DCIT, New Delhi V. M/s. DCM Shriram Industries Ltd., New Delhi

ITA 275/DEL/2015

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 5890 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 13-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 274

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: E NEW DELHI BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER [THROUGH VIDEO CONFERENCING] ITA NOS. 274 & 275/DEL./2015 ASSESSMENT YEARS: 2004-05 & 2005-06 DCIT, CIRCLE-7(1), NEW DELHI VS. M/S. DCM SHRIRAM INDUSTRIES LTD., 6 TH FLOOR, KANCHANJUNGA BLDG., 18, BARAKHAMBA ROAD, NEW DELHI PAN :AAACD0204C (APPELLANT) (RESPONDENT) ORDER PER BENCH: THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST COMMON ORDER DATED 22.09.2014 PASSED BY COMMISSIONE R OF INCOME-TAX (APPEALS)-XXXIII, NEW DELHI, FOR ASSESSM ENT YEARS 2004-05 AND 2005-06. 2. AT THE OUTSET, THE LEARNED SR. DR BROUGHT TO OUR A TTENTION THAT CBDT, VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST, 2019, HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY A PPEAL BEFORE APPELLANT BY MS. SHIVANI BANSAL, SR.DR RESPONDENT BY SHRI R.K. KAPOOR, CA DATE OF HEARING 01.02.2021 DATE OF PRONOUNCEMENT 01.02.2021 2 ITA NO. 274/DEL./2015 & 275/DEL./2015 THE TRIBUNAL, IF THE TAX EFFECT IS LESS THAN RS.50 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDE D AS PER THE INSTRUCTION OF THE CBDT. 3. WE HAVE HEARD BOTH THE PARTIES THROUGH VIDEO CONFER ENCING AND PERUSED THE RELEVANT RECORD. WE FIND THAT THE C BDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019, HAS ENHANCED THE MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTM ENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS.20 LAKHS TO R S.50 LAKHS. THE SAID CIRCULAR ALSO MAKES REFERENCE TO THE EARLI ER CIRCULAR NO. 3/2018, DATED 11.7.2018 AND, ESPECIALLY STATES THAT AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE APP EALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE EARLIER CIRC ULAR BUT ONLY AMENDS THE MONETARY LIMITS AS WELL AS GIVES CLARIFI CATION WITH REGARD TO PARAGRAPH 5 OF THE EARLIER CIRCULAR. THIS , INTER ALIA, MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN TH E EARLIER CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT, IT WILL APPLY TO ALL THE PENDING A PPEALS. 4. FURTHER, CBDT VIDE CIRCULAR DATED 20 TH AUGUST, 2019 (F. NO. 279/19-93/2018-ITJ), HAS CLARIFIED THAT IT WILL APP LY TO ALL PENDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIR CULAR, THE APPEALS OF THE REVENUE ARE DISMISSED AS NON-MAINTAI NABLE AS THE TAX EFFECT INVOLVED IN THE APPEALS ARE BELOW RS.50 LAKHS. HOWEVER, IT IS MADE CLEAR THAT THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THE ORDE R, IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMI T OF RS.50,00,000/- OR ANY OF THE CONDITIONS ETC., AS AV AILABLE IN THE 3 ITA NO. 274/DEL./2015 & 275/DEL./2015 AMENDMENT CARRIED OUT IN PARA 10 OF CIRCULAR NO. 3/ 2018, DATED 20.08.2018, IS MADE OUT. 5. IN THE RESULT, BOTH THE APPEALS OF REVENUE ARE DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST FEBRUARY, 2021 SD/- SD/- (MAHAVIR PRASAD) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 ST FEBRUARY, 2021. RK/- (D.T.D.S.) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI