DCIT, CIRCLE- 62(1), NEW DELHI V. ASHOK J THAPAR HUF, NEW DELHI

ITA 177/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8760 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 05-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGDISH SINGH DAHIA
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DLEHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.177/DEL/2018 ASSESSMENT YEAR: 2011-12 DCIT, CIRCLE 62(1), VS. ASHOK THAPAR HUF, NEW DELHI. C-7, ANSAL VILLA SATBARI MEHRAULI, NEW DELHI., PAN : AADHA7372L (APPELLANT) (RESPONDENT) APPELLANT BY : SH. JAGDISH SINGH DAHIA, SR. DR RESPONDENT BY: NONE DATE OF HEARING: 29/07/2021 DATE OF ORDER : 29/07/2021 ORDER PER K. NARASIMHA CHARY, J.M. THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2011-12 IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF I NCOME-TAX (APPEALS)- 20, NEW DELHI DATED 23.10.2017. 2. AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST 2019 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY APPEA L BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. THERE FORE, HE PLEADED THAT THE 2 APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUC TION OF THE CBDT. NONE IS PRESENT ON BEHALF OF THE ASSESSEE. 3. WE HAVE HEARD THE CONTENTION AND PERUSED THE MAT ERIAL ON RECORD. WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17/2019 DAT ED 08 TH AUGUST 2019 HAS ENHANCED THE MONETARY LIMIT FOR FILING THE APPE AL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER :- 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FI LING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMEN DMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDING LY, THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCUL AR SHALL READ AS FOLLOWS: 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 WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED, PA RA 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 T HE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE. THE DISPUTED ISSUES ARISE IN MORE 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 SPEC IFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN AS SESSMENT YEAR OR Y EARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE 3 OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUT HORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMM ON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHA LL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN W HICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MOR E THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM T HE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CONCERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TAX ACT, 1961. 4. WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPE AL OF THE REVENUE IS BELOW RS. 50 LAKHS. THERE IS NO DISPUTE THAT THE B OARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE 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 A MOUNT OF RS. 50 LAKHS. THE ISSUE OF APPLICABILITY OF THE ABOVE CIRCULAR TO PEN DING APPEALS HAS BEEN DECIDED BY THE COORDINATE BENCH IN DINESH MADHAVLAL PATEL [TS-469-ITAT- 2019(AHD)] 2019-TIOL-1556-ITAT-AHM DATED 14 TH AUGUST, 2019 . 5. IN VIEW OF THE ABOVE, CIRCULAR NO. 17/2019 DATED 08/08/2019 WILL APPLY TO ALL PENDING APPEALS. THEREFORE, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFE CT IS LESS THAN RS. 50 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 4 6. WE MAY, HOWEVER, ADD THAT CERTAIN TIMES INSTANCE S STATED IN PARA NO. 10 OF THE CBDT CIRCULAR NO. 3/2018 DATED 11.07. 2018 ARE NOT DISCERNIBLE FROM THE ASSESSMENT AND APPELLATE ORDER S. WE, THEREFORE, GIVE LIBERTY TO REVENUE IN SUCH CASES WHERE THE INSTANCE S STATED IN PARA NO 10 OF THE CIRCULAR EXIST, TO FILE MISCELLANEOUS APPLIC ATION WITH EVIDENCES. 7. IN THE RESULT, APPEAL FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS THE 29 TH DAY OF JULY, 2021. SD/- SD/- (N.K. BILLAIYA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 29/07/2021 AKS