ITO, New Delhi V. M/s. Fussy Financial Services Pvt. Ltd., New Delhi

ITA 3145/DEL/2014

• Counselvise Citation: 314520114 RSA 2014
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 21-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: KAPIL GOEL
• 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 NO ITA NO ITA NO ITA NO S SS S . .. . 2080 2080 2080 2080 /DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 & 3145/DEL/2014 & 3145/DEL/2014 & 3145/DEL/2014 & 3145/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 20 2020 20 03 0303 03 - -- - 04 & 2004 04 & 2004 04 & 2004 04 & 2004 - -- - 05 0505 05 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -11(3) 11(3) 11(3) 11(3), ,, , NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S FUSSY FINANCIAL SERVICES M/S FUSSY FINANCIAL SERVICES M/S FUSSY FINANCIAL SERVICES M/S FUSSY FINANCIAL SERVICES PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 1117/12, 3 1117/12, 3 1117/12, 3 1117/12, 3 RD RDRD RD FLOOR, NAIWALA, FLOOR, NAIWALA, FLOOR, NAIWALA, FLOOR, NAIWALA, KAROL BAGH, KAROL BAGH, KAROL BAGH, KAROL BAGH, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 015. 110 015. 110 015. 110 015. PAN : AAACF0157G. PAN : AAACF0157G. PAN : AAACF0157G. PAN : AAACF0157G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAVI JAIN, CIT - DR. RESPONDENT BY : SHRI KAPIL GOEL, ADVOC ATE. 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 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THESE APPEALS BY THE REVENUE FOR THE ASSESSMENT YEARS 200 3-04 AND 2004-05 ARE DIRECTED AGAINST THE ORDER OF LEARNE D CIT(A)-XIII, NEW DELHI DATED 31 ST JANUARY, 2014 AND 7 TH MARCH, 2014. 2. THE GROUND RAISED IN THESE APPEALS BY THE REVENUE I S AGAINST THE DELETION OF ADDITIONS OF `16,52,750/- AND `20,02,420 /-. THUS, APPARENTLY, THE TAX EFFECT IS BELOW `10 LAKHS. THE C BDT IN ITS CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF THE DEPARTMENTAL APPEALS TO THE ITAT A T `10 LAKHS WHICH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH REA DS AS UNDER:- ITA-2080 & 3145/DEL/2014 2 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 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 APPEALS 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 ITA-2080 & 3145/DEL/2014 3 LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED I N THESE APPEALS AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMIL AR ISSUE ARISES BEFORE THE ITAT WHERE THE APPEAL IS ABOVE THE TAX LI MIT AS PRESCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 6. LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE FACTS OF TH E ASSESSEES CASE. 7. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE SIDES, W E ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEALS AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE, APPARENTLY, THE TAX EFFECT INVOLVED IN THESE APPEALS OF THE REVENUE I S BELOW `10 LAKHS. HOWEVER, WE ADD HERE THAT IF ON RECEIPT OF ORDER TH E ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE `10 LAKHS OR, IN AN Y OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE, HE WILL BE AT LIBERTY TO FILE THE MISCELLANEOUS APPLICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT-DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTAN CE BY THE REVENUE ON THE ISSUE INVOLVED IN THESE APPEALS AND WIL L NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THESE APPEALS BEFORE THE ITAT ON MERITS IF THE TAX EFFECT I N THOSE YEARS IS MORE THAN `10 LAKHS. WITH THIS REMARK, WE DEEM IT PR OPER TO DISMISS THE APPEALS IN THE LIGHT OF THE CIRCULAR NO.21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. 8. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISMI SSED. 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. ITA-2080 & 3145/DEL/2014 4 COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -11(3), NEW DELHI. 11(3), NEW DELHI. 11(3), NEW DELHI. 11(3), NEW DELHI. 2. RESPONDENT : M/S FUSSY FINANCIAL SERVICES PVT.LTD., M/S FUSSY FINANCIAL SERVICES PVT.LTD., M/S FUSSY FINANCIAL SERVICES PVT.LTD., M/S FUSSY FINANCIAL SERVICES PVT.LTD., 1117/12, 3 1117/12, 3 1117/12, 3 1117/12, 3 RD RDRD RD FLOOR, NAIWALA, FLOOR, NAIWALA, FLOOR, NAIWALA, FLOOR, NAIWALA, KAROL BAGH, NEW DELHI KAROL BAGH, NEW DELHI KAROL BAGH, NEW DELHI KAROL BAGH, NEW DELHI 110 015. 110 015. 110 015. 110 015. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR