ACIT, C-2(1), Chandigarh V. Sh. Sumit Passi, Chandigarh

ITA 1684/CHANDI/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3642 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 25-02-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 21-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ATUL MANDHAR
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH !'# , $ !% &' ' ( ) * + , !% BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NOS.1684 TO 1689/CHD/2017 / ASSESSMENT YEARS : 2008-09 TO 2013-14 THE A.C.I.T. CIRCLE-2(1), CHANDIGARH. SH.SUMIT PASSI, # 18, SECTOR-5, CHANDIGARH. ./PAN NO: ADRPP0346G /APPELLANT /RESPONDENT & ./ ITA NOS.1690 TO 1695/CHD/2017 / ASSESSMENT YEARS : 2008-09 TO 2012-13 & 2014-15 THE A.C.I.T. CIRCLE-2(1), CHANDIGARH. SH.SACHIT PASSI, # 18, SECTOR-5, CHANDIGARH. ./PAN NO: ABOPP4217B /APPELLANT /RESPONDENT /ASSESSEE BY: SHRI ATUL MANDHAR, ADV. ! / REVENUE BY: SMT.CHANDERKANTA, SR.DR ' # $ /DATE OF HEARING : 22.08.2019 %&'( $ /DATE OF PRONOUNCEMENT: 27.08.2019 ITA NO.1684 TO 1690/CHD/2017 A.YS. 2008-09 TO 20 13-14 & 2014-15 2 /ORDER PER BENCH : ALL THE ABOVE APPEALS RELATING TO TWO DIFFERENT ASSESSEES HAVE BEEN PREFERRED BY THE REVENUE AGAINS T THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I, CHANDIGARH [(IN SHORT CIT(A)] ALL DA TED 12.10.2017 RELATING TO ASSESSMENT YEARS 2008-09 TO 2013-14 RESPECTIVELY, PASSED U/S 250(6) OF THE INCOME TAX A CT, 1961 (HEREINAFTER REFERRED TO AS ACT). 2. THE APPEALS WERE EARLIER HEARD ON 18.7.2019 BUT BEFORE THE ORDER COULD BE PRONOUNCED THE CBDT ISSUED A CIR CULAR ENHANCING THE MONETARY LIMIT FOR FILING APPEALS BY THE DEPARTMENT TO THE I.T.A.T. FROM RS.20 LACS TO RS.50 LACS VIDE ITS CIRCULAR NO.17/2019 DATED 8.8.2019. IN VIEW OF THE SAME AND SINCE THE TAX EFFECT INVOLVED IN THESE APPEALS APPEARED TO BE LESS THAN RS.50 LACS, THE APPEALS WERE FIXED FOR HEARING AGAIN FOR SEEKING CLARIFICATION FROM BOTH T HE PARTIES ON 22.8.2019. ON THE SAID DATE THE LD.COUNSEL FOR T HE ASSESSEE SUBMITTED A TAX CALCULATION WITH RESPECT T O ALL THE APPEALS REFLECTING THE TAX EFFECT INVOLVED IN ALL T HE APPEALS BEING LESS THAN RS.50 LACS. ITA NO.1684 TO 1690/CHD/2017 A.YS. 2008-09 TO 20 13-14 & 2014-15 3 3. THE LD. DR FAIRLY CONCEDED TO THIS FACT AND ALSO AGREED THAT THE APPEALS WERE LIABLE TO BE WITHDRAWN ON ACC OUNT OF THE RECENT CBDT CIRCULAR. 4. IN VIEW OF THE ABOVE, SINCE THE PRESENT APPEALS ADMITTEDLY STAND COVERED WITHIN THE MONETARY LIMIT SPECIFIED BY THE CBDT FOR FILING THE APPEALS BY THE DEPARTMEN T TO THE I.T.A.T., THE SAME STANDS DISMISSED AS WITHDRAWN. M OREOVER, WE HAVE CONSIDERED THE IMPACT OF THE IMPUGNED CBDT CIRCULAR IN PENDING APPEALS IN THE CASE OF ACIT VS. M/S ALCHEMIST LTD. IN ITA NOS. 1142 & 1143/CHD/2012 DAT ED 26.8.2019 WHEREIN WE HAVE HELD THAT THE SAID CIRCUL AR APPLIES TO THE PENDING APPEALS ALSO. OUR DISCUSSION ON THIS ASPECT AT PARAS 4 AND 5 OF OUR ORDER AS UNDER: 4. WE HAVE CONSIDERED THE CONTENTIONS OF THE PARTIES BEFORE US AND HAVE ALSO GONE THROUGH THE CBDT CIRCULAR NO.17/2019 DATED 8/8/19, AND HAVE NOTED THE ENHANCEMENT IN MONETARY LIMITS FOR FILING APPEAL BY THE DEPARTMENT TO THE ITAT TO RS.50 LACS FROM THE EARLIER LIMIT OF RS. 20 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 LEAVING ALL OTHER PARAS INTACT. PARA 13 OF THE EARLIER CIRCULAR DEALT WITH APPLICABILITY OF THE CIRCULAR RETROSPECTIVELY TO PENDING 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/ REFERE NCES. ITA NO.1684 TO 1690/CHD/2017 A.YS. 2008-09 TO 20 13-14 & 2014-15 4 PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 5. SINCE THIS PARA HAS NOT BEEN MODIFIED BY THE RECENT CIRCULAR, THE ENHANCED MONETARY LIMITS SPECIFIED IN THE RECENT CIRCULAR WILL APPLY TO THE PENDING APPEALS ALSO. IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 (SUPRA) READ ALONGWITH CIRCULAR NO.3/2018,THE PRESENT APPEALS OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. IN VIEW OF CBDT CIRCULAR NO.17/2019 DATED 8.8.20 19 READ ALNGWITH CIRCULAR NO.3/2018, THE PRESENT APPEA LS OF THE REVENUE ARE 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, ALL THE DEPARTMENTAL APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- !'# ' ( ) * + (DIVA SINGH) (ANNAPURNA GUPTA) $ !% /JUDICIAL MEMBER ,- !% /ACCOUNTANT MEMBER '' /DATED: 27 TH AUGUST, 2019 * * ITA NO.1684 TO 1690/CHD/2017 A.YS. 2008-09 TO 20 13-14 & 2014-15 5 &) *+,+ / 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