M/s. Jaycee Polymers Pvt. Ltd., New Delhi V. ITO, New Delhi

CO 56/DEL/2013

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 4079 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 4 month(s) 10 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2003-2004
• Appeal Filed On: 22-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DEEPAK OSTWAL
• 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. 5316 &5317 /DEL/ 2010 (ASSESSMENT YEAR: 2003 - 04 AND 2004 - 05 ) ITO, WARD - 4(2), ROOM NO. 413A, CR BUILDING, IP ESTATE, NEW DELHI VS. JAYCEE POLYMERS PVT. LTD, B - 925, SECTOR - 1, AVANTIKA, ROHINI, NEW DELHI PAN: AAACJ2907N (APPELLANT) (RESPONDENT) CO NO. 56 & 57/DEL/2010 (IN ITA NO.5316 &5317/DEL/2010) (ASSESSMENT YEAR: 2003 - 04 AND 2004 - 05) JAYCEE POLYMERS PVT. LTD, B - 925, SECTOR - 1, AVANTIKA, ROHINI, NEW DELHI PAN: AAACJ2907N VS. ITO, WARD - 4(2), ROOM NO. 413A, CR BUILDING, IP ESTATE, NEW DELHI (APPELLANT) (RESPONDENT) REVENUE BY : SHRI AMIT JAIN, SR. DR ASSESSEE BY: SHRI DEEPAK OSTWAL, AR DATE OF HEARING 26/07/2018 DATE OF PRONOUNCEMENT 0 1 / 0 8 /2018 O R D E R PER BENCH 1 . TH ESE ARE THE APPEALS FILED BY THE DEPARTMENT AND THE ASSESSEE AGAINST THE ORDER OF LD CIT(A) - VII, DATED 22.09.2010 NEW DELHI FOR THE ASSESSMENT YEAR 2003 - 04 AND 2004 - 05 . 2 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.03/2018 DATED 1 1 TH 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 ITO VS. JAYCEE POLYMERS PVT. LTD ITA NO.5316 &5317/DEL/2010 CO NO. 56 & 57/DEL/2010 (ASSESSMENT YEAR: 2003 - 04 AND 2004 - 05) PAGE | 2 OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. LD AR ALSO REITERATED SAM E FACTS. 3 . WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 11 TH JULY 2018 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HI GH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.NO. APPEAL S 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 DI RECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT 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 PENDING 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. 6 . IN THE RESULT APPEALS FILED BY THE REVENUE ARE DISMISSED. 7 . AS THE APPEALS OF THE REVENUE ARE DISMISSED THEREFORE, THE APPEALS FILED BY THE ASSESSEE BECOME INFRACTUOUS AND THEREFORE, SAME ARE DISMISSED. ITO VS. JAYCEE POLYMERS PVT. LTD ITA NO.5316 &5317/DEL/2010 CO NO. 56 & 57/DEL/2010 (ASSESSMENT YEAR: 2003 - 04 AND 2004 - 05) PAGE | 3 8 . IN THE RESULT APPEALS FILED BY REVENUE AND THE ASSESSEE ARE DISMISSED FOR THE BOTH THE YEARS. ORDER PRONOUNCED IN THE OPEN COURT ON 0 1 / 0 8 /2018 . - S D / - - S D / - (AMIT SHUKLA) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 1 / 0 8 /2018 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI