DCIT, Sonepat V. M/s. The Sonepat Co-op. Sugar Mills Ltd., Sonepat

ITA 3015/DEL/2014

• Counselvise Citation: 301520114 RSA 2014
• Duration Of Justice: 1 year(s) 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 16-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SMT. DIVA SINGH SMT. DIVA SINGH SMT. DIVA SINGH SMT. DIVA SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA/C.O.NO. ITA/C.O.NO. ITA/C.O.NO. ITA/C.O.NO. APPELLANT APPELLANT APPELLANT APPELLANT RESPONDENT RESPONDENT RESPONDENT RESPONDENT ASSESSMENT ASSESSMENT ASSESSMENT ASSESSMENT YEAR YEAR YEAR YEAR 2911/DEL/2014 2911/DEL/2014 2911/DEL/2014 2911/DEL/2014 ACIT, ACIT, ACIT, ACIT, CIRCLE CIRCLE CIRCLE CIRCLE- -- -50(1), 50(1), 50(1), 50(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. M/S INTERGLOBE M/S INTERGLOBE M/S INTERGLOBE M/S INTERGLOBE TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., GROUND FLOOR, CENTRAL WING, GROUND FLOOR, CENTRAL WING, GROUND FLOOR, CENTRAL WING, GROUND FLOOR, CENTRAL WING, THAPAR HOUSE, JANPATH, THAPAR HOUSE, JANPATH, THAPAR HOUSE, JANPATH, THAPAR HOUSE, JANPATH, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACI5079A. PAN : AAACI5079A. PAN : AAACI5079A. PAN : AAACI5079A. 2010 2010 2010 2010 - -- - 11 1111 11 2905/DEL/2014 2905/DEL/2014 2905/DEL/2014 2905/DEL/2014 ACIT, ACIT, ACIT, ACIT, CIRCLE CIRCLE CIRCLE CIRCLE- -- -32(1), 32(1), 32(1), 32(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. M/S GLOBAL EXCHANGE (RNS), M/S GLOBAL EXCHANGE (RNS), M/S GLOBAL EXCHANGE (RNS), M/S GLOBAL EXCHANGE (RNS), 19 1919 19- -- -A, AMRIT NAGAR, A, AMRIT NAGAR, A, AMRIT NAGAR, A, AMRIT NAGAR, NDSE, PART NDSE, PART NDSE, PART NDSE, PART- -- -I, I,I, I, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 003. 110 003. 110 003. 110 003. PAN : AAA PAN : AAA PAN : AAA PAN : AAAFG2046G. FG2046G. FG2046G. FG2046G. 2008 2008 2008 2008 - -- - 09 0909 09 2168/DEL/2014 2168/DEL/2014 2168/DEL/2014 2168/DEL/2014 & C.O. NO. & C.O. NO. & C.O. NO. & C.O. NO. 22/DEL/2015 22/DEL/2015 22/DEL/2015 22/DEL/2015 ACIT, ACIT, ACIT, ACIT, CIRCLE CIRCLE CIRCLE CIRCLE- -- -32(1), 32(1), 32(1), 32(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. M/S WIG INVESTMENT, M/S WIG INVESTMENT, M/S WIG INVESTMENT, M/S WIG INVESTMENT, 79, SUNDER NAGAR, 79, SUNDER NAGAR, 79, SUNDER NAGAR, 79, SUNDER NAGAR, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAAFW6972B. PAN : AAAFW6972B. PAN : AAAFW6972B. PAN : AAAFW6972B. 2009 2009 2009 2009 - -- - 10 1010 10 3015/DEL/2014 3015/DEL/2014 3015/DEL/2014 3015/DEL/2014 DCIT, DCIT, DCIT, DCIT, SONEPAT CIRCLE, SONEPAT CIRCLE, SONEPAT CIRCLE, SONEPAT CIRCLE, SONEPAT. SONEPAT. SONEPAT. SONEPAT. M/S THE SONEPAT CO M/S THE SONEPAT CO M/S THE SONEPAT CO M/S THE SONEPAT CO - -- - OP. OP. OP. OP. SUGAR MILLS LIMITED, SUGAR MILLS LIMITED, SUGAR MILLS LIMITED, SUGAR MILLS LIMITED, KAMI KAMI KAMI KAMI ROAD, ROAD, ROAD, ROAD, SONEPAT. SONEPAT. SONEPAT. SONEPAT. PAN : PAN : PAN : PAN : AAAAT0959N. AAAAT0959N. AAAAT0959N. AAAAT0959N. 2009 2009 2009 2009 - -- - 10 1010 10 3060/DEL/2014 3060/DEL/2014 3060/DEL/2014 3060/DEL/2014 ACIT, ACIT, ACIT, ACIT, CIRCLE CIRCLE CIRCLE CIRCLE- -- -24(1), 24(1), 24(1), 24(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. SHRI DEEPAK AZAD, SHRI DEEPAK AZAD, SHRI DEEPAK AZAD, SHRI DEEPAK AZAD, A AA A- -- -2/23, AZAD APARTMENTS, 2/23, AZAD APARTMENTS, 2/23, AZAD APARTMENTS, 2/23, AZAD APARTMENTS, SRI AUROBINDO MARG, SRI AUROBINDO MARG, SRI AUROBINDO MARG, SRI AUROBINDO MARG, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AJJPA3216A. PAN : AJJPA3216A. PAN : AJJPA3216A. PAN : AJJPA3216A. 2008 2008 2008 2008 - -- - 09 0909 09 2884/DEL/2014 2884/DEL/2014 2884/DEL/2014 2884/DEL/2014 ITO, ITO, ITO, ITO, WARD WARD WARD WARD- -- -34(2), 34(2), 34(2), 34(2), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. M/S YARK INTERNATIONAL, M/S YARK INTERNATIONAL, M/S YARK INTERNATIONAL, M/S YARK INTERNATIONAL, M MM M- -- -25, NAVEEN SHAHDARA, 25, NAVEEN SHAHDARA, 25, NAVEEN SHAHDARA, 25, NAVEEN SHAHDARA, DELHI DELHI DELHI DELHI 110 032. 110 032. 110 032. 110 032. PAN : AAAFY7157Q. PAN : AAAFY7157Q. PAN : AAAFY7157Q. PAN : AAAFY7157Q. 2010 2010 2010 2010 - -- - 11 1111 11 APPELLANTS BY : SHRI RAVI JAIN, CIT-DR. RESPONDENT BY : NONE. DATE OF HEARING : 17.12.2015 17.12.2015 17.12.2015 17.12.2015 DATE OF PRONOUNCEMENT : 17.12.2015 17.12.2015 17.12.2015 17.12.2015 2 ORDER ORDER ORDER ORDER PER G.D. AGRAWA PER G.D. AGRAWA PER G.D. AGRAWA PER G.D. AGRAWAL, VP L, VP L, VP L, VP : :: :- -- - ALL THESE GROUPS OF APPEALS BY THE REVENUE AND ONE CR OSS- OBJECTION BY THE ASSESSEE IN THE CASE OF ITA NO.2168/DE L/2014 WERE FIXED BECAUSE APPARENTLY, IN ALL THE CASES, THE TAX EF FECT IS BELOW `10 LAKHS. 2. THE CBDT IN ITS CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF THE DEPA RTMENTAL APPEALS TO THE ITAT AT `10 LAKHS WHICH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS AS UNDER:- 3. HENCEFORTH, APPEAL/SLPS SHALL NOT BE FILED IN CASE S WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LI MITS GIVEN HEREUNDER:- S.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED ME RELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASE S IS TO BE DECIDED ON MERITS OF THE CASE. 3. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETARY LI MITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFERENC E, WE REPRODUCE PARAGRAPH 10 BELOW:- 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PE NDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX 3 LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WH EN SUCH APPEAL WAS FILED. 4. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY A PPLICABLE TO THE APPEAL UNDER CONSIDERATION BEFORE US. 5. LEARNED CIT-DR SHRI RAVI JAIN WHO APPEARED AT TH E TIME OF HEARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CAL L FOR THE REPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADM INISTRATIVE CIT FOR WITHDRAWING THESE APPEALS BECAUSE THE APPEALS W ERE FILED WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED CIT-DR FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF THE SAID CIRCULAR, IT HAS BEEN CLARIFIED BY THE CBDT THAT WITHDRAWAL OF THESE APPEALS BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEALS AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISES BEFORE THE ITAT WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRESCR IBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 7. AFTER CONSIDERING THE SUBMISSIONS OF LEARNED DR, THE FACTS OF THE CASE AND THE CIRCULAR OF THE CBDT, WE ARE OF THE OPI NION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEALS AND CALLING T HE REPORT FROM THE ASSESSING OFFICER BECAUSE, APPARENTLY, THE TAX EFFECT IN VOLVED IN THESE APPEALS OF THE REVENUE IS BELOW `10 LAKHS. HOWEVER, W E ADD HERE THAT IF ON RECEIPT OF ORDER THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE `10 LAKHS OR, IN ANY OTHER MANNER, THE CIRCULA R IS NOT APPLICABLE, HE WILL BE AT LIBERTY TO FILE THE MISCELLANEOUS APPLI CATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT-DR THA T THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE 4 TO TAKE UP THE ISSUE INVOLVED IN THESE APPEALS BEFORE T HE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN ` 10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEALS IN T HE LIGHT OF THE CIRCULAR NO.21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. 8. IN THE RESULT, THE APPEALS OF THE REVENUE AS WELL A S THE CROSS- OBJECTION NO.22/DEL/2015 ARE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 17.12.2015. SD/- SD/- (DIVA SINGH (DIVA SINGH (DIVA SINGH (DIVA SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR