ACIT, Chandigarh V. M/s Alchemist Ltd., Chandigarh

ITA 1142/CHANDI/2012

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3303 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 14-08-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 07-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A, CHANDIGARH , ! ' # $ %! , BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NOS.1142 & 1143/CHD/2012 / ASSESSMENT YEARS: 2007-08 & 2008-09 THE A.C.I.T., CIRCLE 1(1), CHANDIGARH. M/S ALCHEMIST LTD., SCO 12-13, SECTOR 9-D, CHANDIGARH. ./PAN NO: AABCT1238R /APPELLANT /RESPONDENT /ASSESSEE BY: SHRI ASHWANI KUMAR, CA ! / REVENUE BY: SMT.CHANDERKANTA, SR.DR ' # $ /DATE OF HEARING : 14.08.2019 %&'( $ /DATE OF PRONOUNCEMENT: 26.08.2019 /ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER : BOTH THE ABOVE APPEALS RELATE TO THE SAME ASSESSEE AND HAVE BEEN PREFERRED BY THE REVENUE AGAINST SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS), CHANDI GARH [(IN SHORT CIT(A)] BOTH DATED 31.8.2012 RELATING TO ASSESSMENT YEARS 2007-08 AND 2008-09 RESPECTIVELY, PASSED ITA NOS.1142 & 1143/CHD/2012 A.YS. 2007-0 8 * 2008-09 2 U/S 250(6) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT). 2. AT THE OUTSET, THE LD. AR POINTED OUT THAT THE CBDT, VIDE ITS RECENT CIRCULAR NO.17/2019 DATED 8/8/19, H AS ENHANCED THE MONETARY LIMIT FOR FILING APPEALS BY T HE DEPARTMENT BEFORE THE ITAT FROM RS. 20 LACS TO RS. 50 LACS. COPY OF THE AFORESAID CIRCULAR WAS PLACED BEFORE US . REFERRING TO THE SAME, LD.COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE CBDT HAD VIDE THIS CIRCULAR MODIFIED PARAS 3 AND 5 OF THE EARLIER CIRCULAR NO. 3/2018, WHICH DEA LT WITH THE MONETARY LIMITS FOR FILING APPEALS AND THE METH OD OF CALCULATING TAX EFFECT INVOLVED IN COMPOSITE ORDERS PASSED, RESPECTIVELY, LEAVING ALL OTHER CONDITIONS SPECIFIE D IN THE EARLIER CIRCULAR INTACT. OUR ATTENTION WAS DRAWN TO THE RELEVANT CONTENTS OF THE CIRCULAR AS UNDER: CIRCULAR NO. 17/2019 F.NO.279/MISC. 142/2007-ITJ(PT.) GOVERNMENT OF INDIA DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES JUDICIAL SECTION NEW DELHI. 8 TH AUGUST 2019 SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX 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 OF 2018 D ATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (TH E BOARD) AND ITS AMENDMENT DATED 20 TH AUGUST. 2018 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFO RE INCOME TAX ITA NOS.1142 & 1143/CHD/2012 A.YS. 2007-0 8 * 2008-09 3 APPELLATE TRIBUNAL. HIGH COURTS AND SLPS/APPEALS BE FORE SUPREME COURT HAVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIED 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 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E 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, INTHE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE T HAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT S PECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF A N ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EV EN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELL ATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDE R/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASS ESSEE SHALL BE DEALT 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 CO NCERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TA X ACT, 1961. 3. IT WAS THEREFORE STATED THAT THE APPLICABILITY OF THE CIRCULAR RETROSPECTIVELY TO PENDING APPEALS AS SPEC IFIED IN ITA NOS.1142 & 1143/CHD/2012 A.YS. 2007-0 8 * 2008-09 4 PARA 13 OF THE EARLIER CIRCULAR WOULD REMAIN. HE TH EREFORE STATED THAT SINCE THE TAX EFFECT INVOLVED IN THE PR ESENT CASE IS LESS THAN RS. 50 LACS, THE APPEALS ARE COVERED BY THE AFORESAID CIRCULAR AND ARE LIABLE TO BE DISMISSED . THE LD. DR HAS ALSO FAIRLY ADMITTED THAT CBDT CIRCULAR NO. 17/2019 IS APPLICABLE TO BOTH THE APPEALS. 4. WE HAVE CONSIDERED THE CONTENTIONS OF THE PARTIE S BEFORE US AND HAVE ALSO GONE THROUGH THE CBDT CIRCU LAR NO.17/2019 DATED 8/8/19, AND HAVE NOTED THE ENHANCE MENT IN MONETARY LIMITS FOR FILING APPEAL BY THE DEPARTM ENT TO THE ITAT TO RS.50 LACS FROM THE EARLIER LIMIT OF RS. 2 0 LACS WHICH WAS SPECIFIED VIDE CIRCULAR NO.3/2018.WE HAVE ALSO NOTED THAT THE CBDT HAS VIDE THIS CIRCULAR MODIFIED ONLY PARA 3 AND 5 OF ITS EARLIER CIRCULAR NO.3/2018 LEAV ING ALL OTHER PARAS INTACT. PARA 13 OF THE EARLIER CIRCULA R DEALT WITH APPLICABILITY OF THE CIRCULAR RETROSPECTIVELY TO PE NDING APPEALS ALSO AND READ AS UNDER: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTI VELY TO PENDING SLPS/ APPEALS/CROSS OBJECTIONS/ REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 AB OVE MAY BE WITHDRAWN/ NOT PRESSED. 5. SINCE THIS PARA HAS NOT BEEN MODIFIED BY THE REC ENT CIRCULAR, THE ENHANCED MONETARY LIMITS SPECIFIED I N THE RECENT CIRCULAR WILL APPLY TO THE PENDING APPEALS A LSO. ITA NOS.1142 & 1143/CHD/2012 A.YS. 2007-0 8 * 2008-09 5 IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 (SUPRA) R EAD ALONGWITH CIRCULAR NO.3/2018,THE PRESENT APPEALS OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 6. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT(A) ON MERITS. THE LEGAL ISSUE RAISED BY THE REVENUE IS BEING LEFT OPEN TO BE ADJUDICATED IN AN APPROPRI ATE CASE. 7. IN THE RESULT, BOTH THE DEPARTMENTAL APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ' # $ %! (SANJAY GARG) (ANNAPURNA GUPTA) /JUDICIAL MEMBER &' /ACCOUNTANT MEMBER )' /DATED: 26 TH AUGUST, 2019 * ! * &) *+,+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' - / CIT 4. ' - ( )/ THE CIT(A) 5. +./ 0 , $0 , 123/4 / DR, ITAT, CHANDIGARH 6. /35# / GUARD FILE &) ' / BY ORDER, / ASSISTANT REGISTRAR