ITO, Rewari V. Smt. Rakesh Devi, Uttar Pradesh

ITA 3517/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98213 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2007-2008
• Appeal Filed On: 11-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Keywords: Tax effect
• Section: 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SMT. DIVA SINGH SMT. DIVA SINGH SMT. DIVA SINGH SMT. DIVA SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA/C.O.NO. ITA/C.O.NO. ITA/C.O.NO. ITA/C.O.NO. APPELLANT APPELLANT APPELLANT APPELLANT RESPONDENT RESPONDENT RESPONDENT RESPONDENT ASSESSMENT ASSESSMENT ASSESSMENT ASSESSMENT YEAR YEAR YEAR YEAR 1948/DEL/2014 1948/DEL/2014 1948/DEL/2014 1948/DEL/2014 ITO, WARD ITO, WARD ITO, WARD ITO, WARD - -- - 6(3), 6(3), 6(3), 6(3), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. M/S MAVERICK ELECT M/S MAVERICK ELECT M/S MAVERICK ELECT M/S MAVERICK ELECT RONICS RONICS RONICS RONICS PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 555, GALI NO.7, 555, GALI NO.7, 555, GALI NO.7, 555, GALI NO.7, ADARSH MOHALLA, MAUJ PUR, ADARSH MOHALLA, MAUJ PUR, ADARSH MOHALLA, MAUJ PUR, ADARSH MOHALLA, MAUJ PUR, DELHI DELHI DELHI DELHI 110 053. 110 053. 110 053. 110 053. PAN : AAACH9596B. PAN : AAACH9596B. PAN : AAACH9596B. PAN : AAACH9596B. 2003 2003 2003 2003 - -- - 04 0404 04 2882/DEL/2014 2882/DEL/2014 2882/DEL/2014 2882/DEL/2014 ITO, ITO, ITO, ITO, WARD WARD WARD WARD- -- -23(1), 23(1), 23(1), 23(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. SHRI GOKUL CHAND, SHRI GOKUL CHAND, SHRI GOKUL CHAND, SHRI GOKUL CHAND, SHOP NO.2, SHOP NO.2, SHOP NO.2, SHOP NO.2, SANATAN DHARAM MANDIR, SANATAN DHARAM MANDIR, SANATAN DHARAM MANDIR, SANATAN DHARAM MANDIR, S SS S- -- -BLOCK, GREATER KAILASH BLOCK, GREATER KAILASH BLOCK, GREATER KAILASH BLOCK, GREATER KAILASH- -- -II, II,II, II, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 048. 110 048. 110 048. 110 048. PAN : A PAN : A PAN : A PAN : ACZPC2645L. CZPC2645L. CZPC2645L. CZPC2645L. 2008 2008 2008 2008 - -- - 09 0909 09 1944/DEL/2014 1944/DEL/2014 1944/DEL/2014 1944/DEL/2014 ACIT, ACIT, ACIT, ACIT, CIRCLE CIRCLE CIRCLE CIRCLE- -- -24(1), 24(1), 24(1), 24(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. SHRI SHASHI RAJ AHUJA, SHRI SHASHI RAJ AHUJA, SHRI SHASHI RAJ AHUJA, SHRI SHASHI RAJ AHUJA, U UU U- -- -8, GREEN PARK MAIN, 8, GREEN PARK MAIN, 8, GREEN PARK MAIN, 8, GREEN PARK MAIN, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAFPA2488K. PAN : AAFPA2488K. PAN : AAFPA2488K. PAN : AAFPA2488K. 2007 2007 2007 2007 - -- - 08 0808 08 1943/DEL/2014 1943/DEL/2014 1943/DEL/2014 1943/DEL/2014 ITO, ITO, ITO, ITO, WARD WARD WARD WARD- -- -6(4), 6(4), 6(4), 6(4), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. M/S METROPOLITAN FARMS M/S METROPOLITAN FARMS M/S METROPOLITAN FARMS M/S METROPOLITAN FARMS PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 4/2, JAIDEV PARK, 4/2, JAIDEV PARK, 4/2, JAIDEV PARK, 4/2, JAIDEV PARK, ROHTAK ROAD, ROHTAK ROAD, ROHTAK ROAD, ROHTAK ROAD, N NN NEW DELHI EW DELHI EW DELHI EW DELHI 110 026. 110 026. 110 026. 110 026. PAN : AACCM9815E. PAN : AACCM9815E. PAN : AACCM9815E. PAN : AACCM9815E. 2003 2003 2003 2003 - -- - 04 0404 04 3432/DEL/2014 3432/DEL/2014 3432/DEL/2014 3432/DEL/2014 ITO, ITO, ITO, ITO, WARD WARD WARD WARD- -- -34(1), 34(1), 34(1), 34(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. SHRI ARVIND KUMAR GOYAL, SHRI ARVIND KUMAR GOYAL, SHRI ARVIND KUMAR GOYAL, SHRI ARVIND KUMAR GOYAL, C CC C- -- -25/Z 25/Z 25/Z 25/Z- -- -3, C 3, C 3, C 3, C- -- -BLOCK, BLOCK, BLOCK, BLOCK, DILSHAD GARDEN, DILSHAD GARDEN, DILSHAD GARDEN, DILSHAD GARDEN, DELHI DELHI DELHI DELHI 110 095. 110 095. 110 095. 110 095. PAN : AGBPG6824D. PAN : AGBPG6824D. PAN : AGBPG6824D. PAN : AGBPG6824D. 2009 2009 2009 2009 - -- - 10 1010 10 6720/DEL/2014 6720/DEL/2014 6720/DEL/2014 6720/DEL/2014 & C.O.NO. & C.O.NO. & C.O.NO. & C.O.NO. 218/DEL/2015 218/DEL/2015 218/DEL/2015 218/DEL/2015 ITO, ITO, ITO, ITO, WARD WARD WARD WARD- -- -1(1), 1(1), 1(1), 1(1), DEHRADUN. DEHRADUN. DEHRADUN. DEHRADUN. SMT. ANJANA WALIA, SMT. ANJANA WALIA, SMT. ANJANA WALIA, SMT. ANJANA WALIA, 43, INDIRA NAGAR, 43, INDIRA NAGAR, 43, INDIRA NAGAR, 43, INDIRA NAGAR, DEHRADUN. DEHRADUN. DEHRADUN. DEHRADUN. PAN : AAPPU3654D. PAN : AAPPU3654D. PAN : AAPPU3654D. PAN : AAPPU3654D. 2007 2007 2007 2007 - -- - 08 0808 08 3517/DEL/2014 3517/DEL/2014 3517/DEL/2014 3517/DEL/2014 ITO, ITO, ITO, ITO, WARD WARD WARD WARD- -- -2, 2, 2, 2, REWARI. REWARI. REWARI. REWARI. SMT. RAKESH DEVI, SMT. RAKESH DEVI, SMT. RAKESH DEVI, SMT. RAKESH DEVI, W/O SHRI OM PARKASH, W/O SHRI OM PARKASH, W/O SHRI OM PARKASH, W/O SHRI OM PARKASH, VILLAGE BALIAR KALAN, VILLAGE BALIAR KALAN, VILLAGE BALIAR KALAN, VILLAGE BALIAR KALAN, DISTRICT REWARI, DISTRICT REWARI, DISTRICT REWARI, DISTRICT REWARI, HARYANA. HARYANA. HARYANA. HARYANA. PAN : BQGPD7825R. PAN : BQGPD7825R. PAN : BQGPD7825R. PAN : BQGPD7825R. 2007 2007 2007 2007 - -- - 08 0808 08 2822/DEL/2014 2822/DEL/2014 2822/DEL/2014 2822/DEL/2014 ACIT, ACIT, ACIT, ACIT, CIRCLE CIRCLE CIRCLE CIRCLE- -- -37(1) 37(1) 37(1) 37(1), ,, , NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. DR. RAM NARAYAN KALRA, DR. RAM NARAYAN KALRA, DR. RAM NARAYAN KALRA, DR. RAM NARAYAN KALRA, J JJ J- -- -1/161A, RAJOURI GARDEN, 1/161A, RAJOURI GARDEN, 1/161A, RAJOURI GARDEN, 1/161A, RAJOURI GARDEN, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 027. 110 027. 110 027. 110 027. PAN : AATPK4470H. PAN : AATPK4470H. PAN : AATPK4470H. PAN : AATPK4470H. 2009 2009 2009 2009 - -- - 10 1010 10 2 APPELLANTS BY : SHRI RAVI JAIN, CIT-DR. RESPONDENT BY : NONE. DATE OF HEARING : 17.12.2015 17.12.2015 17.12.2015 17.12.2015 DATE OF PRONOUNCEMENT : 17.12.2015 17.12.2015 17.12.2015 17.12.2015 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - ALL THESE GROUPS OF APPEALS BY THE REVENUE AND ONE CROSS- OBJECTION BY THE ASSESSEE IN THE CASE OF ITA NO.672 0/DEL/2014 WERE FIXED BECAUSE APPARENTLY, IN ALL THE CASES, THE TAX EFFECT IS BELOW `10 LAKHS. 2. THE CBDT IN ITS CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF THE DE PARTMENTAL APPEALS TO THE ITAT AT `10 LAKHS WHICH IS EVIDENT FROM PARAGRA PH 3 OF THE CIRCULAR, WHICH READS AS UNDER:- 3. HENCEFORTH, APPEAL/SLPS SHALL NOT BE FILED IN C ASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER:- S.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SU PREME 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. 3. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETARY L IMITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFEREN CE, WE REPRODUCE PARAGRAPH 10 BELOW:- 3 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIF IED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED . APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED B Y THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY APPLICABLE TO THE APPEAL UNDER CONSIDERATION BEFORE US. 5. LEARNED CIT-DR SHRI RAVI JAIN WHO APPEARED AT TH E TIME OF HEARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FOR THE REPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADMINISTRATIVE CIT FOR WITHDRAWING THESE APPEALS BECAUSE THE APPEA LS WERE FILED WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED CIT-DR FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF THE SAID CIRCULAR, IT HAS BE EN CLARIFIED BY THE CBDT THAT WITHDRAWAL OF THESE APPEALS BY THE REVENU E ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECED ENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLV ED IN THIS APPEALS AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR I SSUE ARISES BEFORE THE ITAT WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRE SCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 7. AFTER CONSIDERING THE SUBMISSIONS OF LEARNED DR, THE FACTS OF THE CASE AND THE CIRCULAR OF THE CBDT, WE ARE OF THE OP INION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEALS AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE, APPARENTLY, THE TAX EFFE CT INVOLVED IN THESE APPEALS OF THE REVENUE IS BELOW `10 LAKHS. HOWEVER , WE ADD HERE THAT IF ON RECEIPT OF ORDER THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE `10 LAKHS OR, IN ANY OTHER MANNER, THE CIRCUL AR IS NOT APPLICABLE, HE WILL BE AT LIBERTY TO FILE THE MISCELLANEOUS APP LICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT-DR THA T THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE O N THE ISSUE INVOLVED IN THESE APPEALS AND WILL NOT BE AN ESTOPP EL FOR THE REVENUE 4 TO TAKE UP THE ISSUE INVOLVED IN THESE APPEALS BEFO RE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THA N `10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEALS IN THE LIGHT OF THE CIRCULAR NO.21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. 8. IN THE RESULT, THE APPEALS OF THE REVENUE AS WEL L AS THE CROSS- OBJECTION NO.218/DEL/2015 ARE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 17.12.2015 . SD/- SD/- (DIVA SINGH (DIVA SINGH (DIVA SINGH (DIVA SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR