ITO, New Delhi V. M/s. Mission Holdings Pvt. Ltd., New Delhi

ITA 1408/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3330 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 07-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E, NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO.1408/DEL/2017 ASSESSMENT YEAR: 2012-13 INCOME TAX OFFICER, WARD-16(4), NEW DELHI VS. M/S. MISSION HOLDINGS PVT. LTD., 311, 3 RD FLOOR, VARDHMAN PLAZA, SECTOR-12, DWARKA, NEW DELHI PAN :AAACF2095H (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THE PRESENT APPEAL BY THE REVENUE IS DIRECTED AGA INST ORDER DATED 28.12.2016, PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-33, NEW DELHI, FOR ASSESSMENT YEAR 20 12-13. 2. AT THE OUTSET, THE LEARNED SR. DR BROUGHT TO OUR A TTENTION THAT CBDT, VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST, 2019, HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY A PPEAL BEFORE THE TRIBUNAL, IF THE TAX EFFECT IS LESS THAN RS.50 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDE D AS PER THE INSTRUCTION OF THE CBDT. APPELLANT BY SHRI F.R. MEENA, SR.DR RESPONDENT BY NONE DATE OF HEARING 05.11.2019 DATE OF PRONOUNCEMENT 13.11.2019 2 ITA NO.1408/DEL/2017 3. WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17/2019 DA TED 08.08.2019, HAS ENHANCED THE MONETARY LIMIT FOR FIL ING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE T RIBUNAL FROM RS.20 LAKHS TO RS.50 LAKHS. THE SAID CIRCULAR ALSO MAKES REFERENCE TO THE EARLIER CIRCULAR NO. 3/2018, DATED 11.7.2018 AND, ESPECIALLY STATES THAT AS A STEP TOWARDS FURTH ER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE APPEALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE EARLIER CIRCULAR BUT ONLY AMENDS THE MONETARY LIMIT S AS WELL AS GIVES CLARIFICATION WITH REGARD TO PARAGRAPH 5 OF T HE EARLIER CIRCULAR. THIS, INTER ALIA, MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN THE EARLIER CIRCULAR NO. 3 OF 2018 DAT ED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT, IT WILL APPLY TO ALL THE PENDING APPEALS. FOR THE SAKE OF READY REFERENCE, R ELEVANT PORTION OF THE LATEST CIRCULAR, I.E., CIRCULAR NO. 17/2019, DATED 08.08.2019, IS REPRODUCED AS UNDER: SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPE LLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DA TED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 20 18 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBU NAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT H AVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIV ED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE RE MOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED F URTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTION ED 3 ITA NO.1408/DEL/2017 ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS F OLLOWS: 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, IN 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 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. FURTHE R, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE 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 CON CERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TAX ACT, 1961. 4. FURTHER, CBDT VIDE CIRCULAR DATED 20 TH AUGUST, 2019 (F. NO. 279/19-93/2018-ITJ), HAS CLARIFIED THAT IT WILL APP LY TO ALL PENDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIR CULAR, THE APPEAL OF THE REVENUE IS DISMISSED AS NON-MAINTAINA BLE AS THE 4 ITA NO.1408/DEL/2017 TAX EFFECT INVOLVED IN THE APPEAL IS BELOW RS.50 LA KHS. HOWEVER, IT IS MADE CLEAR THAT THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THE ORDE R, IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMI T OF RS.50,00,000/- OR ANY OF THE CONDITIONS ETC., AS AV AILABLE IN THE AMENDMENT CARRIED OUT IN PARA 10 OF CIRCULAR NO. 3/ 2018, DATED 20.08.2018, IS MADE OUT. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 13 TH NOVEMBER, 2019. SD/- SD/- (BHAVNESH SAINI) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 13 TH NOVEMBER, 2019. RK/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI