ADIT, New Delhi V. M/s. Discovery Asia Inc., USA

ITA 3411/DEL/2014

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4455 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 08-06-2017
• Assessment Year: 2003-2004
• Appeal Filed On: 03-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Assessee Lawyers: AMAN KUMAR; ASKHAY DOSHI
• Keywords: Retrospective amendment; Tax effect

Judgement Text

1 ITA NO. 3411/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 3411/DEL/20 14 (A.Y 2003-04) ADIT CIRCLE-1(2) INTERNATIONAL TAX NEW DELHI (APPELLANT) VS DISCOVERY ASIA INC. (NOW KNOWN AS DISCOVERY ASIA LLC) ONE DISCOVERY PLACE SILVER SPRING, MD USA AABCD4333P (RESPONDENT) APPELLANT BY MS. ASHIMA NEB, SR. DR. RESPONDENT BY SH. ASKHAY DOSHI, CA & SH. AMAN KUMAR, CA ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE IS PREFERRED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS]-XXIX, NEW DEL HI, DATED 11/3/2014 FOR ASSESSMENT YEAR 2003-04. 2. IT WAS SEEN THAT TAX EFFECT OF THE APPEAL FILED BY THE REVENUE IS BELOW RS.20,00,000/-. THEREFORE, THE LD. DR WAS ASKED AS TO WHY THE APPEAL FILED BY THE REVENUE SHOULD NOT BE DISMISSED DUE TO LOW TAX EFFECT IN THE LIGHT OF THE RECENT CBDT CIRCULAR NO.03/2018 DATED 11 TH JULY, 2018. 3. WE HAVE HEARD THE PARTIES. IT IS FOUND THAT PURS UANT TO THE MANDATE OF SECTION 268A, THE CBDT HAS ISSUED CIRCULAR NO. 0 3 OF 2018, DATED 11TH DATE OF HEARING 18.02.2019 DATE OF PRONOUNCEMENT 18.02.2019 2 ITA NO. 3411/DEL/2014 JULY, 2018 WITH RETROSPECTIVE EFFECT, REVISING THE MONETARY LIMIT TO RS.20,00,000/- FOR NOT FILING APPEALS BEFORE THE TR IBUNAL. IT IS FURTHER FOUND THAT AS THE TAX EFFECT INVOLVED IN THE INSTANT APPE AL IS LESS THAN RS.20,00,000/-, THE EXTANT APPEAL IS NOT MAINTAINAB LE. THE LD. DR, ALTHOUGH SUPPORTED THE ORDERS OF THE ASSESSING OFFI CER, BUT COULD NOT CONTROVERT THE FACT THAT TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.20,00,000/-. 4. GOING BY THE PRESCRIPTION OF THE ABOVE STATED CI RCULAR, IT IS OBSERVED THAT THE INSTRUCTION IS APPLICABLE TO THE PENDING APPEALS ALSO WITH RETROSPECTIVE EFFECT AND THERE IS A CLEAR-CUT DIREC TION TO THE DEPARTMENT TO WITHDRAW OR NOT PRESS SUCH APPEALS FILED BEFORE THE ITAT, WHEREIN TAX EFFECT IS LESS THAN RS.20,00,000/-. WE ARE, THEREFORE, OF THE VIEW THAT THE REVENUE SHOULD HAVE EITHER NOT FILED THE INSTANT APPEAL BEF ORE THE TRIBUNAL OR WITHDRAWN THE SAME AS THE TAX EFFECT IN THIS APPEAL IS ADMITTEDLY LESS THAN THE PRESCRIBED LIMIT, I.E., RS. 20,00,000/- FOR NOT FIL ING THE APPEAL. ACCORDINGLY, WE DISMISSED THE INSTANT APPEAL WITHOUT GOING INTO MER ITS OF THE CASES. 5. THE LD. DR HAS BROUGHT TO OUR NOTICE A LETTE R DATED 20.08.2018 OF THE DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL TH E PRINCIPAL CCITS IN WHICH PARA NO. 10 OF THE EARLIER CIRCULAR DATED 11.7.2018 , ENUMERATING CERTAIN INSTANCES IN WHICH THE APPEALS SHOULD BE CONTESTED NOTWITHSTANDING THE LOW TAX EFFECT, HAS BEEN REVISED. HE, HOWEVER, COULD N OT PLACE ANY MATERIAL ON RECORD TO DEMONSTRATE THAT THE ABOVE APPEAL IS COVE RED BY THE AMENDED PARA OF THE CIRCULAR. UNDER THESE CIRCUMSTANCES, WE DISMISS ED THE APPEAL FILED BY THE REVENUE AND GIVE LIBERTY TO THE DEPARTMENT TO FILE MISCELLANEOUS APPLICATIONS, IF IT IS FOUND THAT EITHER THE TAX EFFECT IS MORE T HAN THE PRESCRIBED LIMIT OF RS.20,00,000/- OR THE APPEAL GETS COVERED IN THE RE VISED PARA 10 OF THE LETTER DATED 20.08.2018. ACCORDINGLY, THE APPEAL OF THE R EVENUE STAND DISMISSED. 3 ITA NO. 3411/DEL/2014 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH FEBRUARY, 2019 . SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 18/02/2019 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 3411/DEL/2014 DATE OF DICTATION 18.02.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.02.2019 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 18.02.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 18.02.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 18.02.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK