ACIT, New Delhi V. M/s. Mahle Engine Components India Pvt. Ltd., New Delhi

ITA 3573/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98208 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 13-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: ASHISH CHADHA
• Keywords: Tax effect

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 NO ITA NO ITA NO ITA NO . .. . 3573 3573 3573 3573 /DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 & 09 & 09 & 09 & 200 200 200 200 9 99 9 - -- - 10 1010 10 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -50 5050 50(1), (1), (1), (1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S MAHLE ENGINE COMPONENTS M/S MAHLE ENGINE COMPONENTS M/S MAHLE ENGINE COMPONENTS M/S MAHLE ENGINE COMPONENTS INDIA PVT.LTD., INDIA PVT.LTD., INDIA PVT.LTD., INDIA PVT.LTD., 30, IIND FLOOR, NDSE 30, IIND FLOOR, NDSE 30, IIND FLOOR, NDSE 30, IIND FLOOR, NDSE- -- -1, 1,1, 1, AMRIT NAGAR, AMRIT NAGAR, AMRIT NAGAR, AMRIT NAGAR, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAACM0096K. PAN : AAACM0096K. PAN : AAACM0096K. PAN : AAACM0096K. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAVI JAIN, CIT - DR. RESPONDENT BY : S HRI ASHISH CHADHA, CA . 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 : :: :- -- - THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 9-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXX, NE W DELHI DATED 19 TH MARCH, 2014. 2. THE GROUNDS RAISED IN THIS APPEAL BY THE REVENUE AR E AGAINST THE DELETION OF PENALTY OF `3,93,686/-. THUS, APPARENTL Y, THE TAX EFFECT IS BELOW `10 LAKHS. THE CBDT IN ITS CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FIL ING OF THE DEPARTMENTAL APPEALS TO THE ITAT AT `10 LAKHS WHICH I S EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS AS UNDER:- ITA-3573/DEL/2014 2 3. HENCEFORTH, APPEAL/SLPS SHALL NOT BE FILED IN CASE S WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LI MITS 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 SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED ME RELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASE S IS TO BE DECIDED ON MERITS OF THE CASE. 3. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETARY LI MITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFERENC E, WE REPRODUCE PARAGRAPH 10 BELOW:- 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PE NDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WH EN SUCH APPEAL WAS FILED. 4. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY A PPLICABLE 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 CAL L FOR THE REPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADM INISTRATIVE CIT FOR WITHDRAWING THIS APPEAL BECAUSE THE APPEAL W AS FILED WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED CIT-DR FURT HER POINTED OUT THAT IN PARAGRAPH 7 OF THE SAID CIRCULAR, IT HAS BEEN CLARIFIED BY THE CBDT THAT WITHDRAWAL OF THIS APPEAL BY THE REVENUE O N ACCOUNT OF LOW ITA-3573/DEL/2014 3 TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEA L AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISE S BEFORE THE ITAT WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRESCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 6. LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE FACTS OF TH E ASSESSEES CASE. 7. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE SIDES, W E ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEAL AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE, APPARENTL Y, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS BELO W `10 LAKHS. HOWEVER, WE ADD HERE THAT IF ON RECEIPT OF ORDER TH E ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE `10 LAKHS OR, IN AN Y OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE, HE WILL BE AT LIBERTY TO FILE THE MISCELLANEOUS APPLICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT-DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTAN CE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS APPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN `10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DI SMISS THE APPEAL IN THE LIGHT OF THE CIRCULAR NO.21/2015 OF CBDT DAT ED 10 TH DECEMBER, 2015. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS 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. ITA-3573/DEL/2014 4 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -50 5050 50(1), NEW DELHI. (1), NEW DELHI. (1), NEW DELHI. (1), NEW DELHI. 2. RESPONDENT : M/ M/M/ M/S MAHLE ENGINE COMPONENTS INDIA PVT.LTD., S MAHLE ENGINE COMPONENTS INDIA PVT.LTD., S MAHLE ENGINE COMPONENTS INDIA PVT.LTD., S MAHLE ENGINE COMPONENTS INDIA PVT.LTD., 30, IIND FLOOR, NDSE 30, IIND FLOOR, NDSE 30, IIND FLOOR, NDSE 30, IIND FLOOR, NDSE- -- -1, AMRIT NAGAR, 1, AMRIT NAGAR, 1, AMRIT NAGAR, 1, AMRIT NAGAR, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR