DCIT, Dehradun V. Weatherford Asia Pacific Pte Ltd., Noida

ITA 1241/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4181 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 03-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Tax effect

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH FRIDAY : NEW DELHI BEFORE SMT BEENA A PILLAI , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER MA NO. 215/DEL/2016 (IN ITA NO. 1241/ DEL/2015 ) (ASSESSMENT YEAR: 2011 - 12 ) DCIT, CIRCLE - II, DEHRADUN VS. WEATHERFORD ASIA PACIFIC PTE LTD,, CO SRBC & ASSOCIATES, CAS 4 TH & 5 TH FLOOR, PLOT NO. 2B, TOWER 2, GAUTAM BUDH NAGAR, NOIDA (APPELLANT) (RESPONDENT) IN ITA NO. 1241/ DEL/2015 (ASSESSMENT YEAR: 2011 - 12 ) DCIT, CIRCLE - II, DEHRADUN VS. WEATHERFORD ASIA PACIFIC PTE LTD,, CO SRBC & ASSOCIATES, CAS 4 TH & 5 TH FLOOR, PLOT NO. 2B, TOWER 2, GAUTAM BUDH NAGAR, NOIDA (APPELLANT) (RESPONDENT) REVENUE BY : MS. ASHIMA NEB, SR. DR ASSESSEE BY: NONE DATE OF HEARING 10/08 / 2018 DATE OF PRONOUNCEMENT 2 0 / 08 / 2018 O R D E R PER PRASHANT MAHARISHI , A. M. 1 . THIS MISCELLANEOUS APPLICATION IS FILED BY THE REVENUE IN ITA NO. 1241/DEL/2015 FOR ASSESSMENT YEAR 2011 - 12 FILED BY THE REVENUE VIDE CONSOLIDATED ORDER DATED 22.12.2015 DISMISSING THE APPEAL OF THE REVENUE HOLDING THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS RS. 1169740/ - . 2 . THE LD SR. DR, M/S. ASH I M A NEB REITERATED THE SAME FACTS. 3 . NONE APPEARED ON BEHALF OF THE ASSESSEE. DCIT VS. WEATHERFORD ASIA PACIFIC PTE LTD, MA NO. 215/DEL/2016 (IN ITA NO.1241/DEL/2015) (ASSESSMENT YEAR: 2011 - 12) PAGE | 2 4 . WE HAV E CAREFULLY CONSIDERED THE CONTENTION OF THE LD SR. DR AND FOUND THAT CONTENTION OF THE REVENUE IS CORRECT AND THERE IS MISTAKE APPARENT FROM THE RECORD. ACCORDINGLY, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE SUCCEEDS AND THE ORDER IS RECALLED. I T WAS POINTED OUT BY THE BENCH THAT IN VIEW OF THE LATEST CIRCULAR OF CBDT NO.03/2018 DATED 11 TH JULY 2018 THE TAX DEMAND IS LESS THAN RS. 20 LACS, THEREFORE, THE APPEAL IN ITA NO. 1241/DEL/2015 MAY BE DISPOSED OFF AT THIS STAGE ONLY. 5 . THE LD DR FAIRLY AGREED THAT AS THE TAX DEMAND INVOLVED IN THIS APPEAL IS ONLY RS. 1169740/ - THE SAME MAY ALSO BE DISPOSED OFF IN VIEW OF THE LATEST CIRCULAR NO.03/2018 DATED 11TH JULY 2018 ENHANCING THE LIMITATION OF TAX EFFECT OF RS. 20 LACS. 6 . WE HAVE CA REFULLY CONSIDERED THE CONTENTION OF THE REVENUE . THE APPEAL OF THE REVENUE IS BELOW THE THRESHOLD LIMIT AS PER THE LATEST CIRCULAR OF CBDT. THEREFORE, THE SAME CIRCULAR IS APPLICABLE TO THE PRESENT CASE OF THE REVENUE . 7 . WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 11TH JULY 2018 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE R ELEVANT 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. APPEALS 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. 8 . 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 DCIT VS. WEATHERFORD ASIA PACIFIC PTE LTD, MA NO. 215/DEL/2016 (IN ITA NO.1241/DEL/2015) (ASSESSMENT YEAR: 2011 - 12) PAGE | 3 DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES A RE 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. 9 . IN VIEW OF THE ABOVE, CI RCULAR 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 FIL ED BY THE REVENUE IS NOT MAINTAINABLE. 10 . IN VIEW OF THIS ITA NO. 1241/DEL/2015 FILED BY THE REVENUE IS DISMISSED. 11 . IN THE RESULT MISCELLANEOUS APPLICATION NO. 215/DEL/2016 FILED BY THE REVENUE IS ALLOWED AND FURTHER IN VIEW OF THE LATEST CIRCULAR OF CBDT THE ITA NO. 1241/DEL/2015 FOR ASSESSMENT YEAR 2011 - 12 FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 0 / 0 8 / 2018 . - S D / - - S D / - ( BEENA A PILLAI ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 0 / 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