M M Educational Institute, Gurgaon V. ITO, Gurgaon

ITA 2827/DEL/2015

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 4109 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 08-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NAINA SOIN KAPIL
• Keywords: Retrospective amendment; Tax effect

Judgement Text

1 ITA NOS. 2827 & 3266/DEL/2015 IN THE INCOME TAX APPELLA TE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT ME MBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A .NO. 2827/DEL/2 015 (A.Y 2010-11) M M EDUCATIONAL INSTITUTE B-36M GOVINDAM PALACE OLD DLF, SECTOR-14 GURGAON AAQFM3811M (APPELLANT) VS ITO WARD-2(4), 6 TH FLOOR, HSIIDC BUILDING, VANIJYA NIKUNJ, UDYOG VIHAR, PHASE-II GURGAON (RESPONDENT) I.T.A .NO. 3266/DEL/2 015 (A.Y 2010-11) ITO WARD-2(4), 6 TH FLOOR, HSIIDC BUILDING, VANIJYA NIKUNJ, UDYOG VIHAR, PHASE-II GURGAON (APPELLANT) VS M M EDUCATIONAL INSTITUTE B-36M GOVINDAM PALACE OLD DLF, SECTOR-14 GURGAON AAQFM3811M (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SMT. NAINA SOIN KAPIL, SR. DR ORDER PER SUCHITRA KAMBLE, JM THESE TWO APPEALS ARE FILED BY THE ASSESSEE AND THE REVENUE AGAINST THE ORDER DATED 20/3/2015 PASSED BY CIT(A)-1, GURGAON F OR ASSESSMENT YEAR 2010-11. DATE OF HEARING 10.10.2018 DATE OF PRONOUNCEMENT 11.10.2018 2 ITA NOS. 2827 & 3266/DEL/2015 2. WHEN THE MATTER WAS CALLED OUT FOR HEARING, NONE APPEARED FOR THE ASSESSEE. AFTER GOING THROUGH THE EARLIER PROCEEDIN GS, IT WAS SEEN THAT DESPITE ISSUING NOTICE TO THE ASSESSEE, NONE APPEARED FOR T HE ASSESSEE ON 18/7/2018 AS WELL AS ON 10/10/2018. 3. HAVING REGARD TO RULE 19(2) OF INCOME TAX APPELL ATE TRIBUNAL RULES AND FOLLOWING VARIOUS DECISIONS OF DELHI BENCH OF THE T RIBUNAL INCLUDING THAT OF MULTIPLAN INDIA LTD. [38 ITD 320 (DELHI)] AND HONB LE MADHYA PRADESH HIGH COURTS DECISION IN CASE OF ESTATE OF LATE TUKOJIRA O HOLKAR VS. CWT [223 ITR 480 (MP)], THE APPEAL FILED BY THE ASSESSEE IS TREA TED AS UN-ADMITTED AND DISMISSED. 4. IN RESULT, THE APPEAL OF THE ASSESSEE BEING ITA NO. 2827/DEL/2015 IS DISMISSED FOR NON PROSECUTION. 5. AS REGARDS THE REVENUES APPEAL, FROM THE PERUSA L OF THE RECORDS AND THE SUBMISSIONS OF THE LD. DR, IT CAN BE SEEN THAT THE TAX EFFECT IN THIS APPEAL IS BELOW 20 LAKHS. THEREFORE, THE LD. DR WAS ASKED AS TO WHY THE APPEAL FILED BY THE REVENUE SHOULD NOT BE DISMISSED DUE TO LOW TAX EFFECT IN THE LIGHT OF THE RECENT CBDT CIRCULAR NO.03/2018 DATED 11 TH JULY, 2018. 6. WE HAVE HEARD THE LD. DR. IT IS FOUND THAT PURSU ANT TO THE MANDATE OF SECTION 268A, THE CBDT HAS ISSUED CIRCULAR NO. 0 3 OF 2018, DATED 11TH JULY, 2018 WITH RETROSPECTIVE EFFECT, REVISING THE MONETARY LIMIT TO RS.20,00,000/- FOR NOT FILING APPEALS BEFORE THE TR IBUNAL. IT IS FURTHER FOUND THAT AS THE TAX EFFECT INVOLVED IN THE INSTANT APPE AL IS LESS THAN RS.20,00,000/-, THE PRESENT APPEAL IS NOT MAINTAINA BLE. 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/-. 3 ITA NOS. 2827 & 3266/DEL/2015 7. GOING BY THE PRESCRIPTION OF THE ABOVE STATED CI RCULAR, IT IS OBSERVED THAT THE INSTRUCTION IS APPLICABLE TO THE PENDING APPEALS ALSO WITH RETROSPECTIVE EFFECT AND THERE IS A CLEAR-CUT DIREC TION TO THE DEPARTMENT TO WITHDRAW OR NOT PRESS SUCH APPEALS FILED BEFORE THE ITAT, WHEREIN TAX EFFECT IS LESS THAN RS.20,00,000/-. WE ARE, THEREFORE, OF THE VIEW THAT THE REVENUE SHOULD HAVE EITHER NOT FILED THE INSTANT APPEAL BEF ORE THE TRIBUNAL OR WITHDRAWN THE SAME AS THE TAX EFFECT IN THIS APPEAL IS ADMITTEDLY LESS THAN THE PRESCRIBED LIMIT, I.E., RS. 20,00,000/- FOR NOT FIL ING THE APPEAL. ACCORDINGLY, WE DISMISSED THE INSTANT APPEAL WITHOUT GOING INTO MER ITS OF THE CASES. 8. THE LD. DR HAS BROUGHT TO OUR NOTICE A LETTE R DATED 20.08.2018 OF THE DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL TH E PRINCIPAL CCITS IN WHICH PARA NO. 10 OF THE EARLIER CIRCULAR DATED 11.7.2018 , ENUMERATING CERTAIN INSTANCES IN WHICH THE APPEALS SHOULD BE CONTESTED NOTWITHSTANDING THE LOW TAX EFFECT, HAS BEEN REVISED. HE, HOWEVER, COULD N OT PLACE ANY MATERIAL ON RECORD TO DEMONSTRATE THAT THE ABOVE APPEAL IS COVE RED BY THE AMENDED PARA OF THE CIRCULAR. UNDER THESE CIRCUMSTANCES, WE DISMISS ED THE APPEAL FILED BY THE REVENUE AND GIVE LIBERTY TO THE DEPARTMENT TO FILE MISCELLANEOUS APPLICATIONS, IF IT IS FOUND THAT EITHER THE TAX EFFECT IS MORE T HAN THE PRESCRIBED LIMIT OF RS.20,00,000/- OR THE APPEAL GETS COVERED IN THE RE VISED PARA 10 OF THE LETTER DATED 20.08.2018. ACCORDINGLY, THE APPEAL OF THE R EVENUE BEING ITA NO. 3266/DEL/2015 STANDS DISMISSED. 9. IN RESULT, BOTH THE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER, 2018 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 11/10/2018 R. NAHEED * 4 ITA NOS. 2827 & 3266/DEL/2015 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 10 .10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 10 .10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 1 1 .10.2018 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 1 .10.2018 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 1 .10.2018 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 5 ITA NOS. 2827 & 3266/DEL/2015