ITO, New Delhi V. M/s. OPG Metals & Finsec Ltd., Delhi

ITA 3731/DEL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6914 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 27-07-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 08-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BARNWAL
• Assessee Lawyers: BHARTI CHAUHAN
• Keywords: Retrospective amendment; Tax effect
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SM C - 1 , NEW DELHI BEFORE SH. N. K. SAINI, A CCOUNTANT M EMBER ITA NO. 3731/DEL/2015 : ASSTT. YEAR : 2003 - 04 INCOME TAX OFFICER, WARD - 19(1 ), NEW DELHI VS M/S OP G METALS & FINSEC LTD., 5440 - BASTI HARPHOOL SINGH, SADAR THANA ROAD, DELHI - 110006 (APPELLANT) (RESPONDENT) PAN NO. A A ACO5223A ASSESSEE BY : MS. BHARTI CHAUHAN , ADV. REVENUE BY : MS. ANIMA BARNWAL , SR. DR DATE OF HEARING : 2 7 .07 .2 01 6 DATE OF PRONOUNCEMENT : 2 7 . 07 .201 6 ORDER THIS IS AN APPEAL BY THE DEPARTME NT AGAINST THE ORDER DATED 04.03 .2015 OF LD. CIT(A) - V II , DELHI. 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET S TATED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10,00,000/ - , THEREFORE, THE DEPARTMENT OUGHT NOT TO HAVE FILED THIS APPEAL IN VIEW OF THE CIRCULAR ISSUED BY THE CBDT AND THE PROVISIONS CONTAINED IN SECTION 268A OF THE INCOME TAX ACT, 1961 (HEREINA FTER TO BE REFERRED AS THE ACT). ITA NO. 3731 /DEL /201 5 OPG METALS & FINSEC LTD. 2 3. ON THE OTHER HAND, THE LD. D.R., ALTHOUGH SUPPORTED THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THIS FACT THAT TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10,00,000/ - . 4. AFTER CONSIDERING THE SUBMISSION S OF BOTH THE PARTIES AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT SECTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RETROSPECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE ACT PROVIDES THAT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO THE OTHER INCOME - TAX AUTHORITIES FIXING MONETARY LIMITS FOR NOT FILING THE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS, SAID INSTRUCTIONS/DIRECTIONS ARE BINDING ON THE INCOME TAX AUTHORITIES. 5. IT IS NOTICED THAT THE CBDT HAS ISSUE D CIRCULAR NO.21 OF 2015 DATED 10.12.2015, VIDE WHICH IT HAS REVISED THE MONETARY LIMIT TO RS.10,00,000/ - FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE SAID CIRCULAR READS AS UNDER: .. ... 3. HENCEFORTH, APPE ALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: ITA NO. 3731 /DEL /201 5 OPG METALS & FINSEC LTD. 3 S. NO APPEALS IN INCOME - TAX MATTER MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2 BEFORE HIGH COURT 20,00,000/ - 3 BEFORE S UPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SHALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX MATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF STATUTE & RULES. FURTHER , FILING OF APPEAL IN CASES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDER SECTION 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY THE LIMITS SPECIFIED IN PARA 3 A BOVE AND DECISION TO FILE APPEAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFI ED 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 WHEN SUCH APPEAL WAS FILED. 6. FROM CLAUSE 10 OF THE ABOVE SAID CIRCULAR IT IS CLEA R THAT THESE INSTRUCTIONS ARE APPLICABLE TO THE PENDING APPEALS ALSO ITA NO. 3731 /DEL /201 5 OPG METALS & FINSEC LTD. 4 AND AS PER CLAUSE 3, THERE IS CLEAR CUT INSTRUCTION TO THE DEPARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE THE ITAT WHEREIN TAX EFFECT IS LESS THAN RS.10,00,000/ - . THESE I NSTRUCTIONS ARE OPERATIVE RETROSPECTIVELY TO THE PENDING APPEALS. 7. KEEPING IN VIEW THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, I AM OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL. 8. IN VIEW OF THE ABOVE, WITHOUT GOING INTO MERITS OF THE CASE, I DISMISS THE APPEAL FILED BY THE DEPARTMENT. 9. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMISSED. ( ORDER PRON OUNCED IN THE COURT ON 2 7 /07 /2016) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 2 7 /07 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR