ACIT, New Delhi V. M/s. Glencore India Pvt. Ltd., New Delhi

ITA 1451/DEL/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7019 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I1
• Next Hearing Date: 15-02-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 28-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAHUL GARGH
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH I-1, NEW DELHI BEFORE SHRI R.S.SYAL, ACCOUNTANT MEMBER SHRI KULDIP SINGH, JUDICIAL MEMBER I.T.A. NOS.1451 /DEL/2012 (ASSESSMENT YEARS 2005-06) ACIT VS. GLENCORE INDIA P VT. LTD. CIRCLE-12(1) 806, MEGHDOOT, NEW DELHI 94, NEHRU PLACE NEW DELHI PAN : AAACG3787B APPELLANT) (RESPONDENT) ASSESSEE BY : SH. VIKAS YADAV, C.A. REVENUE BY : SH. RAHUL GARGH. SR., DR DATE OF HEARING: 15.02.2016 DATE OF PRONOUNCEMENT: 17.02.2016 ORDER PER KULDIP SINGH, JM: THE APPELLANT (HEREINAFTER REFERRED TO AS 'THE REVE NUE') BY FILING THE AFORESAID APPEAL, SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 25.01.2012 PASSED BY LD. CIT(A)-XX, NEW DELHI QUA THE ASSESSM ENT YEAR 2005-06. 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFFECT AS PER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER 2015 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX E FFECT IS LESS THAN 2 I.T.A.NO.1451/DEL/2012 GLENCORE INDIA PVT. LTD. RS.10,00,000/- AND THIS FACTUAL POSITION HAS BEEN F AIRLY CONCEDED BY THE LD. D.R. THE LD. A.R. CONTENDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT CIRCULAR (SUPRA). 3. WE HAVE HEARD PARTIES ON THE ISSUE IN CONTROVER SY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIRCULAR (SUPRA ) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTM ENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME CO URT HAS BEEN REVISED AND THE RELEVANT PORTION OF THE AFORESAID C IRCULAR IS EXTRACTED AS UNDER: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S.NO. APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 10,00,000 2 BEFORE HIGH COURT 20,00,000 3 BEFORE SUPREME COURT 25,00,000 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PR ESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARA 3 ABOVE MAY BE WITHDRAWN / NOT PRESSED. APPEALS BEFORE THE SUPR EME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OP ERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. ' 4. THE CONTENTION OF LD. SR. D.R. THAT SHE NEEDS S OME TIME TO PROCURE THE REPORT FROM THE ASSESS ING OFFICER TO WORK OUT THE TAX EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEAL IN QUESTION IS COVERED UNDER CBDT CIRCUL AR NO.21/2015 DATED 10 TH DECEMBER 2015 (SUPRA), THE REVENUE CANNOT IMPORT T HE FACTS WITHIN 3 I.T.A.NO.1451/DEL/2012 GLENCORE INDIA PVT. LTD. THE KNOWLEDGE OF THE ASSESSING OFFICER TO FURTHER P ROLONG THE MATTER. HOWEVER, IN CASE ANY FACT WHICH IS OTHERWISE NOT ON RECORD, WARRANTS THE RESTORATION OF THE PRESENT APPEAL, THE REVENUE IS A T LIBERTY TO APPROACH THE TRIBUNAL UNDER RELEVANT PROVISIONS OF LAW. 5. IN VIEW OF THE CBDT CIRCULAR NO.21 DATED 10.12.2 015 HAVING RETROSPECTIVE EFFECT AND WHAT HAS BEEN DISCUSSED AB OVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MA INTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.10,00,000/- HENCE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEE N BECOME INFRUCTUOUS. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH FEB., 2016. SD/- SD/- (R.S.SYAL) (KULD IP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 17 TH FEB 2016 BINITA COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER 4 I.T.A.NO.1451/DEL/2012 GLENCORE INDIA PVT. LTD. NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 16.02.2016 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 16.02.2016 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT SR. PS/PS 7 FILE SENT TO BENCH CLERK 19.02.2016 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER