ACIT, New Delhi V. Sh. Om Parkash Bhatia , Delhi

ITA 3373/DEL/2009

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7131 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 18-07-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 29-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS MEENAKSHI SINGH
• Assessee Lawyers: DR RAKESH GUPTA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F : NEW DELHI) BEFORE SHRI J.S. REDDY, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.3373/DEL./2009 (ASSESSMENT YEAR : 2002-03) ITA NO.3377/DEL./2009 (ASSESSMENT YEAR : 2006-07) ACIT, CENTRAL CIRCLE 17, VS. SHRI OM PARKASH BHATI A, NEW DELHI. 606/607, KATRA ISHWAR BHAWAN KHARI BAOLI, DELHI. (PAN : AADPB7746H) (APPELLANT) (RESPONDENT) ASSESSEE BY : DR. RAKESH GUPTA, ADVOCATE AND SHRI SOMIL AGGARWAL, ADVOCATE REVENUE BY : MRS. MEENAKSHI SINGH, CIT DR DATE OF HEARING : 18.07.2016 DATE OF ORDER : 18.07.2016 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ASSISTANT COMMISSIONER OF INCOME-TAX , CENTRAL CIRCLE 17, NEW DELHI (HEREINAFTER REFERRED TO AS THE REVENUE) BY FILING BOTH THE AFORESAID APPEALS SOUG HT TO SET ASIDE THE IMPUGNED ORDERS DATED 28.05.2009 & 25.05.2009 P ASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, NEW DELHI QUA THE ASSESSMENT YEARS 2002-03 & 2006-07 RESPECTIVELY. ITA NOS.3373 & 3377/DEL./2009 2 2. PERUSAL OF THE AFORESAID APPEALS FILED BY THE R EVENUE APPARENTLY SHOW THAT THE SAME ARE HAVING LOW TAX EF FECT 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. THE LD. A.R. CONTENDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE L IGHT OF CBDT CIRCULAR (SUPRA). 3. WE HAVE HEARD PARTIES ON THE ISSUE IN CONTROVER SY 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: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVE N 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 MONETARY LIMITS PRESCR IBED 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 AB OVE MAY BE ITA NOS.3373 & 3377/DEL./2009 3 WITHDRAWN / NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' 4. THE CONTENTION OF LD. SR. D.R. THAT SHE NEEDS S OME TIME TO PROCURE THE REPORT FROM THE ASSESSING OFFICER TO WO RK OUT THE TAX EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEALS IN QUESTION ARE 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 EALS, THE REVENUE IS AT LIBERTY TO APPROACH THE TRIBUNAL UNDER RELEVA NT PROVISIONS OF LAW. 5. 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 LS ARE NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS TH AN RS.10,00,000/- HENCE, THE AFORESAID APPEALS FILED BY THE REVENUE A RE HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 18 TH DAY OF JULY, 2016. SD/- SD/- (J.S. REDDY) (KULDIP SING H) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 18 TH DAY OF JULY, 2016/TS ITA NOS.3373 & 3377/DEL./2009 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-II, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.