DCIT, New Delhi V. M/s. Nalwa Steel & Power Ltd., New Delhi

ITA 3204/DEL/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6895 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 24-01-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 23-05-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO.3204/DEL./2014 (ASSESSMENT YEAR : 2007-08) DCIT, CIRCLE 13 (1), VS. M/S. NALWA STEEL & POWER L TD., NEW DELHI. 28, NAJAFGARH ROAD, NEW DELHI. (PAN : AABCN3209L) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. TULSIYAN, CA REVENUE BY : SHRI RAJESH KUMAR, SENIOR DR DATE OF HEARING : 24.01.2017 DATE OF ORDER : 27.01.2017 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, DEPUTY COMMISSIONER OF INCOME-TAX, C IRCLE 13 (1), NEW DELHI (HEREINAFTER REFERRED TO AS THE REVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE I MPUGNED ORDER DATED 07.02.2014 PASSED BY THE COMMISSIONER OF INCO ME-TAX (APPEALS)-XVI, DELHI QUA THE ASSESSMENT YEAR 2007-0 8. ITA NO.3204/DEL./2014 2 2. BARE PERUSAL OF THE PENALTY ORDER DATED 15.02.20 12 PASSED BY THE ASSESSING OFFICER, IMPOSING PENALTY OF RS.6,54, 432/- ON ACCOUNT OF FURNISHING INACCURATE PARTICULARS OF INC OME TO THE TUNE OF RS.25,98,675/- (RS.19,44,243/- THE AMOUNT OF FUR NISHED INACCURATE PARTICULARS OF INCOME + RS.6,54,432/- ON ACCOUNT OF TAX ON CEILING INCOME) SHOWS THAT THE PENALTY OF RS.6,5 4,432/- HAS BEEN IMPOSED ON THE AMOUNT OF RS.25,98,675/- WHICH FALLS IN THE CATEGORY OF LOW TAX EFFECT. 3. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFF ECT AS PER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APP EAL IN CASE THE TAX EFFECT IS LESS THAN RS.10,00,000/- AND THIS FAC TUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. 4. WE HAVE HEARD LD. SENIOR DR ON THE ISSUE IN CON TROVERSY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIR CULAR (SUPRA) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISED AND THE RELEVANT PORTION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: ITA NO.3204/DEL./2014 3 '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S.NO. APPEALS IN INCOME- TAX MATTERS MONETARY LIMIT (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 MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING 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. APPEAL S BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' 5. THE CONTENTION OF LD. SENIOR D.R. THAT HE NEEDS SOME TIME TO PROCURE THE REPORT FROM THE ASSESSING OFFICER TO WORK OUT THE TAX EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEAL IN QUESTION IS COVERED UNDER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 (SUPRA), THE REVENUE CANNOT IMPORT T HE FACTS WITHIN THE KNOWLEDGE OF THE ASSESSING OFFICER TO FU RTHER PROLONG THE MATTER. HOWEVER, IN CASE ANY FACT WHICH IS OTHE RWISE NOT ON RECORD, WARRANTS THE RESTORATION OF THE PRESENT APP EAL, THE REVENUE ITA NO.3204/DEL./2014 4 IS AT LIBERTY TO APPROACH THE TRIBUNAL UNDER RELEVA NT PROVISIONS OF LAW. 6. IN VIEW OF THE CBDT CIRCULAR NO.21 DATED 10.12. 2015 HAVING RETROSPECTIVE EFFECT AND WHAT HAS BEEN DISCU SSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEA L IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS TH AN RS.10,00,000/- AND WITHOUT GOING INTO THE MERITS OF THE IMPUGNED O RDER PASSED BY LD. CIT (A), HENCE, THE AFORESAID APPEAL FILED BY T HE REVENUE IS HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 27 TH DAY OF JANUARY, 2017. SD/- SD/- (PRASHANT MAHARISHI) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 27 TH DAY OF JANUARY, 2017 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT (A)-XVI, DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.