Income Tax Officer, Ward 3, Pathankot V. Shri Subhash Chander Saggi, Lajpat Nagar-2 New Delhi

ITA 311/ASR/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3837 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-08-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 26-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VINAMAR GUPTA LD
• Keywords: Tax effect
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL AMRITSAR BENCH, AMRITSA R BEFORE SH. B.R. BASKARAN, ACCOUNTANT MEMBER AN D SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA NOS.311 & 312/ASR/201 7 ASSESSMENT YEARS:2008-09 & 2010-11 INCOME TAX OFFICER WARD-3, PATHANKOT VS. SH. SUBHASH CHANDER SAGGI B-52, 3 RD FLOOR, LAJPAT NAGAR-2, NEW DELHI [PAN:APTPS 9171C] (APPELLANT) (RESPONDENT) CROSS OBJECTION NOS.01 & 02/ASR/2019 (ARISING OUT OF ITA NOS.311 & 312/ASR/2017) ASSESSMENT YEAR: 2008-09 & 2010-11 SH. SUBHASH CHANDER SAGGI B-52, 3 RD FLOOR, LAJPAT NAGAR-2,NEW DELHI [PAN:APTPS 9171C] VS. INCOME TAX OFFICER WARD-(6)3, PATHANKOT (CROSS OBJECTOR) (RESPONDENT) APPELLANT BY: SH. CHARAN DASS (LD. DR) RESPONDENT BY: SH. VINAMAR GUPTA (LD.CA) DATE OF HEARING: 21.08.2019 DATE OF PRONOUNCEMENT: 21.08.2019 ORDER PER BENCH THE REVENUE DEPARTMENT HAS PREFERRED THE CAPTIONED APPEALS AGAINST THE ORDERS IMPUGNED HEREIN PASSED BY TH E LD. CIT(A) IN THE CAPTIONED MATTERS U/S 250(6) OF THE ACT, 1961 (HEREINAFTER CALLED AS THE ACT), WHEREAS THE ASSESSEE HAS ALSO PREFERRED THE CROSS OBJECTIONS CAPTIONED ABOVE . ITA NOS.311 & 312/ASR/2017 C.O. NOS.01 & 02/ASR/2019 ITO VS. SUBHASH CHANDER SAGGI 2 2. AT THE OUTSET IT IS OBSERVED THAT TAX EFFECT INVOLVED IN THE APPEALS IS NOT MORE THAN 50 LACS, AND CROSS OBJECTIONS ARE MORE OR LESS IN FAVOUR OF THE IMPUGNED ORDER, HENCE THE SAME HAVE BEEN TAKEN SIMULTANEOUSLY FOR ADJUDICATION BY THIS COMP OSITE ORDER. IN VIEW OF THE LATEST CBDT CIRCULAR NO.17/2019 , DATED 08.08.2019 THESE APPEALS ARE LIABLE TO BE DISMISSED AS NO T MAINTAINABLE. THE LD. DR THOUGH AGREED THAT THE TAX EFFECT IN THE INSTANT APPEALS IS NOT EXCEEDING THE THRESHOLD LIMIT OF 50 LACS AS PRESCRIBED UNDER CIRCULAR NO.17/2019 (SUPRA), HOWEVER , EMPHASIZED THAT THE SAID CIRCULAR IS APPLICABLE FROM THE DATE OF ISSUE OF CIRCULAR I.E. 8 TH AUGUST, 2019 AND THEREFORE, THE EFFECT TO THE CIRCULAR CANNOT BE GIVEN RETROSPECTIVELY, AS PARA NO. 4 OF THE CIRCULAR PRESCRIBES ' THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR ', THEREFORE, ONLY INFERENCE CAN BE DRAWN THAT FROM 8 TH AUGUST, 2019 ONWARDS, THE REVENUE DEPARTMENT IS PRECLUDED FROM FILING THE APPEALS AGAINS T THE ORDERS IN WHICH THE TAX EFFECT LIMIT DOES NOT EXCEED AS SP ECIFIED IN THE CIRCULAR, BUT NOT OTHERWISE APPLICABLE TO THE P ENDING APPEALS. 3. HAVING CONSIDERED THE TAX EFFECT INVOLVED IN THE APPE ALS UNDER CONSIDERATION AND THE ISSUE RAISED BY THE LD. DR. 4. THE ITAT BENCH AT AHMEDABAD IN INCOME TAX OFFICER WARD 3(2), AHMEDABAD VS DINESH MADHAVLAL PATEL {ITA NO.1398/AHD/2004 RELEVANT TO THE A.Y.1998-99} AS A L EAD CASE, VIDE ITS ORDER DATED 14 TH AUGUST, 2019 THOROUGHLY CONSIDERED THE CIRCULAR NO.17/2019 (SUPRA) IN CONJOINT WITH CBDT CIRCU LAR ITA NOS.311 & 312/ASR/2017 C.O. NOS.01 & 02/ASR/2019 ITO VS. SUBHASH CHANDER SAGGI 3 NO.03/2018 AND RESOLVED THE CONTROVERSY WITH REGARD TO THE EFFECT OF THE CIRCULAR QUA RETROSPECTIVE OR PROSPECTIVE. FOR THE SAKE OF BREVITY AND READY REFERENCE, THE CONCLUDING PAR T OF THE ORDER IS REPRODUCED HEREIN BELOW. 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVI NG PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HESITATION IN HOLDING THAT THE CONCESSION EXTEND ED BY THE CBDT NOT ONLY APPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE T O THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE O F REASONING IS THIS. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AN D SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR . THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM TH E CIRCULAR DATED 8TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTER S MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50,00,000 2 BEFORE HIGH COURT 1,00,00,000 3 BEFORE SUPREME COURT 2,00,00,000 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGH ER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS- A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITU TED BY THE FOLLOWING PARA: ITA NOS.311 & 312/ASR/2017 C.O. NOS.01 & 02/ASR/2019 ITO VS. SUBHASH CHANDER SAGGI 4 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT F ROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAPH 13 OF THE AFORES AID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTI VELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENC ES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8TH AUGUST 2019 ITA NOS.311 & 312/ASR/2017 C.O. NOS.01 & 02/ASR/2019 ITO VS. SUBHASH CHANDER SAGGI 5 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. 8. LEARNED COMMISSIONER (DR) THEN SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHE R VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUD ED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBERTY TO PO INT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY OTHER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGARD. 9. IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS STAND DISMISSED AS WITHDRAWN. AS THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE AND AS ALL THE RELATED CROSS-OBJECTIONS OF THE ASSESSEE ARISE ONLY AS A RESULT OF THOSE APPEALS AND MERELY SUPPORT THE ORDE R OF THE CIT(A), THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. ORDERED, ACCORDINGLY. 10. AS WE PART WITH THE MATTER, WE MUST PLACE ON RE CORD OUR DEEP APPRECIATION TO OUR OWN TEAM WHICH HAS PAINSTAKINGLY IDENTIFIED ALL THESE LOW TAX EFFECT A PPEALS IN THE LONG WEEKEND AND LESS THAN TWO WORKING DAYS, TO THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX GUJARAT, AS ALSO THE LEARNED DEPARTMENTAL REPRESENTATIVES, FOR HIS IMMENSE HELP, COOPERATION AND ACTIVE INVOLVEMENT IN SPEEDILY DISPOSING OF THESE APPEALS, AND, OF COURS E, TO THE ITAT BAR ASSOCIATION AHMEDABAD FOR THEIR WHOLE HEAR TED COOPERATION IN THIS SPECIAL DRIVE. THE CIRCULAR WAS ISSUED ON THURSDAY THE 8TH AUGUST 2019, AND WITHIN TWO WOR KING DAYS AND THE LONG WEEKEND, TODAY ON 14TH AUGUST 201 9, ALL THE APPEALS STAND DISPOSED OF. ITS ONLY A TEAM EFFORT ITA NOS.311 & 312/ASR/2017 C.O. NOS.01 & 02/ASR/2019 ITO VS. SUBHASH CHANDER SAGGI 6 AND WHOLE HEARTED COOPERATION OF ALL THE STAKEHOLDE RS THAT CAN ENABLE US TO SO SPEEDILY IMPLEMENT TAXPAYER FRI ENDLY INITIATIVES OF THE GOVERNMENT OF INDIA. THE TAXPAYE R RELIEF INVOLVED IN THESE APPEALS, INCLUDING INTEREST AND T HE OTHER COROLLARIES, IS ESTIMATED TO BE WELL OVER RS 350 CR ORES. THE LEAD CASE BEFORE US IS AN APPEAL FILED OVER FIFTEEN YEARS AGO BY THE INCOME TAX OFFICER AND IT DEALS WITH AN ASSESSMENT YEAR WHICH PERTAINS TO THE PERIOD OVER T WENTY YEARS AGO. YET, THE MATTER HAD NOT REACHED THE FINA LITY AND THE REVENUES CHALLENGE TO THE RELIEF GRANTED BY TH E COMMISSIONER (APPEALS) HAD REMAINED UNDECIDED. THAT IS NOTHING BUT PROLONGED AGONY OF UNCERTAINTY TO THE TAXPAYERS. IT IS INDEED AN APPRECIABLE GOODWILL GE STURE BY THE GOVERNMENT, FOR SO MANY TAXPAYERS, ON THE EVE O F THIS INDEPENDENCE DAY AND OFFERING THEM FREEDOM FROM THE PROLONGED MENTAL AGONY AND UNCERTAINTY OF LITIGATIO N. 11. IN THE RESULTS, ALL THE APPEALS ARE DISMISSED A S WITHDRAWN AND THE CROSS OBJECTIONS ARE DISMISSED AS INFRUCTUO US. PRONOUNCED IN THE OPEN COURT TODAY ON THE 14TH AUGU ST, 2019. 5. IN THE AFORESAID JUDGMENT, THE CO-ORDINATE BENCH OF ITAT AHMEDABAD, HAS ELABORATELY DISCUSSED THE PROBABLE ISSUES AND HELD THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY A PPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALL Y APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW ON THE REASONING THA T THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR, IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMEN T THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CI RCULAR (PERTAINS TO MONETARY LIMIT FOR FILLING THE APPEALS {EMPHASIS OURS} ) . A LL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHI CH PRESCRIBE THAT THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OBJECTIONS/ REFE RENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTI VELY TO PENDING SLPS/ APPEALS/ ITA NOS.311 & 312/ASR/2017 C.O. NOS.01 & 02/ASR/2019 ITO VS. SUBHASH CHANDER SAGGI 7 CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED . 6. EVEN THE APEX COURT IN THE CASE OF DY. COMMISSIONER OF INCOME TAX, CIRLCE-1(2)(2) MUMBAI & ORS. PETITIONER(S) V ERSUS MSEB HOLDING COMPANY LTD. RESPONDENT(S) (SPECIAL LEAV E PETITION (CIVIL) DIARY NO.26373/2019) VIDE ITS ORDER DATED 16-08- 2019, HAS TAKEN THE COGNIZANCE OF CBDT CIRCULAR NO.17/2019 DATED 08 TH AUGUST 2019 AND DISMISSED THE APPEAL BY HOLDING: O R D E R DELAY CONDONED. SINCE THE TAX EFFECT INVOLVED IN THIS MATTER IS LES S THAN RS.2 CRORES, WE SEE NO REASON TO INTERFERE IN THIS MATTER. THE S PECIAL LEAVE PETITION IS DISMISSED, LEAVING ALL THE QUESTIONS OF LAW OPEN. PENDING APPLICATION(S), IF ANY, SHALL S TAND DISPOSED OF. 7. IN VIEW OF THE AFORESAID JUDGMENTS OF APEX COURT AND AHMEDABAD BENCH OF ITAT AND WHILE READING THE CBDT CIRCULAR NO. 17/2019 AND NO. 03 OF 2018 CONJOINTLY, WE DO NOT HAVE HESITATION TO HOLD THAT THE EFFECT OF CBDT CIRCULARS NO . 17/2019 SHALL BE RETROSPECTIVELY AND THEREFORE APPLICABLE TO TH E PENDING APPEALS AS WELL, HENCE THE APPEALS UNDER CONSIDERATION FI LED BY THE REVENUE DEPARTMENT ARE LIABLE TO BE DISMISSED AS WITHDRAWN. 8. CROSS OBJECTIONS THE CROSS OBJECTIONS FILED BY THE ASSEEEE ARE MORE OR LESS IN SUPPORT OF THE ORDERS IMPUGNED AND EVEN THE ASSESSEE H AS WITHDRAWN THE SAME, HENCE IN VIEW OF DISMISSAL OF APPEAL OF THE REVENUE DEPARTMENT AND STATEMENT OF LD. COUNSEL OF TH E ASSESSEE, THE CROSS OBJECTIONS FILED BY THE ASSESSEE ALSO STAND S DISMISSED AS INFRUCTUOUS AND WITHDRAWN. ITA NOS.311 & 312/ASR/2017 C.O. NOS.01 & 02/ASR/2019 ITO VS. SUBHASH CHANDER SAGGI 8 9. IN THE RESULT, THE APPEALS FILED BY THE REVENUE DEPA RTMENT STANDS DISMISSED AS WITHDRAWN, WHEREAS THE CROSS OBJECTIONS FILED BY THE ASSEEEE STANDS DISMISSED AS INFRUCTUOUS AND WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 21/0 8/2019. SD/- SD/- (B.R.BASKARAN) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED:21/08/2018 /PK/ PS. COPY FORWARDED TO: 1. THE APPELLANTS 2. THE RESPONDENTS 3. THE CITS 4. THE CIT(APPEALS) 5. SR DR, I.T.A.T. AMRITSAR 6. GUARD FILE TRUE COPY BY ORDER