DCIT, New Delhi V. M/s. On Dot Couriers and Cargo Ltd., New Delhi

ITA 1752/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6253 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 29-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 25-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA SENIOR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1752 1752 1752 1752 /DEL/20 /DEL/20 /DEL/20 /DEL/20 14 1414 14 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 20 2020 20 10 1010 10 - -- - 11 1111 11 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -13(1), 13(1), 13(1), 13(1), NEW NEW NEW NEW DELHI. DELHI. DELHI. DELHI. VS. VS. VS. VS. M/S ON DOT COURIERS AND CARGO M/S ON DOT COURIERS AND CARGO M/S ON DOT COURIERS AND CARGO M/S ON DOT COURIERS AND CARGO LIMITED, LIMITED, LIMITED, LIMITED, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 015. 110 015. 110 015. 110 015. PAN : AAACC3526C PAN : AAACC3526C PAN : AAACC3526C PAN : AAACC3526C. .. . (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P. DAM KANUNJNA, SENIOR DR. RESPONDENT BY : NONE. DATE OF HEARING : 2 22 29 99 9.03.2016 .03.2016 .03.2016 .03.2016 DATE OF PRONOUNCEMENT : 30.03.2016 30.03.2016 30.03.2016 30.03.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVI, N EW DELHI DATED 17 TH DECEMBER, 2013. 2. AT THE TIME OF HEARING BEFORE US, NOBODY APPEARE D ON BEHALF OF THE ASSESSEE-RESPONDENT. THIS APPEAL OF THE REVENU E IS, THEREFORE, BEING DISPOSED OF EX PARTE QUA THE ASSESSEE-RESPONDENT ON MERITS AFTER HEARING THE ARGUMENTS OF LEARNED DR. 3. IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN T HIS APPEAL BY THE REVENUE IS BELOW `10 LAKHS. THE CBDT IN ITS CIRCUL AR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF ITA-1752/DEL/2014 2 THE DEPARTMENTAL APPEALS TO THE ITAT AT `10 LAKHS W HICH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS AS UN DER:- 3. HENCEFORTH, APPEAL/SLPS SHALL NOT BE FILED IN C ASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER:- S.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN 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 MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETARY L IMITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFEREN CE, WE REPRODUCE PARAGRAPH 10 BELOW:- 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIF IED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED . APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED B Y THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY APPLICABLE TO THE APPEAL UNDER CONSIDERATION BEFORE US. 6. LEARNED SENIOR DR WHO APPEARED AT THE TIME OF HE ARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FOR THE R EPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADMI NISTRATIVE CIT FOR WITHDRAWING THIS APPEAL BECAUSE THE APPEAL WAS FILE D WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED DR FURTHER POINTED OUT THAT IN ITA-1752/DEL/2014 3 PARAGRAPH 7 OF THE SAID CIRCULAR, IT HAS BEEN CLARI FIED BY THE CBDT THAT WITHDRAWAL OF THIS APPEAL BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBS EQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEAL AN D, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISES BEFORE THE ITA T WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRESCRIBED IN THIS CIRCUL AR, THE SAME SHOULD BE DECIDED ON MERITS. 7. AFTER CONSIDERING THE SUBMISSIONS OF LEARNED DR, WE ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING T HE APPEAL AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE, APPA RENTLY, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS BE LOW `10 LAKHS. HOWEVER, WE ADD HERE THAT IF ON RECEIPT OF ORDER TH E ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE `10 LAKHS OR, IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE, HE WILL BE AT LIBERTY T O FILE THE MISCELLANEOUS APPLICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT B E AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS APPEA L BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THA N `10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEAL IN THE LIGHT OF THE CIRCULAR NO.21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 30.03.2016 . SD/- SD/- ( (( ( BEENA A. PILLAI BEENA A. PILLAI BEENA A. PILLAI BEENA A. PILLAI ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-1752/DEL/2014 4 COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 2. RESPONDENT : M/S ON DOT COURIERS AND CARGO LIMIT ED, M/S ON DOT COURIERS AND CARGO LIMITED, M/S ON DOT COURIERS AND CARGO LIMITED, M/S ON DOT COURIERS AND CARGO LIMITED, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, 8/42, KIRTI NAGAR, INDUSTRIAL AREA, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 015. 110 015. 110 015. 110 015. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR