY DISMISS THE APPEALS FILED BY THE REVENUE. 4. SINCE, WE HAVE ALREADY DISMISSED THE APPEALS OF THE REVENUE IN VIEW OF CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015. THE CROSS OBJECTIONS FILED BY THE ASSESSEE WE RE SUPPORTIVE TO THE ORDER OF THE CIT(A), THEREFORE, T HEY BECOME INFRUCTUOUS. WE DISMISS THE SAME AS INFRUCTUOUS. 5. IN THE RESULT, BOTH THE APPEALS AS WELL AS CROSS OBJECTIONS STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE, 2018. SD/- SD/- [ G.D. AGRAWAL ] [AMIT SHUKLA] PRESIDENT JUDICIAL MEMBER DATED: 14 TH JUNE, 2018 PKK: