ACIT, New Delhi V. M/s Geo Connect Ltd., New Delhi

ITA 111/DEL/2011

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4089 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 16-08-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 10-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C : NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER, AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO. 111/DEL /2011 ASSESSMENT YEAR: 2004-05 THE A.C.I.T. VS. M/S GEO CONENCT LTD CIRCLE - 12(1) 110, INDRAPRAKASH BLDG. NEW DELHI 21, BARAKHAMBA ROAD NEW DELHI [APPELLANT] [RESPONDENT] DATE OF HEARING : 16.08.2016 DATE OF PRONOUNCEMENT: 16.08.2016 APPELLANT BY : SHRI AMRIT LAL, S R. DR RESPONDENT BY : SHRI AJAY VOHRA, S R ADV. SHRI BHAVITA KUMAR, ADV ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE CIT(A)-XV, NEW DELHI, DATED 26/10/2010 FOR A.Y 2004-05. 2. THIS APPEAL HAS BEEN FIXED FOR HEARING IN VIEW O F THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVI SING THE MONETARY LIMIT OF RS.10.00 LAKH FOR NOT FILING THE APPEAL BE FORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME-TAX ACT. 2 ITA NO. 111 /DEL/2011 2 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATE D 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE F ILED BEFORE THE 1TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN R S.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THI S INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKHS MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT-DR APPEARING ON BEHALF OF THE RE VENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WIT HDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FUR THER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT B E CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULA R AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTH ER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE PRE SENT APPEAL OF THE REVENUE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PA RTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THESE APPEALS BY THE REVENUE IS BELOW RS. 10.00 LACS AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEALS PARTICULARLY BECAUSE THE PENDIN G APPEAL IS 3 ITA NO. 111 /DEL/2011 3 COVERED BY CIRCULAR IN VIEW OF PARA 10 OF THE CIRCU LAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE A SSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS.10 LACS OR IN ANY O THER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CU LLED OUT IN THE CIRCULAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEO US APPLICATION FOR RECALLING OF THIS ORDER WHICH THE TRIBUNAL WILL CON SIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN A CCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUES, INV OLVED IN THESE APPEALS, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LACS. 7. WE ARE ALSO INCLINED TO AGREE WITH THE CONTENTIO N OF THE LD. DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEP TANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WI LL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOL VED IN THIS APPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOS E YEARS IS MORE THAN RS. 10 LAKHS. WITH THESE DIRECTIONS WE DEEM IT PRO PER TO DISMISS THE APPEALS IN THE LIGHT OF THE CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER 2015. ACCORDINGLY, WITHOUT GOING INTO ME RITS OF THE CASE, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. 4 ITA NO. 111 /DEL/2011 4 8. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED AS WITHDRAWN. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 16.08 .16. SD/- SD/- (N.K. SAINI) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH AUGUST, 2016 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI