ITO WARD - 13(4), New Delhi V. Jwala Associates (P) Ltd, New Delhi

ITA 182/DEL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8612 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 09-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARAS KUMAR
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIB UNAL DELHI BENCH FRIDAY NEW DELHI BEFORE SHRI G.S. PANNU, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 182/DEL/2020 ASSESSMENT YEAR : 2011-12 ITO, WARD 13(4), NEW DELHI. JWALA ASSOCIATES (P) LTD., C/O SANDEEP SAPRA, C-763, NEW FRIENDS COLONY, NEW DELHI-110025 (PAN: AABCJ8284F) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI SARAS KUMAR, SR. DR RESPONDENT BY: SHRI SANDEEP SAPRA, ADV. ORDER PER G.S. PANNU, VICE PRESIDENT THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-5, NEW DEL HI DATED 21.10.2019 PERTAINING TO THE ASSESSMENT YEAR 2011-12. 2. AT THE OUTSET, THE LD. AR BROUGHT TO OUR ATTENTION THA T CBDT VIDE CIRCULAR NO. 17/2019 DATED 08TH AUGUST 2019 HAS DECIDE D THAT THE REVENUE WOULD NOT PREFER ANY APPEAL BEFORE THE TRIBUN AL IF THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. THEREFORE, HE PLEAD ED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. THE LD. AR SUBMITTED THAT THE TAX EFFECT IS ONLY RS. 6,31,596/- W HICH IS BELOW THE REVISED LIMIT OF RS. 50 LAKH. ITA NO. 182/D/2020 ASSESSMENT YEAR 2011-12 2 3. NOW THERE IS A LATEST CBDT CIRCULAR NO. 17/2019 D ATED 08.08.2019, WHEREIN THE CBDT HAS FURTHER ENHANCED THE MONETARY LIMIT FOR FILING OF APPEAL BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS. 20 LACS TO RS. 50 LACS. T HE SAID CIRCULAR ALSO MAKE REFERENCE TO THE EARLIER CIRCULAR NO. 3/201 8 DATED 11.7.2018 AND SPECIALLY STATES THAT AS A STEP TOWARDS FUR THER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENH ANCE THE MONETARY LIMIT FOR FILING OF THE APPEALS. THIS CIRCULA R IS NOT IN SUPERSESSION OF THE EARLIER CIRCULAR BUT ONLY AMENDS THE MONETARY LIMITS AS WELL AS GIVES CLARIFICATION WITH REGARD TO P ARAGRAPH 5 OF THE EARLIER CIRCULAR. THIS INTER ALIA MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN THE EARLIER CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT IS, IT WILL APPLY TO ALL THE PENDING APPEALS. FOR THE SAKE OF READY REFERENCE, THE LATEST CIRCULAR IS REPRODUCED HEREUNDER : F. NO.279/MISC. 142/2007-ITJ(PT.) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT O F REVENUE CENTRAL BOARD DIRECT TAXES JUDICIAL SECTION NEW DELHI. 8TH AUGUST 2019 SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS F OR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPE LLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGU ST. 2018 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOM E TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLA TE TRIBUNAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT HAVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN ITA NO. 182/D/2020 ASSESSMENT YEAR 2011-12 3 RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PA RA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED F URTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTION ED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS F OLLOWS: 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 WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 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 THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN M ORE 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 S PECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF A N ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHE R, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDE R/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CON CERNED. ITA NO. 182/D/2020 ASSESSMENT YEAR 2011-12 4 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TAX ACT, 1961. 4. FURTHER, CBDT VIDE CIRCULAR DATED 20 TH AUGUST, 2019 F.NO.2 79/19- 93/2018-ITJ HAS CLARIFIED THAT IT WILL APPLY TO ALL PE NDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIRCULAR, THE APPEAL OF THE REVENUE IS DISMISSED AS NON-MAINTAINABLE BECAUSE TAX EFFECT IS B ELOW RS. 50 LAKHS. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT IN THE PRESENCE O F THE PARTIES THROUGH VIDEO CONFERENCING. SD/- SD/- (SUDHANSHU SRIVASTAVA) ( G.S. PANNU) JUDICIAL MEMBER VICE PRESIDENT D ATED: 17TH JULY, 2020 GS COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER ASSISTANT REGISTRAR