ACIT, Circle-7(1), New Delhi V. Delhi State Industrial and Infrastructure Development Corporation Ltd., New Delhi

ITA 3589/DEL/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6815 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 23-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMIT KUMAR VARMA
• Keywords: Tax effect; Tax effect
• Section: 143(3); 13

Judgement Text

ITA No.1052/Mum/2020 A.Y.2010-11 ACIT, Cir 4(2)(2) Vs. M/s Kaushal Silk Mills Pvt. Ltd. 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B, NEW DELHI BEFORE SHRI G.S PANNU, PRESIDENT AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA No.3589/Del/2019 [Assessment Year: 2012-13] ACIT, Circle 7(1), Room No. 413, C.R Building, I.P Estate, New Delhi. Vs. M/s Delhi State Industrial and Infrastructure Development, N- 36, Bombay Life Building, Connaught Circus, New Delhi -110001 PAN No. AAACD1257F Revenue Assessee Revenue by : Shri Sumit Kumar Varma, CIT D.R Assessee by : Shri. Shobhit Kansal, A.R Date of Hearing : 08/12/2021 Date of pronouncement : 08/12/2021 ORDER PER RAVISH SOOD, J.M : The present appeal filed by the revenue is directed against the order passed by the CIT(A)-3, New Delhi, dated Nil, which in turn arises from the order passed by the A.O u/s 143(3) of the Income-tax Act, 1961 (for short ‘Act’), dated 27.02.2015 for A.Y. 2012-13. 2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation. 3. CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced ITA No.1052/Mum/2020 A.Y.2010-11 ACIT, Cir 4(2)(2) Vs. M/s Kaushal Silk Mills Pvt. Ltd. 2 by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. At para 13 of the above Circular, it has been mentioned that: “13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.” 4. As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-. 5. In the instant appeal filed by the Department, the tax effect involved is below the monetary limit of Rs.50,00,000/-. The said fact as was brought to our notice by the Ld. Counsel for the assessee was confronted to the Ld. Departmental Representative (D.R), who did not controvert the aforesaid claim of the assessee’s counsel that the appeal in hand pursuant to the monetary ceiling fixed by the CBDT Circular No. 17/2019 was not maintainable. 6. With the above observations, the appeal involving tax effect of less than Rs.50,00,000/- is dismissed. Order pronounced in the open Court on 08/12/2021. Sd/- Sd/- (G.S Pannu) (Ravish Sood) PRESIDENT JUDICIAL MEMBER New Delhi; Dated: 08/12/2021 ITA No.1052/Mum/2020 A.Y.2010-11 ACIT, Cir 4(2)(2) Vs. M/s Kaushal Silk Mills Pvt. Ltd. 3 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A)- 4. CIT 5. DR, ITAT, New Delhi 6. Guard file. BY ORDER, //True Copy// (Sr. Private Secretary) ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member 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 ITA No.1052/Mum/2020 A.Y.2010-11 ACIT, Cir 4(2)(2) Vs. M/s Kaushal Silk Mills Pvt. Ltd. 4 The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order