DCIT, New Delhi V. M/s. K.S. Hotels (P) Ltd., New Delhi

ITA 2808/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6970 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R SENAPATI
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D : NEW DELHI BEFORE SMT DIVA SINGH , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA/IT(SS)A, CO NO. APPELLANT RESPONDENT AY/ ASST. PERIOD ASSESSEE BY 6480 /DEL/2015 DCIT, CIRCLE - 7(1), NEW DELHI DELHI PRESS PATRA PRAKASHAN PVT. LTD, E - 3, DELHI PRESS BUILDING, JHANDEWALAN ESTATE, NEW DELHI PAN: AAACD3244J 2012 - 13 NONE 3518/DEL/2014 ITO, WARD - 2, REWARI LAKHJEET SINGH ALIAS LAKHPAT, S/O. SH. SHEO NARAIN, VILLAGE AHMADPUR, DIST. REWARI, UP PAN: AECPPL6353B 2007 - 08 NONE 2010/DEL/2006 ACIT, CENTRAL CIRCLE - 18, NEW DELHI M/S. DESTINATION BUILDCON PVT. LTD, S - 212, PUNCHSHEEL PARK, NEW DELHI PAN: AABCD7139D 2004 - 05 NONE 6572/DEL/2013 ACIT, CENTRAL CIRCLE - 09, NEW DELHI NAU NIDH OVERSEAS PVT. LTD, D - 6/13, VASANT VIHAR, NEW DELHI PAN: AABCN3865G 2008 - 09 SHRI DEEPESH GARG, ADV SHRI ASHWANI TANEJA, ADV 103/DEL/2011 DCIT, CIRCLE - 17(1), CR BUILDING, NEW DELHI VASHULINGA FINANCE PVT. LTD, 1004, CHIRANJIV TOWERS, 43, NEHRU PLACE, NEW DELHI PAN: AABC4461G 2007 - 08 SHRI KP GARG, CA 4039/DEL/2002 DCIT, CIRCLE - 7(1), ROOM NO. 312, CR BUILDING, NEW DELHI M/S. SARDAR EXHIBITORS PVT. LTD, 1147, CHANDNI CHOWK, NEW DELHI PAN: AABCS1835K 1999 - 2000 SHRI GS KOHLI, CA 2634/DEL/2013 DCIT, CENTRAL CIRCLE - 14, NEW DELHI JAY PEE COMMODITIES LTD, 1114, 11 TH FLOOR, 11, KG MARG, NEW DELHI PAN: AABCJ7692K 2008 - 09 NONE 1798/DEL/2015 ACIT, CENTRAL CIRCLE - 4, NEW DELHI KUNDAN SINGH, C - 6 & 7/6529, VASANT KUNJ, NEW DELHI PAN: AAXPS1361F 2012 - 13 SHRI GAUTAM JAIN, ADV SHRI PIYUSH KR, KAMAL, ADV 3302/DEL/2014 DCIT, CIRCLE - 3(1), NEW DELHI LALITA BHATIA, 9/15, 2 ND FLOOR, NEHRU ENCLAVE (EAST), KALKAJI EXTENSION, NEW DELHI PAN: AFOPB8939G 2006 - 07 SHRI DIVYANSHU GARG, ADV SHRI AKASH GARG, ADV 5821/DEL/2015 ACIT, CIRCLE - 3, INCOME TAX OFFICER, PILGRIM KURMANCHAL NAGAR SAHKARI BAN K LTD, KURMANCHAL BHAWAN, TALLITAL, NAINITAL 2012 - 13 SHRI K SAMPATH, ADV SHRI V. RAJA KUMAR, ADV 2 LODGE COMPOUND, MALLITAL, NEW DELHI PAN: AAAK7430R 61/DEL/2015 DCIT, CIRCLE - 4, GURGAON TALBROS INTERNATIONAL LTD, 399, UDYOG VIHAR, PHASE - 3, GURGAON PAN: AAACT6398K 2007 - 08 NONE 2654/DEL/2009 ITO, WARD - 16(3), NEW DELHI TITAN SECURITIES LTD, A - 2/3, 304, LUSA TOWER, AZAD PUR, DELHI PAN: AAACT0510D 2001 - 02 SHRI V RAJAKUMAR, ADV 581/DEL/2015 DCIT, CIRCLE - 1, NEW DELHI SAHARA ONE MEDIA & ENTERTAINMENT LTD, CTS 40 - 44, SAHARA INDIA POINT, SV ROAD, GOREGAON (W), MUMBAI PAN: AAACP3047R 2010 - 11 NONE 1071/DEL/2011 ITO, WARD - 5(1), ROOM NO. 376A, CR BUILDING, IP ESTATE, NEW DELHI KALATMAK CONSTRUCTION PVT LTD, 105, VICTORIA PLAZA, SARASWATI MARG, KAROL BAGH, NEW DELHI PAN: AACCK8793M 2007 - 08 NONE 642/DEL/2013 ITO, WARD - 25(3), ROOM NO. 1709, 17 TH FLOOR, PARKYASH KAR BHAWAN, CIVIC CENTRE, MINTO ROAD, NEW DELHI JANAK RAJ ARORA, PROP. M/S. KWALITY TEXTILES (INDIA), 713 - 714, CHURCH MISSION ROAD, FATEH PURI, NEW DELHI PAN: AGIPA5783E 2009 - 10 SHRI K SAMPATH, ADV SHRI V RAJA KUMAR, ADV 1996/DEL/2011 DCIT, CIRCLE, D - 29 & 30, INDUSTRIAL AREA, HARIDWAR TARANG KINETICS (P) LTD, C - 5, SECTOR - 7, NOIDA PAN: AAACT7621B 2006 - 07 NONE 5080/DEL/2014 ITO(TDS), WARD - 3(1), INTL TAX, NEW DELHI KLJ ORGANIC LTD, 63, NAJAFGARH ROAD, RAMA MARG, NEW DELHI PAN: AAACK3722A 2013 - 14 SHRI S.M. NAHATA, ITD 2805/DEL/2015 DCIT, CIRCLE - 14(2), NEW DELHI KESHAV POWER LTD, 4, SCHINDIA HOUSE, NEW DELHI PAN: AACCK5351M 2010 - 11 SHRI R.M. MEHTA, ADV 2807 /DEL/2015 2808/DEL/2015 DCIT, CIRCLE14(1), NEW DELHI K.S. HOTELS (P) LTD, B - 25, CONNAUGHT PLACE, NEW DELHI PAN: AAACK4557B 2007 - 08 AND 2009 - 10 SHRI SALIL AGGARWAL, ADV SHRI SHAILESH GUPTA, CA REVENUE BY : SHRI S.R. SENAPATI, SR. DR DATE OF HEARING 31/07/2018 DATE OF PRONOUNCEMENT 3 1 /07/2018 3 ORDER PER BENCH : 1 . THESE APPEALS BY THE REVENUE ARISE OUT OF THE ORDERS PASSED BY THE CIT(A) IN RELATION TO THE CAPTIONED ASSESSMENT YEARS. 2 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTIO N THAT CBDT VIDE CIRCULAR NO.03/2018 DATED 11 TH JULY 2018 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.20 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE IN STRUCTION OF THE CBDT. LD AR ALSO REITERATED SAME FACTS. 3 . WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 11 TH JULY 2018 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT B EFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT(IN RS.) 1. BEFORE APPELLATE TRIBUNAL 20,00,000 2. BEFORE HIGH COURT 50,00,000 3. BEFORE SUPREME COURT 1,00,00,000 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.20 LAKHS. THERE IS NO DISPUTE THAT THE 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 THE AMOUNT OF RS.20 LAKHS. 4 5. IN VIEW OF THE ABOVE, CIRCULAR NO.3/2018 DATED 10.07.2018 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTA NT CASE AS THE TAX EFFECT IS LESS THAN RS.20 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 3 1 / 07/2018. - S D / - - S D / - ( DI VA SINGH) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 3 1 / 07/2018 . A K KEOT COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR, ITAT AR, ITAT, NEW DELHI.