ACIT, Faridabad V. M/s Nuchem Ltd, Faridabad

ITA 2784/DEL/2010

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7744 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 01-06-2016
• Assessment Year: 1997-1998
• Appeal Filed On: 04-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NANDITA KANCHAN
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI G.D. AGR A WAL , VICE PRESIDENT , AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO. 3986 /DEL/20 1 3 ASSESSMENT YEAR : 200 4 - 0 5 ITA NO. 3988 /DEL/201 3 ASSESSMENT YEAR: 200 7 - 0 8 ITA NO. 3989 /DEL/201 3 ASSESSMENT YEAR: 200 8 - 0 9 THE D .C. I.T . VS. PAGE POINT SERVICE (I) PVT. LTD CENTRAL CIRCLE - 1 1501, 15 TH FLOOR, HE MKUNTH TOWER NEW DELHI 89, NEHRU PLACE, NEW DELHI PAN : A A BCP 9794 Q APPELLANT BY : SMT. NANDITA KANCHAN , CIT - DR RESPONDENT BY : NONE ITA NO. 2784 /DEL/201 0 ASSESSMENT YEAR: 1997 - 98 THE A .C.I.T. VS. M/S NUCHEM LIMITED CENTRAL CIRCLE - 1 20/6, MATHURA ROAD FARIDABAD FARIDABAD PAN : A A CFN 4428 P APPELLANT BY : SHRI R.S. NEGI, SR. DR RESPONDENT BY : NONE ITA NO. 4582 /DEL/201 1 ASSESSMENT YEAR: 200 8 - 0 9 THE I.T. O VS. P REM SONS WARD 33(2) 2682/2, AJMAL KHAN ROAD NEW DELHI KAROL BAGH , NEW DELHI PAN : A A AFP 3806 B 2 2 APPELLANT BY : SHRI R.S. NEGI, SR. DR RESPONDENT BY : SHRI Y.P. RAWALA, CA ITA NO. 4047 /DEL/201 3 ASSESSMENT YEAR: 200 7 - 0 8 THE D.C. I.T. VS. RANI ARORA CENTRAL CIRCLE - 22 201, VPPS CENTRE, 2, NEW DELHI COMMUNITY COMPLEX, MASJID MOTH, G.K. II, NEW DELHI PAN : A AKPA 2702 J APPELLANT BY : SHRI R.S. NEGI, SR. DR RESPONDENT BY : SHRI SANAT KAPOOR, ADV ITA NO. 1678 /DEL/201 2 ASSESSMENT YEAR: 200 5 - 0 6 THE I.T. O VS. RAMESH KUMAR WARD 27(3) HOUSE NO. 213 V & PO NEW DELHI BIJWASAN, NEW DELHI PAN : A IAPR 1585 M B APPELLANT BY : SHRI R.S. NEGI, SR. DR RESPONDENT BY : SHRI KAPIL GOEL, ADV. [APPELLANT] [RESPONDENT] DATE OF HEARING : 0 1 . 0 6 . 201 6 DATE OF PRONOUNCEMENT : 0 1 . 0 6 .2016 ORDER PER BENCH : - TH E ABOVE CAPTIONED APPEAL S PERTAINING TO DIFFERENT ASSESSEES FOR DIFFERENT A.YS HAVE BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) . SINCE THE APPEALS WERE HEARD 3 3 TOGETHER AND PERTAIN TO THE CBDT S RECENT CIRCULAR NO. 21/2015 DATED 10.12.2015 , WE ARE DISPOSING THEM OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 2. TH ESE APPEAL S HA VE BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LAKHS FOR NOT FILING THE APPEAL S BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME - TAX ACT. 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATED 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE 1TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOULD A PPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKHS MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT - DR /SR. DR, APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT THE APPEAL S CAN BE WITHDRAWN O NLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FURTHER 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 BE CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUEN T YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 4 4 5. THE LEARNED COUNSEL S FOR THE ASSESSEE APPEARING IN SOME CASES , ON T HE OTHER HAND, STATED THAT THE C IRCULAR WAS SQUARELY APPLICABLE TO THE PRESENT APPEAL S OF THE REVENUE WHILE IN OTHER CASES, NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE. HOWEVER, THE APPEAL S W ERE HEARD EX PARTE AS THE CBDT CIRCULAR IS BENEFICIAL TO THEM. 6. AFTER CONSIDERING THE SUBMISSIONS O F BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN TH ESE APPEAL S BY THE REVENUE IS BELOW RS. 10.00 LAKHS AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEAL S PARTICULARLY BECAUSE THE PENDING APPEAL S ARE COVERED BY CIRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS.10 LAKHS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCU LAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORDER WHICH THE TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN TH ESE APPEAL S AND WILL NOT BE AN ESTOPPEL FOR T HE REVENUE TO TAKE UP THE ISSUE BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LAKHS. 5 5 7. WE ARE ALSO INCLINED TO AGREE WITH THE CONTENTION OF THE LD. DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS A PPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS. 10 LAKHS. WITH THESE DIRECTIONS WE DEEM IT PROPER TO DISMISS THE APPEALS IN THE LIGHT OF THE CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER 2015. ACCORDINGLY, WITHOUT GO ING INTO MERITS OF THE CASE, WE DISMISS ALL THE INSTANT APPEAL S FILED BY THE REVENUE AS TAX EFFECT IN THE SE APPEAL S IS LESS THAN RS.10 LAKHS. 8. IN THE RESULT, ALL THE SEVEN APPEAL S OF THE REVENUE STAND DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 1 .0 6 .2016. SD/ - SD/ - ( G.D. AGARWAL ) (C.M. GARG) VICE PRESIDENT JUDICIAL MEMBER DATED: 0 1 . 0 6 . 2016. VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI