ITO (TDS), Moradabad V. Life Insurance Corporation Ltd., Uttar Pradesh

ITA 1933/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7360 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 15-06-2016
• Assessment Year: misc
• Appeal Filed On: 02-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH KUMAR SHA RMA SRDR
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER, AN D SHRI L.P. SAHU, ACCOUNTANT MEMBER , ITA NO. 1933/DEL /2014 [A.Y : 2008-09] THE I.T.O [TDS] VS. M/S LIFE INSURA NCE CORPN. LTD MORADABAD JWALAMUKHI COLONY NEW DELHI SHAKTI NAGAR, SONEBHADRA PAN : LKNLO 5237 B [APPELLANT] [RESPONDENT] DATE OF HEARING : 15.06.2016 DATE OF PRONOUNCEMENT: .06.2016 APPELLANT BY : SHRI YOGESH KUMAR SHA RMA, SR-DR RESPONDENT BY : NONE ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE CIT(A), BAREILLY, DATED 17/01/2014 FOR AY 2008-09. 2. THIS APPEAL HAS BEEN FIXED FOR HEARING IN VIEW O F THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVI SING THE MONETARY LIMIT OF RS.10.00 LAKHS FOR NOT FILING THE APPEAL B EFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME-TAX ACT. 2 ITA NO. 1933/ DEL/2014 2 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATE D 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE F ILED BEFORE THE ITAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN R S.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THI S INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKHS MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT-DR APPEARING ON BEHALF OF THE RE VENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WIT HDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FUR THER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT B E CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULA R AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER, THE APPEAL WAS HEARD EX PARTE AS THE CBDT CIRCULAR IS BENEFICIAL TO THEM. 6. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THIS APPEAL BY TH E REVENUE IS BELOW RS. 10.00 LAKHS AND, THEREFORE, WE DEEM IT PROPER TO DI SMISS THE APPEAL PARTICULARLY BECAUSE THE PENDING APPEAL IS COVERED BY CIRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY TH AT IF ON RECEIPT OF THIS 3 ITA NO. 1933/ DEL/2014 3 ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFF ECT IS ABOVE RS.10 LAKHS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE WILL BE AT LIBERTY T O FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORDER WHICH THE T RIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE F ORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WI LL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE, INVOLVED IN THIS APPEAL, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THA N RS.10 LAKHS. 7. WE ARE ALSO INCLINED TO AGREE WITH THE CONTENTIO N OF THE LD. DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEP TANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WI LL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOL VED IN THIS APPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOS E YEARS IS MORE THAN RS. 10 LAKHS. WITH THESE DIRECTIONS WE DEEM IT PRO PER TO DISMISS THE APPEALS IN THE LIGHT OF THE CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER 2015. ACCORDINGLY, WITHOUT GOING INTO ME RITS OF THE CASE, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. 4 ITA NO. 1933/ DEL/2014 4 8. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON .06 .2016. (L.P. SAHU) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: JUNE, 2016 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI