ITO, New Delhi V. Mr. Khan Sultan Mohammad, Delhi

ITA 3059/DEL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6187 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 16-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN GOTRU
• Assessee Lawyers: S S KATYAL
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : D : NEW DELHI BEFORE S HRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. 3059 & 3060 /DEL /20 1 3 [ ASSESSMENT YEAR : 20 0 8 - 09 ] THE I.T .O VS. M/S KHAN SULTAN MOHAMMAD WARD 46 (1) 278, C - 1, JAMIA NAGAR NEW DELHI OKHLA, NEW DELHI PAN : A NHPM 3417 B APPELLANT BY : SHRI SHRAVAN GOTRU , SR. DR RESPONDENT BY : SHRI S.S. KATYAL, CA ITA NO. 5430 & 5432 /DEL /201 2 [ ASSESSMENT YEAR: 200 5 - 0 6 & 2007 - 08 ] THE A.C. I.T VS. M/S LOK PRIYA NURSING HOME CENTRAL CIRCLE SAMRAT, PALACE GARH ROAD MEERUT MEERUT PAN : A ABCL3281 F APPELLANT BY : SHRI SHRAVAN GOTRU, SR. DR RESPONDENT BY : NONE [ADJOURNMENT APPLICATION] ITA NO. 1593 /DEL /20 1 0 ASSESSMENT YEAR: 2007 - 08 THE I.T. O VS. M/S KRISHNA TRADING COMPANY WARD - - II(2) 1D/168 NIT FARIDABAD FARIDABAD PA N : A AHFK2313 F APPELLANT BY : SHRI SHRAVAN GOTRU, SR. DR RESPONDENT BY : NONE [APPELLANT] [ RESPONDENT] 2 DATE OF HEARING : 29 . 0 3 .201 6 DATE OF PRONOUNCEMENT : 3 1 . 0 3 .2016 ORDER PER BENCH : THESE ARE A BUNCH OF APPEALS FILED BY THE REVENUE DIRECTED AGAINST SEPARATE ORDER S OF THE LD. CIT(A) PERTAINING TO DIFFERENT ASSESSMENT YEARS . SINCE THE ISSUES INVOLVED IN THESE APPEALS ARE SIMILAR AND THE APPEALS WERE HEARD TOGETHER, SO THESE ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. TH ESE APPEAL S HA VE BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT IN STRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LA KH S FOR NOT FILING THE APPEAL 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 INS TRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING 3 APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT - DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL S CAN BE WITHDR AWN ONLY 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 SUBS EQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. THE LEARNED COUNSEL FOR THE ASSESSEE APPEARING IN THE CASE OF M/S KHAN SULTAN MOHAMMAD, ON T HE OTHER HAND, STATED THAT THE C IRCULAR WAS SQUARELY APPLICABLE TO THE PRESENT APPEAL S OF THE REVENUE WHILE IN SOME 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. 4 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THESE APPEALS BY THE REVENUE IS BELOW RS. 10.00 LA KH S AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEALS PARTICULARLY BECAUSE THE PENDING APPEAL I S 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 T HE TAX EFFECT IS ABOVE RS.10 LAKH S OR IN ANY OTHER MANNER, THE C IRCULAR IS NOT APPLICABLE IN VIEW O F EXCEPTI ONS CULLED OUT IN THE C IRCULAR, 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 THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUES, INVOLVED IN THESE APPEALS, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS .10 LA KH S. 7. KEEPING IN VIEW THE ABOVE CIRCULAR AND THE PROVISIONS OF SECTION 268A OF THE INCOME - TAX ACT, 1961 AND WITHOUT GOING INTO MERITS OF THE CASES, WE DISMISS THE INSTANT APPEAL S FILED BY THE REVENUE AS TAX EFFECT IN ALL THE APPEAL S IS LESS THAN RS.10 LA KHS . 5 8 . IN THE RESULT, ALL THE APPEAL S OF THE REVENUE STAND DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 3 1 . 0 3 .201 6 . S D / - S D / - ( L.P. SAHU ) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3 1 S T MARCH, 201 6 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI