ACIT, New Delhi V. M/s. Comfort Net Traders(I) Pvt. Ltd., New Delhi

ITA 2123/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2011 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 07-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Tax effect
• Section: 201; 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DLEHI BEFORE SHRI G.S. PANNU, VICE PRESIDENT AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.2123/DEL/2017 ASSESSMENT YEAR: 2011-12 ACIT, CENTRAL CIRCLE-17, ROOM NO.103, FIRST FLOOR, HALL NO.1 ARA CENTRE, E-2, JHANDEWALAN, NEW DELHI. VS. M/S. COMFORT NET TRADERS (I) PVT. LTD., SHOP NO.26, NATHU SINGH MARKET, MASOOD PUR VASANT KUNJ, NEW DELHI- 110057. PAN:AAACC 3286D (APPLICANT) (R ESPONDENT) APPELLANT BY: MS. NIDHI SRIVASTAVA, CIT-DR RESPONDENT BY: SH. DEE PESH GARG, ADV. ITA NO.7437 /DEL/2017 ASSESSMENT YE AR: 2009-10 INCOME TAX OFFICER WARD-28(1), NEW DELHI. VS. M/S EXOTIQUE EXPORTS Z-45, OKHLA INDUSTRIAL AREA, PHASE-II, NEW DELHI-110020 PAN:AAAFE 1843K (APPLICANT) (RESPONDENT) APPELLANT BY: SH . JAGDISH SINGH SR. DR RESPONDENT BY: NONE 2 ITA NOS.2123 & 743 7/DEL/2017 ASST. YEARS: 201 1-12 & 2009-10 DATE OF HEARING: 16/3/20 20 DATE OF ORDER : 20/3/2020 ORDER PER K. NARASIMHA CHARY, J.M. BOTH THE APPEALS FILED BY DEPARTMENT AGAINST THE DI FFERENT ORDERS OF THE LD. CIT(A)-27 & CIT(A)-10, NEW DELHI DATED 31.01.2017 & 21.04.2016 FOR THE ASSESSMENT YEARS: 2011-12 & 2 009-10. 2. AT THE OUTSET OF THE HEARING ITSELF, IT IS BRO UGHT 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 LAKH S. THEREFORE, IT IS PLEADED THAT THE APPEALS OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. 3. WE HAVE HEARD THE CONTENTION AND PERUSED THE MAT ERIAL ON RECORD. WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17 /2019 DATED 08 TH AUGUST 2019 HAS ENHANCED THE MONETARY LIMIT FOR FIL ING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL , HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT P ARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER :- 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMI TS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED F URTHER 3 ITA NOS.2123 & 743 7/DEL/2017 ASST. YEARS: 201 1-12 & 2009-10 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 YE AR VIS- A-VIS WHERE 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 EFFECT 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 DISPU TED 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 SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR Y EARS IN WHICH TH E TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDE R OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMEN T YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN 4 ITA NOS.2123 & 743 7/DEL/2017 ASST. YEARS: 201 1-12 & 2009-10 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 CONCERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TA X 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 TH E BOARDS 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 T HE AMOUNT OF RS. 50 LAKHS. THE ISSUE OF APPLICABILITY OF THE ABOVE CIR CULAR TO PENDING APPEALS HAS BEEN DECIDED BY THE COORDINATE BENCH IN DINESH MADHAVLAL PATEL [TS-469-ITAT-2019(AHD)]2019-TIOL-15 56-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 THE PR ECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INST ANT CASE AS THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEALS FILED BY THE REVENUE ARE NOT MAINTAINABLE. 5 ITA NOS.2123 & 743 7/DEL/2017 ASST. YEARS: 201 1-12 & 2009-10 6. WE MAY, HOWEVER, ADD THAT CERTAIN TIMES INSTANCE S STATED IN PARA NO. 10 OF THE CBDT CIRCULAR NO. 3/2018 DATED 1 1.07.2018 ARE NOT DISCERNIBLE FROM THE ASSESSMENT AND APPELLATE ORDER S. WE, THEREFORE, GIVE LIBERTY TO REVENUE IN SUCH CASES WHERE THE INS TANCES STATED IN PARA NO 10 OF THE CIRCULAR EXISIT,TO FILE MISCELLAN EOUS APPLICATION WITH EVIDENCES. 7. IN THE RESULT, BOTH APPEALS FILED BY THE DEPARTM ENT ARE DISMISSED. PRONOUNCED IN OPEN COURT ON THIS THE 20 TH MARCH, 2020. SD/- SD/- (G.S. PANNU) (K. NARASIMHA CHARY) VICE PRESIDENT JUDICIAL MEMBER DATED: 20 /3/2020 VJ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI