ACIT, Ghaziabad V. M/s. Zodiac Transport Co. Pvt. Ltd., New Delhi

ITA 3389/DEL/2012

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0570 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 06-07-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 29-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR CHADHA
• Keywords: Retrospective amendment; Tax effect; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D : NEW DELHI) BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.3683/DEL./2009, (A. Y. 2006-07) INCOME TAX OFFICER, VS. M/S. ZODIAC TRANSP ORT CO. PVT. LTD. WARD-18(4), RZ-835 A/1, GALI NO. 18B, NEW DELHI. SADH NAGAR PALAM COLONY, NEW DELHI-110045 (PAN : AAACZ2139G) ITA NO.3387/DEL./2012, (A .Y. 2003-04) ITA NO.3388/DEL./2012, (A.Y. 2004-05) ITA NO.3389/DEL./2012, (A.Y. 2005-06) ITA NO.3390/DEL./2012, (A.Y. 2005-06) ITA NO.3393/DEL./2012, (A.Y. 2009-10) ACIT VS. M/S. ZODIAC TRANSPORT CO. PVT. LTD. CENTRAL CIRCLE, RZ-835 A/1, GALI NO. 18 B, CGO COMPLEX-I, SADH NAGAR HAPUR CHUNGI ROAD PALAM COLONY, GHAZIABAD NEW DELHI-110045 (PAN : AAACZ2139G (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SH. VIJAY KUMAR CHADHA, SR. DR DATE OF HEARING : 11.09.2019 DATE OF ORDER : 17.09.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, INCOME TAX OFFICER, WARD-18(4), NEW DELHI (HEREINAFTER REFERRED TO AS THE REVENUE) BY FILIN G THE APPEAL ITA NO.3683 /DEL./2009 ITA NO. 3 387-3390, 3393/DEL/2012 2 BEARING ITA NO. 3683/DEL/2009 SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 18/06/2009 PASSED BY THE COMMISSIONER O F INCOME-TAX (APPEALS)-XXI, NEW DELHI QUA THE ASSESSMENT YEAR 20 06-07 AND THE APPELLANT, ASSISTANT COMMISSIONER OF INCOME-TA X, CENTRAL CIRCLE , GHAZIABAD (HEREINAFTER REFERRED TO AS THE REVENUE) BY FILING THE AFORESAID APPEALS SOUGHT TO SET ASIDE T HE IMPUGNED ORDERS DATED 14/03/2012 PASSED BY THE COMMISSIONER OF INCOME- TAX (APPEALS)-MEERUT QUA THE ASSESSMENT YEAR 2003-0 4, 2004-05, 2005-06, 2006-07 & 2009-10. 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.17/2019 DATED 8 TH AUGUST, 2019 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APP EAL IN CASE THE TAX EFFECT IS LESS THAN RS.50,00,000/- 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 THE PARTIES ON THE ISSUE IN CONTR OVERSY 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 ITA NO.3683 /DEL./2009 ITA NO. 3 387-3390, 3393/DEL/2012 3 COURT HAS BEEN REVISED AND THE RELEVANT PORTION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: SUBJECT : FURTHER ENHANCEMENT OF MONETARY LIMITS FO R FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME T AX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 -MEASURES FOR REDUC ING LITIGATION. REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF 2018 D ATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VI DE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. HI GH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPE CIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THR OUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S. NO. APPEALS/SLPS IN INCOME -TAX MATTERS MONETARY LIMIT (IN 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 HIGH ER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR 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 CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN M ORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFE CT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RE SPECT OF ITA NO.3683 /DEL./2009 ITA NO. 3 387-3390, 3393/DEL/2012 4 AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHE R, 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 RESPEC T OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CAS E WHERE A COMPOSITE ORDER/ JUDGMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARAT ELY.' 4. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENC H OF THE TRIBUNAL IN CASE OF DINESH MADHAVLAL PATEL [TS-469-ITAT- 2019(AHD)] 2019-TIOL-1556-ITAT-AHM DATED 14 TH AUGUST, 2019 HAS ALREADY DECIDED THE ISSUE AS TO THE APPLICABILI TY OF THE CAPTIONED CIRCULAR TO THE PENDING APPEALS IN AFFIRM ATIVE AND WHAT HAS BEEN DISCUSSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.50,00,000/- HENCE, THE AFORESAID APPEA LS FILED BY THE REVENUE ARE HEREBY DISMISSED HAVING BEEN BECOME INF RUCTUOUS. HOWEVER, IN CASE, THE PRESENT APPEALS ARE FOUND TO BE MAINTAINABLE AT ANY STAGE FOR ANY TECHNICAL REASONS, THE DEPARTM ENT SHALL BE AT LIBERTY TO SEEK RECALL OF THIS ORDER UNDER RELEVANT PROVISIONS OF LAW. ORDER PRONOUNCED IN OPEN COURT ON THIS 17 TH DAY OF SEPTEMBER, 2019. SD/- SD/- (R.K.PANDA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 17 TH DAY OF SEPTEMBER, 2019 ITA NO.3683 /DEL./2009 ITA NO. 3 387-3390, 3393/DEL/2012 5 BR COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXVI, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELH I. DATE OF DICTATION 11/09/2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 12/09/2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER