DCIT, New Delhi V. M/s Futurz Next Services (P) Ltd., New Delhi

ITA 3555/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5077 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 15-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO. 3555/DEL/2016 ASSESSMENT YEAR: 2010-11 DCIT, CENTRAL CIRCLE-29, NEW DELHI ROOM NO. 318, 3 RD FLOOR, ARA CENTRE, JHANDEWALAN EXTN., NEW DELHI VS. M/S FUTURZ NEXT SERVICES LTD., FA-45, SHIVAJI ENCLAVE, NEW DELHI (PAN: AABCJ7692K) (APPELLANT) (RESPONDENT) ORDER PER H.S. SIDHU, J.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 17.3.2016 PASSED BY THE LD. CIT(A)-30, NEW DELHI IN RELATION TO ASSESSMENT YEAR 2010-11. 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASS ESSEE HAS FILED A COPY OF COMPUTATION OF TAX EFFECT SHOWING TOTAL TAX EFFECT INVOLVED IN THE PRESENT CASE IS RS. 41,44,821/- MEANING THEREBY THA T THE TAX EFFECT IN THE DEPARTMENTAL APPEAL IS LESS THAN RS.50 LAKHS, HENCE , HE REQUESTED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN VIEW OF LATEST CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 WHEREIN THE MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE APPELLATE TRIBUNAL BY THE DEPARTMENT HAVE BEEN ENHANCED TO RS.50 LAKHS. 3. IT IS NOTED THAT VIDE CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 ISSUED BY CBDT UNDER SECTION 268A OF THE I.T. ACT, IT HAS BEEN DIRECTED THAT THE DEPARTMENT SHALL NOT FILE APPEAL BEFORE THE TRIBUNA L IN CASE WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20 LAKHS. IT WAS ALSO DIRECTED THAT THIS INSTRUCTION WILL APPLY RETROSPEC TIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN THE TRIBUNAL AND THE PENDING APPEALS DEPARTMENT BY SHRI SANJAY GOYAL, CIT(DR) ASSESSEE BY SH. VED JAIN, ADV. 2 BELOW THE SPECIFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED BY THE DEPARTMENT. RECENTLY, THE CBDT VIDE ITS CIRCULAR NO .17/2019 DATED 08.08.2019 AMENDED ITS EARLIER CIRCULAR NO.3/2018 D ATED 11.7.2018 (SUPRA) WHEREBY IT HAS BEEN DIRECTED THAT MONETARY LIMIT FOR FILING THE DEPARTMENTAL APPEAL IN INCOME TAX CASES MAY BE ENHA NCED FURTHER THROUGH THIS AMENDMENT IN PARA-3 OF THE CIRCULAR ME NTIONED ABOVE AND ACCORDINGLY, THE MONETARY LIMIT FOR FILING THE APPE AL BEFORE THE APPELLATE TRIBUNAL HAVE BEEN ENHANCED TO RS.50 LAKHS. SINCE C IRCULAR NO.17/2019 DATED 08.08.2019 HAVE BEEN ISSUED TO AMEND ITS EARL IER CIRCULAR NO.3/2018 DATED 11.7.2018 (SUPRA), THEREFORE, ALL T HE CONDITIONS OF EARLIER CIRCULAR NO.3/2018 DATED 11.7.2018 SHALL APPLY ACCO RDINGLY. THIS VIEW IS SUPPORTED BY THE ITAT, AHEMEDABAD A BENCH DECISIO N DATED 14 TH AUGUST, 2019 PASSED IN THE CASE OF INCOME TAX OFFIC ER, WARD 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS PASSED IN ITA NO. 1398/AHD/2004 (AY 1998-99). 4. LD. CIT(DR) DID NOT CONTROVERT THE AFORESAID PRO POSITION. 5. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES A S EXPLAINED ABOVE AND IN VIEW OF THE AFORESAID CBDT CIRCULARS AS WELL AS DECISION DATED 14 TH AUGUST, 2019 OF THE ITAT, AHEMEDABAD A BENCH PA SSED IN THE CASE OF INCOME TAX OFFICER, WARD 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS PASSED IN ITA NO. 1398/AHD/2004 (AY 199 8-99), THE APPEAL OF THE DEPARTMENT IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMEN T IS DISMISSED. THE DECISION IS PRONOUNCED ON 19.08.2019 SD/- SD/- (ANADEE NATH MISSHRA) (H.S. S IDHU) ACCOUNTANT MEMBER JUDICI AL MEMBER DATED: 19.08.2019 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI 3