Income Tax Office, Ward -2(1), Nashik V. M/s. EMS Engineering Works, Nashik

ITA 179/PUN/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2145 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 31-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Keywords: Retrospective amendment; Tax effect
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI P.M. JAGTAP , V ICE P RESIDENT(KZ) . / ITA NO S . 178 & 179 /PUN/20 20 / ASSESSMENT YEAR S : 20 09 - 1 0 & 2011 - 12 THE INCOME TAX OFFICER, WARD 2(1), NASHIK ....... / APPELLANT / V/S. M/S. EMS ENGINEERING WORKS, B - 9, E - 94, MECD PREIT CO - OP. SOCIETY, MIDC, AMBAD, NASHIK 422010 PAN: AOEPS7989G / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI S.P. WALIMBE / DATE OF HEARING : 0 3 .12.2020 / DATE OF PRONOUNCEMENT : 03 .12.2020 / ORDER PER P.M. JAGTAP, VP : BOTH THE APP EAL S FILED BY THE REVENUE ARE DIRECTED AGAINST SEPARATE ORDER S OF LD.CIT(A) - 2 , NASHIK , BOTH DATED 2 0 . 1 1 .201 9 . 2. THE LD. DR FAIRLY CONCEDED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEALS FILED BY THE REVENUE IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT. ITA NO S . 178 & 179 /PUN/ 20 20 2 3. RECENTLY, THE CBDT HAS ISSUED CIRCULAR NO.17/2019 DATED 08 - 08 - 2019 REVISING UPWARD THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT IN INCOME - TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER CIRCULAR NO.03/2018 DATED 11 - 07 - 2018 FIXED MONETARY LIMIT FOR FILING OF APPEALS BY THE REVENUE BEFORE THE TRIBUNAL AT RS.20.00 LAKH. SUCH LIMIT HAS NOW BEEN ENHANCED IN THE RECENT CIRCULAR DATED 08 - 08 - 2019 TO RS.50.00 LAKH. SINCE TAX EFFECT IN THE APPEAL UNDER CONSIDERATION IS LESS THA N THE REVISED MONETARY LIMIT OF RS.50.00 LAKH, WE ARE NOT INCLINED TO ENTERTAIN SUCH APPEAL. 4 . CERTAIN CONCERNS WERE EXPRESSED ABOUT THE RETROSPECTIVE OR PROSPECTIVE OPERATION OF THE CIRCULAR DATED 08 - 08 - 2019. IN THIS REGARD, IT IS RELEVANT TO NOTE THAT THE AHMEDABAD BENCH OF THE TRIBUNAL VIDE ITS ORDER DATED 14 - 08 - 2019 IN A BUNCH OF APPEALS LED BY ITO VS. DINESH MADHAVLAL PATEL (ITA NO.1398/AHD/2004) HAS LAID DOWN THAT THE CBDT CIRCULAR NO.17/2019 HAS RETROSPECTIVE EFFECT AND APPLIES TO ALL THE P ENDING APPEALS. 5 . AT THIS JUNCTURE, IT IS PERTINENT TO NOTE THAT THE CBDT VIDE F.NO.279/MISC/M - 13/2018 - ITJ DATED 20 - 08 - 2019 HAS CLARIFIED THAT THE REVISED MONETARY LIMITS SO MENTIONED IN CIRCULAR NO.17/2019 ARE APPLICABLE TO ALL PENDING APPEALS. NOT ONLY THAT, IT HAS FURTHER BEEN DIRECTED TO THE COMPETENT AUTHORITIES TO WITHDRAW ALL SUCH APPEALS ON OR BEFORE 31 - 10 - 2019. 6 . IN VIEW OF THE FOREGOING DISCUSSION AND FOLLOWING THE PRECEDENT, WE DISMISS THE APPEAL FILED BY THE REVENUE. ITA NO S . 178 & 179 /PUN/ 20 20 3 7 . IT IS H OWEVER CLARIFIED THAT IF SUBSEQUENTLY IT IS FOUND BY THE CONCERNED AO THAT THE TAX EFFECT IN THE APPEAL IS MORE THAN THE PRESCRIBED MONETARY LIMIT OF RS.50.00 LAKH OR THE CASE IS COVERED BY ANY EXCEPTION, IT WILL BE OPEN TO THE REVENUE TO MOVE THE TRIBUNAL FOR TAKING NECESSARY ACTION. 8 . IN THE RESULT, BOTH THE APPEAL S OF REVENUE ARE DISMISSED . ORDER PRONOUNCED IN THE O PEN COURT ON 3 RD DECE MBER , 2020 SD/ - ( P.M. JAGTAP ) VICE PRESIDENT / PUNE; / DATED : 3 RD DECEMBER, 2020. GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT (A) - 2 , NASHIK 4 . 5. THE PR. CIT - 2 , NASHIK , , / DR, ITAT, SMC PUNE 6 . / GUARD FILE / BY ORDER, / / TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE