ACIT, New Delhi V. M/s. Bulland Buildtech Pvt. Ltd., New Delhi

ITA 1179/DEL/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3943 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 27-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S RAWAT
• Assessee Lawyers: C P JARWAL EMPLOYEE
• Keywords: Bogus Share capital; Tax effect

Judgement Text

ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 1 OF 15 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: A: NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 1179/DEL/2015 ( ASSESSMENT YEAR: 2007-08) ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-04, NEW DELHI. [ERSTWHILE CC-25, NEW DELHI] VS. M/S BULLAND BUILD T ECH PVT. LTD., R/O A-2, DEVIL ROAD, KHANPUR, NEW DELHI-62. PAN NO: AWNPK4829Q APPELLANT RESPONDENT REVENUE BY : SHRI D.S. RAWAT, SR. DR ASSESSEE BY : SHRI C.P. JARWAL, EMPLOYEE ORDER PER: ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE HAS BEEN FILED AGAINST T HE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-23, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 16.12.2014 FOR ASSESSMENT YEAR 2007-08. THE GROUND S OF APPEAL ARE AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN:- 1. THE ORDER OF THE CIT(A) IS NOT CORRECT IN LAW AN D FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 75,00,000/- OUT OF TOT AL ADDITION OF RS. 1,33,35,000/- ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 2 OF 15 (RS. 75,00,000 + 58,35,000) MADE BY AO ON ACCOUNT O F BOGUS SHARE APPLICATION MONEY. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ANY / A LL THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEA L. (B) AT THE OUTSET, AT THE TIME OF HEARING BEFORE US , THE BENCH NOTICED THAT TAX EFFECT IN THIS APPEAL IS WELL BELOW RS. 50,00,000/-. THE BENCH REFERRED TO THE RECENT CENTRAL BOARD OF DIRECT TAXES (CBDT, FOR SHORT) CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F. NO. 279/MISC. 142/2007-ITJ (PT.) WHEREIN MINIMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLAT E TRIBUNAL (ITAT, FOR SHORT) HAS BEEN ENHANCED TO RS. 50,00,000/- BY REVISING THE EA RLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.2018. THE LEARNED SR. DEPARTMENTAL REP RESENTATIVE (LD. SR. DR, FOR SHORT) ADMITTED THAT THE TAX EFFECT IN THE PRESENT APPEAL IS BELOW RS. 50,00,000/-. HOWEVER, HE STATED THAT CLARIFICATION FORM CBDT IS AWAITED AS TO WHETHER THE REVISED / ENHANCED MONETARY LIMIT OF RS. 50,00,000/- VIDE AFO RESAID CBDT CIRCULAR DATED 08/08/2019 WILL APPLY TO EXISTING APPEALS ALREADY F ILED BY REVENUE IN ITAT. (B.1) THE AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08/08/2017 READS AS UNDER: CIRCULAR NO. 17/2019 NEW DELHI. 8TH AUGUST 2019 SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS F OR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLA TE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIG ATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DA TED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (TH E BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VIDE WHICH MONETA RY LIMITS FOR ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 3 OF 15 FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFO RE INCOME TAX 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, TH E TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN IT 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 FIL ING 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 IS SUES 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 EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN A SSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE O RDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASS ESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEME NT 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 CON CERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TAX ACT, 1961. 7. HINDI VERSION WILL FOLLOW. ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 4 OF 15 (B.1.1) WE HAVE NOTED THAT VIDE CIRCULAR NO. 3/20 18 DATED 11 TH JULY, 2018 ISSUED BY CBDT IT WAS NOT ONLY DIRECTED THAT THE DEPARTMENT S HALL NOT FILE APPEAL BEFORE THE TRIBUNAL IN CASES WHERE THE TAX EFFECT DOES NOT EXC EED THE MONETARY LIMIT OF RS.20 LAKH; BUT IT WAS ALSO DIRECTED THAT THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS. IT WAS FURTHER DIRECTED IN AFORESAID CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018, THAT THE PENDING APPEALS BELOW THE SPEC IFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED BY THE DEPARTMENT. RELEVANT P ORTION OF THE AFORESAID CIRCULAR NO. 3/2018 DATED 11.07.2018 IS AS UNDER: THE CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJE CTIONS /REFERENCES TO BE FILED HENCEFORTH IN HON'BLE SUPREME COURT/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJEC TIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 AB OVE MAY BE WITHDRAWN/NOT PRESSED. (B.1.2) NOW, VIDE ITS AFORESAID RECENT CIRCULAR NO. 17/2019 DATED 08.08.2019, CBDT HAS AMENDED ITS AFORESAID EARLIER CIRCULAR NO.3/201 8 DATED 11.7.2018; AND IT HAS BEEN DIRECTED THAT MONETARY LIMIT FOR FILING THE DEPARTM ENTAL APPEAL IN INCOME TAX CASES BE ENHANCED FURTHER AND ACCORDINGLY, THE MONETARY LIMI T FOR FILING THE APPEAL BEFORE THE APPELLATE TRIBUNAL HAVE BEEN ENHANCED TO RS.50 LAKH S THROUGH AMENDMENT OF PARAGRAPH 3 OF AFORESAID CIRCULAR NO. 3/2018 DATED 11.07.2018. AFORESAID CIRCULAR NO.17/2019 DATED 08.08.2019 HAS BEEN ISSUED TO REVI SE / ENHANCE THE MONETARY LIMIT OF TAX EFFECT TO RS. 50,00,000/- AS COMPARED TO THE MONETARY LIMIT OF RS. 20,00,000/- VIDE CBDTS EARLIER CIRCULAR NO. 3/2018 DATED 11.7. 2018; WITHOUT, HOWEVER, IN ANY WAY ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 5 OF 15 AMENDING ANY OTHER MATERIAL PART OF THE AFORESAID C BDT CIRCULAR DATED 11.07.2018. MORE PARTICULARLY, THERE IS NOTHING IN THE AFORESAI D RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 TO INFER THAT DIRECTION CONTAINED IN AFORESAID EARLIER CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 TO WITHDRAWN / NOT PRESS EXISTING APPEALS (BELOW SPECIFIED MONETARY LIMIT OF TAX EFFECT) ALREADY FILED BY REVE NUE IN ITAT; DOES NOT CONTINUE TO BE APPLICABLE. THEREFORE, ALL THE PROVISIONS OF AFORES AID EARLIER CIRCULAR NO. 3/2018 DATED 11.7.2018 SHALL APPLY MUTATIS MUTANDIS TO RECENT AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 ALSO. ACCORDINGLY, THE DIRECTION IN AFORESAID EARLIER CIRCULAR DATED 11.07.2018 TO WITHDRAW / NOT PRESS REVENUES APPEAL WITH TAX EFFECT BELOW RS. 20,00,000/-; IN VIEW OF RECENT AFORESAID CIRCULAR D ATED 08.08.2019; IS NOW TO BE READ AS DIRECTION TO WITHDRAW /NOT PRESS REVENUES APPEAL W ITH TAX EFFECT BELOW REVISED / ENHANCED LIMIT OF RS. 50,00,000/-. (B.2) FOR OUR AFORESAID VIEW, IN THE FOREGOING PARA GRAPH (B.1.2) OF THIS ORDER; WE TAKE STRENGTH FROM VIEW EXPRESSED IN A RECENT PRECEDENT IN THE CASE OF INCOME TAX OFFICER, WARD 3(2), AHMADABAD VS. DINESH MADHAVLAL PATELIN ( ITA NO.- 1398/AHD/2004 FOR ASSESSMENT YEAR 1998-99), AND 627 OTHERS; IN WHICH, VIDE ORDER DATED 14.08.2019, A BENCH OF INCOME TAX APPELLATE TRIBUNAL, AHMADABAD [ CORAM: JUSTICE P P BHATT, PRESIDENT, AND PRAMOD KUMAR, VICE PRESIDENT] IT WAS HELD, AT PARAGRAPH 7 OF THE AFORESAID ORDER DATED 14/08/2019, THAT RELAXATION I N MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FI LED HENCEFORTH. THIS DECISION HAS ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 6 OF 15 ALREADY BEEN REPORTED IN 2019-TIOL-1556-ITAT-AHM, A ND THE RELEVANT PORTION OF THE AFORESAID ORDER DATED 14.08.2019 OF A BENCH, ITAT , AHMADABAD, CONTAINED DETAILED DISCUSSION OF THE ISSUE, IS REPRODUCED AS UNDER: 1. THESE 628 APPEALS AND COS PERTAIN TO THE APPEAL S ARE FILED BY VARIOUS ASSESSING OFFICER, ALL THESE APPEALS CALL I NTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONER OF INCOME TAX (APPEALS) AND, MOST IMPO RTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT E XCEED RS. 50,00,000 IN EACH OF THESE APPEALS. THE CROSS OBJEC TIONS TAKEN UP FOR HEARING ARE ONLY SUCH CROSS OBJECTIONS AS EMANA TE FROM THESE APPEALS AND ARE BROADLY IN SUPPORT OF THE ORDERS PA SSED BY THE COMMISSIONER (APPEALS). IN THESE CASES, IN THE LIGH T OF THE DISCUSSIONS WITH THE PRINCIPAL CHIEF COMMISSIONER O F INCOME TAX (GUJARAT) AND REPRESENTATIVES OF THE AHMEDABAD ITAT BAR ASSOCIATION, INDIVIDUAL NOTICES ARE DISPENSED WITH; NOTICES OF HEARING ARE GIVEN ONLY THROUGH THE NOTICE BOARD. 2. IT IS IN THIS BACKDROP THAT WE ARE PLEASED TO T AKE NOTE OF A VERY PRAGMATIC AND TAXPAYER FRIENDLY POLICY DECISIO N BY THE GOVERNMENT OF INDIA FOR REDUCING THE INCOME TAX LIT IGATION. VIDE CBDT CIRCULAR DATED 8TH AUGUST, 2019, THE INCOME TA X DEPARTMENT HAS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING A PPEALS AGAINST THE DECISIONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIM ITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS , THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST THE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OVERALL TAX EFFECT, EXCLUDING INTEREST- EXCEPT WHEN INTEREST ITSELF IS IN DISPUTE, IS RS 50 ,00,000 OR LESS. WHAT IT MEANS, IN PLAIN WORDS, IS THAT WHEN A COMMI SSIONER (APPEALS) GIVES THE TAXPAYER TAX RELIEF OF UPTO RS 50 LAKHS IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE COMMISSIONER (APPEALS) CANNOT BE CHALLENGED BEFORE THIS TRIBUNAL, THAT WHEN THIS TRIBUNAL GIVES THE TAXPAYER RELIEF OF UPTO RS 1 CRORE IN AN APPEAL IN AN ASSESS MENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE TRIBUNAL CANNOT BE CHALLENGED BEFORE THE HONBLE HIGH COURT, AND TH AT WHEN HON'BLE HIGH COURT GIVES RELIEF OF UPTO RS 2 CRORE TO THE T AXPAYER IN AN APPEAL IN AN ASSESSMENT YEAR, THAT RELIEF CANNOT BE CHALLENGED BEFORE HONBLE SUPREME COURT. THESE MONETARY THRESH OLD LIMITS FOR FILING OF APPEALS BY THE INCOME TAX AUTHORITIES DO NOT TAKE INTO ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 7 OF 15 ACCOUNT INTEREST AND OTHER COROLLARIES OF THE TAX D EMANDS BEING CONFIRMED SUCH AS PENALTIES, EXCEPT WHEN A PENALTY ITSELF IS SUBJECT MATTER OF LITIGATION, AND PROSECUTIONS. THE ENHANCE MENT OF THESE MONETARY LIMITS IS AT AN UNPRECEDENTED SCALE. THE M ONETARY LIMIT FOR APPEALS BEFORE THIS TRIBUNAL, WHICH WAS RS 3,00 ,000 TILL 10TH JULY 2014, HAS BEEN IN EFFECT ENHANCED TO ALMOST 1, 700% IN THE LAST FIVE YEARS. THIS SUBSTANTIAL RELAXATION IS CERTAINL Y A HUGE STEP WHICH SIGNIFIES TRUST REPOSED BY THE GOVERNMENT OF INDIA IN THE DECISIONS OF THE APPELLATE FORUMS, AND SUBSTANTIALLY CUTS DOW N TIME TAKEN IN THE FINALITY OF THE APPELLATE PROCESS. IT IS INDEED HEARTENING TO NOTE THAT IN ONE STROKE, THE GOVERNMENT HAS NOT ONLY PRE VENTED, BUT HAS. IN EFFECT, SET THE STAGE FOR WITHDRAWAL OF THOUSAND S OF APPEALS BEFORE THIS TRIBUNAL AND BEFORE HONBLE COURTS ABOV E. IN AN ENVIRONMENT IN WHICH RETROSPECTIVITY WAS ATTACHED O NLY TO THE TAXATION AND NOT TO TAX RELIEFS OR CONCESSIONS, SUC H AN APPROACH IS A PLEASANT DEPARTURE FROM LEGACY PRACTICES. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE GENEROUS CONCESSION BY THIS BENEVOLENT CBDT CIRCULAR, ALL TH ESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJ ECTIONS MUST BE DISMISSED AS INFRUCTUOUS. THERE IS. HOWEVER, A SMAL L ISSUE THAT WE MUST DEAL WITH. 4. SMT APARNA AGARWAL, LEARNED DEPARTMENTAL REPRESE NTATIVE, HOWEVER, HAS A POINT TO MAKE. SHE POINTS OUT THAT T HE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT CLEARLY RETROSPECTIVE INASMUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT (T)HE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIR CULAR'. IT IS THUS POINTED OUT THAT THIS SENTENCE GIVES AN IMPRES SION THAT IS ONLY AFTER THE DATE OF THE SAID CIRCULAR THAT THE DEPART MENTAL APPEALS WILL NOT BE FILED IN THE CASES WITHIN THE SPECIFIED TAX EFFECT LIMITS. WE ARE URGED TO BEAR IN MIND THE IMPACT OF THIS OBSERV ATION WHILE GIVING EFFECT TO THE CIRCULAR DATED 8 TH AUGUST, 2019. SHE. HOWEVER, HASTENS TO ADD THAT SHE IS YET TO HAVE ANY SPECIFIC INSTRUCTIONS ON THE ISSUE AND SHE LEAVES IT FOR THE BENCH TO TAKE T HE APPROPRIATE CALL. LEARNED REPRESENTATIVES APPEARING FOR THE TAX PAYERS VEHEMENTLY OPPOSE THE SUGGESTION IMPLICIT IN HER SU BMISSIONS. ALL OF THEM ARE UNANIMOUS IN THEIR ARGUMENT THAT THE CIRCU LAR MUST BE HELD TO HAVE RETROSPECTIVE APPLICATION AND MUST EQU ALLY APPLY TO THE PENDING APPEALS AS WELL SHRI J P SHAH. SENIOR ADVOC ATE, POINTS OUT THAT THE CIRCULAR DATED 8' H AUGUST 2019 I NOT A STANDALONE CIRCULAR AND IT IS REQUIRED TO BE READ WITH THE OLD CIRCULAR NO. 3 OT 2018 WHICH IS WHAT IT SEEKS TO MODIFY. THIS CIRCULAR, AC CORDING TO THE ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 8 OF 15 LEARNED COUNSEL, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. HE URGES US NOT TO READ THE CIR CULAR IN A MANNER SO AS TO NULLIFY THE UNDERLYING APPROACH AND OBJECT OF REDUCING LITIGATION. SHRI SOPARKAR, LEARNED SENIOR ADVOCATE, SUBMITS THAT ALL THAT THE PRESENT CIRCULAR DOES IS TO MODIFY THE MON ETARY LIMITS AND NOTHING MORE, AND, THEREFORE, IT CANNOT BE TREATED TO FOLLOW ANY OTHER APPROACH OTHER THAN THE APPROACH FOLLOWED IN THE OLD CIRCULAR. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY , CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF IS SUANCE OF CIRCULAR. SHRI TUSHAR HEMANI, LEARNED SENIOR ADVOCA TE, POINTS OUT THAT THE CIRCULAR DATED 8 TH AUGUST 2019 ONLY GIVES FURTHER RELIEF NOT ONLY IN TERMS OF THE MONETARY LIMITS BUT ALSO IN TE RMS OF THE MANNER IN WHICH THE APPLICATION OF CIRCULAR TO ORDERS DEAL ING WITH MORE THAN ONE YEAR IS TO MADE. SHRI S N DIVETIA, LEARNED COUN SEL FOR THE ASSESSEE, SUBMITS THAT UNLIKE IN THE CASES OF EARLI ER CBDT CIRCULARS, WHICH USED TO BE IN SUPERSESSION OF EARLIER CIRCULA RS ON THE ISSUES, THE CIRCULAR DATED 8 TH AUGUST 2019 ONLY MODIFIES THE EARLIER CIRCULAR WHICH, INTER ALIA, PROVIDED FOR ITS RETROSPECTIVE A PPLICATION. OUR ATTENTION IS INVITED TO SOME JUDICIAL PRECEDENTS IN SUPPORT OF THE CONTENTION THAT THE BENEVOLENT CIRCULAR, SUCH AS TH E ONE IN QUESTION, IS TO BE GIVEN EFFECT IN RESPECT OF THE P ENDING APPEALS AS WELL. MS URVASHI SHODHAN. LEARNED COUNSEL FOR THE A SSESSEE, POINTS OUTS THAT ITS PLAINLY CONTRARY TO THE SCHEME OF THE LITIGATION POLICY OF THE GOVERNMENT OF INDIA TO GIVE THIS CIRCULAR ON LY PROSPECTIVE EFFECT. SHRI S K SADHWANI, LEARNED COUNSEL FOR THE ASSESSEE, INVITES OUR ATTENTION TO THE LETTER DATED 16 TH JULY 2018 ISSUED BY MEMBER CBDT TO THE ALL THE PRINCIPAL CHIEF COMMISSIONERS O F INCOME TAX, IN THE CONTEXT OF CIRCULAR DATED 11 TH JULY 2018 THAT THE PRESENT CIRCULAR SEEKS TO MODIFY, SEEKING REPORT ON WITHDRAWAL OF TH E APPEALS COVERED BY THE CIRCULAR. HE THEN POINTS OUT TMT IT IS THE OLD CIRCULAR IS STILL ALIVE TODAY AND THE ONLY CHANGE IS WITH RE SPECT TO THE MONETARY LIMITS. IN ALL FAIRNESS, THEREFORE, THE SA ME APPROACH REGARDING WITHDRAWAL OF PENDING APPEALS MUST BE FOL LOWED FOR THIS CIRCULAR AS WELL. ON THE SAME LINES, ARGUMENTS ARE ADVANCED BY THE LEARNED REPRESENTATIVES WHICH, FOR THE SAKE OF BREV ITY AND TO AVOID REPETITION, WE ARE NOT REFERRING TO IN MORE SPECIFI C DETAILS. IN BRIEF REJOINDER, LEARNED DEPARTMENTAL REPRESENTATIVE GRAC IOUSLY LEAVES THE MATTER TO US. 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAV ING PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HES ITATION IN HOLDING THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY A PPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALL Y APPLICABLE TO THE ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 9 OF 15 APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8 ,H AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCU LAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS I S EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 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.) / 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 O F APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER 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 TH E FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFEC T SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF I N THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN M ORE 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 S HALL HE 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 RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. I N ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 10 OF 15 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 FROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINE D INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHI CH IS AS FOLLOWS: 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 RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HO LD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPE ALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FI LED HENCEFORTH. (B.2.1) MOREOVER, IN THE FOLLOWING PRECEDENTS, CO -ORDINATE BENCHES OF INCOME TAX APPELLATE TRIBUNAL, DELHI; HAVE ALREADY TAKEN THE V IEW THAT THE AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 SHALL ALSO APPLY RETRO SPECTIVELY TO PENDING APPEALS: (I) ORDER DTD. 19/08/2019 OF F BENCH OF ITAT, DE LHI IN ITA NOS. 5136 & 5137/DEL/2016 FOR A.Y. 2009-10 & 2010-11 IN THE CASE OF ACIT VS. PRATEEK BUILDTECH INDIA P. LTD. (II) ORDER DTD. 19/08/2019 OF B BENCH OF ITAT, DE LHI, IN ITA NO. 4497/DEL/2016 FOR A.Y. 2011-12 IN THE CASE OF ITO V S. M/S BSA HOMES PVT. LTD. ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 11 OF 15 (III) ORDER DTD 19/08/2019 OF C BENCH OF ITAT, DE LHI IN THE CASE OF ACIT VS. ISHAM SYSTEM (P) LTD. FOR A.Y. 2012-13 IN ITA NO. 4276/DEL/2016. (B.2.2) A PERUSAL OF THE AFORESAID RECENT CBDT CIRC ULAR DATED 08.08.2019 SHOWS THAT MINIMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF SPECIAL LEAVE PETITION (SLP FOR SHORT) IN HONBLE SUPREME COURT HAS ALSO BEEN ENHANCED TO RS. 2,00,000/-. VIDE SEPARATE ORDERS, EACH DATED 16.08.2019, HONBLE SUPREME COUR T HAS ALREADY DISMISSED THE FOLLOWING SLPS FILED BY REVENUE EARLIER; SINCE THE TAX EFFECT INVOLVED IN EACH OF THESE CASES WAS LESS THAN RS. 2,00,000/-: (I) SPECIAL LEAVE PETITION (CIVIL) DIARY 25086/2019 IN THE CASE OF CIT V/S M/S HONGKONG AND SHANGHAI BANKING CORPORATION LTD. (ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 06-02-2019 IN ITA NO. 1650/2016 PASSED BY THE HIGH COURT OF JUDICATURE AT BOMBAY) (II) SPECIAL LEAVE PETITION (CIVIL) DAIRY NO. 26373 /2019 IN THE CASE OF DCIT VS. EB HOLDING COMPANY LTD. (ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 25-01-2019 IN WP NO. 3642/2018 PASSED B Y THE HIGH COURT OF JUDICATURE AT BOMBAY) (III) SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 2149 7/2019 IN THE CASE OF PR. CIT VS. KESHAV POWER LTD. (ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 07-09-2018 IN ITA NO. 277/2018 PASSED BY THE HIGH COURT OF DELHI AT NEW DELHI) ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 12 OF 15 (IV) SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 2507 6/2019 IN THE CASE OF PR. CIT VS. MEENAKSHI MODI. (ARISING OUT OF IMPUGNED FI NAL JUDGMENT AND ORDER DATED 24-01-2019 IN DBITA NO. 156/2018 PASSED BY TH E HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR) (B.2.3) MOREOVER, VIDE F.NO. 279/MISC/M-93/2018-ITJ , DATED 20 TH AUGUST, 2019; CLARIFICATION HAS BEEN ISSUED BY CBDT THAT REVISED MONETARY LIMITS MENTIONED IN CIRCULAR NO. 17/2019 IS APPLICABLE TO ALL PENDING S LPS / APPEALS / CROSS OBJECTIONS / REFERENCES. IT READS AS UNDER: F. NO. 279/MISC/M-93/2018-ITJ GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES ********** ROOM NO. 12, 5 TH FLOOR, JEEVANVIHAR BUILDING, PARLIAMENT STREET, NEW DELHI. DATED THE 20 TH AUGUST, 2019. TO, ALL PR. CHIEF COMMISSIONERS OF INCOME TAX SUB: WITHDRAWAL OF PENDING CASES AFTER ENHANCEMENT OF MONETARY LIMITS MATTER REG; REF. CIRCULAR NO. 17/2019 DATED 8 TH AUGUST, 2019 (F.NO. 279/MISC. 142/2007- ITJ(PT) AND CIRCULAR NO. 3 OF 2018. SIR, KINDLY REFER TO THE AFORESAID SUBJECT. REPRESENTAT IONS HAVE BEEN RECEIVED FROM THE FIELD, SEEKING CLARIFICATIONS ON APPLICABILITY OF CIRCULAR 17 OF 2019 ON PENDING APPEALS. 2. IN THIS REGARD, IT IS STATED THAT CIRCULAR 17 OF 2019 RELAXES THE MONETARY LIMITS AS MENTIONED IN THE TABLE THERE IN AND ALL OTHER PA RAS, EXCEPT PARA 5 OF CIRCULAR 3, RELATING TO COMPOSITE ORDERS SHALL BE APPLICABLE IN TOTO. 3. THEREFORE, IT IS CLEAR THAT THE REVISED MONETARY LIMITS SO MENTIONED IN CIRCULAR 17/2019 IS APPLICABLE, TO ALL PENDING SLPS/APPEALS/ CROSS OBJECTIONS/REFERENCES. ALL SUCH PENDING APPEALS WITHIN THE REVISED LIMITS SHAL L BE WITHDRAWN ON OR BEFORE 31.10.2019 AND A FORTNIGHTLY REPORT AS TO PROGRESS ON WITHDRAWALS SHOULD BE SUBMITTED TO BOARD, BY 15 TH & 31 ST OF EVERY MONTH. ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 13 OF 15 4. THIS ISSUES WITH THE APPROVAL OF THE CHAIRMAN, C BDT. ENCL. AS ABOVE YOURS FAITHFULLY, SD/- (ABHISHEKGAUTAM) DCIT (OSD) (ITJ-I), CBDT TELE: 011-23741832 COPY TO: 1. PR. DCIT (L&R) FOR KIND INFORMATION & N ECESSARY ACTION 2. DATABASE CELL FOR UPLOADING ON IRSOFFIC ERONLINE. (B.3) IN VIEW OF THE FOREGOING DISCUSSION, AND RESP ECTFULLY FOLLOWING THE PRECEDENTS MENTIONED IN FOREGOING PARAGRAPHS (B.2) , (B.2.1) A ND (B.2.2) OF THIS ORDER, WE ARE OF THE FIRM VIEW THAT THE REVISED / ENHANCED MINIMUM THRESHOLD LIMIT OF T AX EFFECT OF RS. 50,00,000/- VIDE AFORESAID RECENT CBDT CIRC ULAR NO. 17/2019 DATED 08.08.2019 IS APPLICABLE NOT ONLY FOR APPEALS TO BE FILED BY REVENUE IN FUTURE; BUT ALSO FOR APPEALS ALREADY FILED BY REVEN UE IN ITAT. ACCORDINGLY, IN VIEW OF THE AFORESAID RECENT CBDT CIRCULAR NO. 17/2 019 DATED 08/08/2019; THE DIRECTION IN AFORESAID EARLIER CIRCULAR DATED 1 1.07.2018 TO WITHDRAW /NOT PRESS REVENUES APPEAL WITH TAX EFFECT BELOW RS. 20 ,00,000/-; IS NOW TO BE READ AS DIRECTION TO WITHDRAW / NOT PRESS REVENUES APPEAL WITH TAX EFFECT BELOW REVISED / ENHANCED LIMIT OF RS. 50,00,000/-. BY NECESSARY IMPLICATION, THEREFORE, ALL EXISTING APPEALS IN ITAT, HAVING TAX EFFECT BELOW THE REVISED / ENHANCED LIMIT OF RS. 50,00,000/-, ARE TO BE TREATE D AS WITHDRAWN / NOT PRESSED; AND ARE, NOT MAINTAINABLE. WE ALSO HOLD, IN VIEW OF THE FOREGOING, THAT THE RELAXATION IN MONETARY LIMITS FOR FILING OF APPEALS BY REVENUE IN ITAT, ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 14 OF 15 VIDE AFORESAID CBDT CIRCULAR DATED 08.08.2019 SHALL BE APPLICABLE ALSO TO THE PENDING APPEALS IN ITAT ALREADY FILED BY REVENUE. IT IS WELL SETTLED THAT CBDT CIRCULARS AND INSTRUCTIONS, WHICH ARE BENEFICIAL FO R ASSESSEE, ARE BINDING ON THE AUTHORITIES BELOW. ACCORDINGLY, THIS APPEAL FILED BY REVENUE IS TREA TED AS WITHDRAWN / NOT PRESSED BY REVENUE; AND HELD TO BE NOT MAINTAINABLE HAVING REGARD TO THE AFORESAID CBDT CIRCULAR DATED 08.08.2019. WE C LARIFY THAT REVENUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL S EEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THE APPEAL, IF IT IS FOUND THAT APPE AL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULAR DATED 08.08.2019. (C) IN THE RESULT, THIS APPEAL IS DISMISSED BEING W ITHDRAWN / NOT PRESSED AND NOT MAINTAINABLE. ORDER PRONOUNCED IN THE OPEN COURT ON 22/8/2019. SD/- SD/- (H.S. SIDHU) (ANADEE NATH MISSHRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 22.08.2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 1179/DEL/2015. BULLAND BUILDTECH PVT. LTD. PAGE 15 OF 15 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 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