ITO, Gurgaon V. Shri Kulpreet Sunderlal, Gurgaon

ITA 2682/DEL/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4177 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 11-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY TRIPATHI
• Assessee Lawyers: P K GAUR
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES G: DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER ITA.NO.2682/DEL./2016 ASSESSMENT YEAR 2012-13 ITO WARD 2(3) GURGAON VS. KULPREET SUNDERLAL S/P SHRI J.P. SUNDERLAL, H.NO. 109, ESPACE, NIRVANA COUNTRY, SECTOR-50, GURGAON. AIGPS4459R (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI SANJAY TRIPATHI, SR. DR FOR ASSESSEE : SHRI P.K. GAUR, CA DATE OF HEARING : 31 .10.2018 DATE OF PRONOUNCEMENT : 31 .10.2018 ORDER PER DR. MITHA LAL MEENA, A.M. THE REVENUE HAS CHALLENGED THE ORDER DATED 31.03.2016 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-2, GURGAON FOR A.Y. 2012-13. 2 ITA.NO.2682/DEL./2016 2. IT WAS SEEN THAT TAX EFFECT OF THE APPEAL FILED BY THE REVENUE IS BELOW RS.20,00,000/-. THEREFORE, THE LD. DR WAS ASKED AS TO WHY THE APPEAL FILED BY THE REVENUE SHO ULD NOT BE DISMISSED DUE TO LOW TAX EFFECT IN THE LIGHT OF THE RECENT CBDT CIRCULAR NO.03/2018 DATED 11 TH JULY,2018. 3. WE HAVE HEARD THE PARTIES. IT IS FOUND THAT PURS UANT TO THE MANDATE OF SECTION 268A, THE CBDT HAS ISSUED CIRCULAR NO. 03 OF 2018, DATED 11TH JULY, 2018 WITH RETROSPECTIVE EFFECT, REVISING THE MONETARY LIMIT T O RS.20,00,000/- FOR NOT FILING APPEALS BEFORE THE TR IBUNAL. IT IS FURTHER FOUND THAT AS THE TAX EFFECT INVOLVED IN TH E INSTANT APPEAL IS LESS THAN RS.20,00,000/-, THE EXT ANT APPEAL IS NOT MAINTAINABLE. THE LD. DR, ALTHOUGH SUPPORTED THE ORDERS OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THE FACT THAT TAX EFFECT INVOL VED IN THIS APPEAL IS LESS THAN RS.20,00,000/-. 4. GOING BY THE PRESCRIPTION OF THE ABOVE STATED CIRCULAR, IT IS OBSERVED THAT THE INSTRUCTION IS AP PLICABLE TO 3 ITA.NO.2682/DEL./2016 THE PENDING APPEALS ALSO WITH RETROSPECTIVE EFFECT AND THERE IS A CLEAR-CUT DIRECTION TO THE DEPARTMENT TO WITHDRAW OR NOT PRESS SUCH APPEALS FILED BEFORE THE ITAT, WHEREIN T AX EFFECT IS LESS THAN RS.20,00,000/-. WE ARE, THEREFORE, OF THE VIEW THAT THE REVENUE SHOULD HAVE EITHER NOT FILED THE INSTAN T APPEAL BEFORE THE TRIBUNAL OR WITHDRAWN THE SAME AS THE TA X EFFECT IN THIS APPEAL IS ADMITTEDLY LESS THAN THE PRESCRIBED LIMIT, I.E., RS. 20,00,000/- FOR NOT FILING THE APPEAL. ACCORDIN GLY, WE DISMISSED THE INSTANT APPEAL WITHOUT GOING INTO MER ITS OF THE CASES. 5. THE LD. DR HAS BROUGHT TO OUR NOTICE A LETTE R DATED 20.08.2018 OF THE DIRECTOR (ITJ), CBDT, NEW DELHI A DDRESSED TO ALL THE PRINCIPAL CCITS IN WHICH PARA NO. 10 OF THE EARLIER CIRCULAR DATED 11.7.2018, ENUMERATING CERTAIN INSTA NCES IN WHICH THE APPEALS SHOULD BE CONTESTED NOTWITHSTANDI NG THE LOW TAX EFFECT, HAS BEEN REVISED. HE, HOWEVER, COU LD NOT PLACE ANY MATERIAL ON RECORD TO DEMONSTRATE THAT THE ABOV E APPEAL IS COVERED BY THE AMENDED PARA OF THE CIRCULAR. UNDER THESE 4 ITA.NO.2682/DEL./2016 CIRCUMSTANCES, WE DISMISSED THE APPEAL FILED BY TH E REVENUE AND GIVE LIBERTY TO THE DEPARTMENT TO FILE MISCELLA NEOUS APPLICATIONS, IF IT IS FOUND THAT EITHER THE TAX EF FECT IS MORE THAN THE PRESCRIBED LIMIT OF RS.20,00,000/- OR THE APPEAL GETS COVERED IN THE REVISED PARA 10 OF THE LETTER DATED 20.08.2018. ACCORDINGLY, THE APPEAL OF THE REVENUE STANDS DISMI SSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31.10.2018 SD/- SD/- (H.S. SIDHU) (DR. MI THA LAL MEENA) JUDICIAL MEMBER ACCOUNTA NT MEMBER DATED 31.10.2018 *KAVITA ARORA COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI. 5 ITA.NO.2682/DEL./2016 DATE OF DICTATION 31.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 31.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 31.10.18 DATE ON WHICH THE FAIR OR DER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 31.10.18 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 31.10.18 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 01.11.18 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 01.11.18 DATE ON WHICH THE F ILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER