DCIT Central Circle-1, Udaipur V. Hukmi Chand Jain , Beawar

ITA 331/JODH/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1944 (ITAT-JODHPUR)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 19-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 13; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, JODHPUR BEFORE SHRI N.K. SAINI, VICE PRESIDENT AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA NO. 331/JODH/2019 ASSESSMENT YEAR: 2015-16 THE DCIT VS. SHRI HUKMI CHAND JAIN CENTRAL CIRCLE-1 15, SAJJAN NIWAS, UDAIPUR VINOD NAGAR, BEAWAR PAN NO. ACFPJ5893B (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY: SHRI K.C. BADHOK, CIT DR DATE OF HEARING : 26/11/2019 DATE OF PRONOUNCEMENT : 26/11/2019 O R D E R PER N.K.SAINI, VICE PRESIDENT : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A)-2, UDAIPUR DT. 28/06/2019. 2. DURING THE COURSE OF HEARING NONE APPEARED ON BE HALF OF THE ASSESSEE. IT IS NOTICED THAT THE APPEAL FILED BY TH E DEPARTMENT IS NOT MAINTAINABLE IN VIEW OF THE CIRCULAR NO. 17/2019 DT . 08/08/2019 ISSUED BY CBDT WHEREIN THE MONETARY LIMIT FOR FILING THE APPE ALS BY THE DEPARTMENT BEFORE THE ITAT HAS BEEN INCREASED TO RS. 50,00,000 /- FROM RS. 20,00,000/-. 2 3. IN THE RIVAL SUBMISSIONS THE LD. CIT DR SUBMITTE D THAT THE CIRCULAR NO. 17/2019 DT. 08/08/2019 IS NOT CLEARLY RETROSPECTIVE IN AS MUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT THE SAID MODIF ICATION SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR IT WAS STATED THAT THE AFORESAID SENTENCE CLEARLY GIVES AN IMPRESSION THAT THE SAID CIRCULAR IS APPLICABLE AFTER THE DATE MENTIONED THERE IN AND TH EREAFTER THE DEPARTMENTAL APPEALS WHICH COME IN THE SPECIFIED TA X EFFECT LIMIT WILL NOT BE FILED. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. DR AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN T HE PRESENT CASE IT IS AN ADMITTED FACT THAT THE CBDT VIDE CIRCULAR NO. 17/20 19 ENHANCED THE MONETARY LIMIT TO RS. 50,00,000/- FOR NOT FILING TH E APPEAL BY THE DEPARTMENT BEFORE THE ITAT, EARLIER THIS LIMIT WAS SPECIFIED AT RS. 20,00,000/- IN THE ORIGINAL CIRCULAR NO. 03/2018 DT . 11/07/2018. NOW VIDE THE NEW CIRCULAR NO. 17/2019 DT. 08/08/2019 THE TA X EFFECT LIMIT HAS BEEN ENHANCED AND THIS NEW CIRCULAR DT. 08/08/2019 READ AS UNDER; CIRCULAR NO. - 17 OF 2019 DATE - 8TH AUGUST 2019 FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APP EALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH C OURTS AND SLPS/APPEALS BEFORE SUPREME COURT -AMENDMENT TO CIRCU LAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION. CIRCULAR NO. 3/2018 DATED 11TH JULY 2018 HAS BEEN REP LACED BY CIRCULAR NO. 17/2019 DATED 8TH AUGUST 2019 TO ENHANCE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT FOR RED UCING LITIGATION. 3 APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) [PREVIOUS LIMIT) MONETARY LIMIT (RS.) (REVISED LIMIT) BEFORE APPELLATE TRIBUNAL 20,00,000 50,00,000 BEFORE HIGH COURT 50,00,000 1,00.00.000 BEFORE SUPREME COURT 1,00,00,000 2.00.00,000 THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFECT SE PARATELY 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 RE SPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIG H COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSM ENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHI CH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MOR E THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY . 5. FROM THE CONTENTS OF THE AFORESAID CIRCULAR IT I S CRYSTAL CLEAR THAT THE ANOMALY IN THE EARLIER CIRCULAR NO. 3 OF 2018 DT. 1 1/07/2018 AT PAGE 5 HAS BEEN REMOVED AND THE LIMIT SPECIFIED IN PARA 3 OF T HE EARLIER CIRCULAR HAS BEEN ENHANCED. IT IS ALSO NOT IN DISPUTE THAT THE E ARLIER CIRCULAR WAS APPLICABLE RETROSPECTIVELY TO THE PENDING APPEALS / CROSS OBJECTIONS AND PARA NOS. 12 & 13 OF THE ORIGINAL CIRCULAR NO. 03/2 018 DT. 11/07/2018 READ AS UNDER: 12. IT IS CLARIFIED THAT THE MONETARY LIMIT OF RS. 20 LAKH S FOR FILING APPEALS BEFORE THE IT AT WOULD APPLY EQUALLY TO CROSS OBJECT IONS UNDER SECTION 253(4) OF THE ACT. CROSS OBJECTIONS BELOW THIS MONETA RY LIMIT, ALREADY FILED, SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESS ED. FILING OF CROSS OBJECTIONS BELOW THE MONETARY LIMIT MAY NOT BE CONSID ERED HENCEFORTH. SIMILARLY, REFERENCES TO HIGH COURTS AND SLPS/ APPEAL S BEFORE SUPREME COURT BELOW THE MONETARY LIMIT OF RS. 50 LAKHS AND RS. 1 CRORE RESPECTIVELY SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESS ED. REFERENCES 4 BEFORE HIGH COURT AND SLPS/ APPEALS BELOW THESE LIMITS MAY NOT BE CONSIDERED HENCEFORTH. 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OB JECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SCIHCS/TRIBUNAL AND IT SHALL ALS O APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJEC TIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 6. NOW THE CBDT SIMPLY ENHANCED THE MONITORY LIMIT AND THE DIRECTIONS GIVEN EARLIER VIDE PARA NOS. 12 & 13 OF THE CIRCULA R NO. 3 / 2018 DT. 11/07/2018 ARE STILL INTACT WHICH IS CRYSTAL CLEAR FROM THE LANGUAGE OF THE CIRCULAR NO. 17/2019 WHEREIN IT HAS BEEN MENTIONED THAT THERE IS ENHANCEMENT OF MONETARY LIMIT AND AMENDMENT TO CIRC ULAR NO. 3 /2018 FOR REDUCING THE LITIGATION. WE THEREFORE ARE OF THE CONFIRMED VIEW THAT THE AMENDED CIRCULAR NO. 17/2019 NOW ISSUED BY THE CBDT IS ALSO APPLICABLE TO THE PENDING APPEALS AS HAS BEEN SPECI FIED IN PARA 13 OF THE ORIGINAL CIRCULAR NO. 3/2018 DT. 11/07/2018 AND THAT THE DEPARTMENT OUGHT NOT HAVE FILED THE APPEALS BEFORE THE ITAT WH ERE THE TAX EFFECT IS RS. 50 LACS OR LESS. FOR THE AFORESAID VIEW WE ARE ALSO FORTIFIED BY THE DECISION DT. 14/08/2019 OF THE COORDINATE BENCH I.E ; ITAT, AHMEDABAD BENCH A AHEMDABAD IN ITA NO. 1398/AHD/2004 FOR TH E A.Y. 1998-99 IN THE CASE OF ITO, WARD-3(2) AHMEDABAD VS. DINESH MAD HAVLAL PATEL, AHMEDABAD & OTHERS WHEREIN IT HAS BEEN HELD IN PARA 5 TO 7 AS UNDER: 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVI NG PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HES ITATION IN HOLDING 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. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCU LAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS I S EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 5 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APP EALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETAR Y 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 FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED, PARA 5 OF THE CIRCU LAR IS SUBSTITUTED BY THE FOLLOWING PARA: '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 CAS E OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ON E 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 SPEC IFIED 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 CAS E OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHIC H INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED I N RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHE RE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE A SSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY' 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM 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 REMAINE D INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHI CH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ A PPEALS/ 6 CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRA WN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPE ALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FI LED HENCEFORTH. 7. IN VIEW OF THE AFORESAID DISCUSSION THE APPEAL F ILED BY THE DEPARTMENT IS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 26/11/2019 ) SD/- SD/- (SANDEEP GOSAIN) (N.K. SAINI) JUDICIAL MEMBER VICE PRESIDENT DATED : 26/11/2019 AG COPY TO: 1.THE APPELLANT, 2. THE RESPONDENT, 3. THE CIT(A), 4. THE CIT, 5. THE DR