ACIT, New Delhi V. Sh. Umesh Gupta, New Delhi

ITA 3828/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7229 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-06-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 14-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SULEKHA VERMA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D : NEW DELHI) BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.3828/DEL./2013 (ASSESSMENT YEAR : 2007-08) ACIT, CIRCLE 39 (1), VS. SHRI UMESH GUPTA, NEW DELHI. W 33, GREATER KAILASH PART I, NEW DELHI 110 048. (PAN : AAEPG4743J) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ANIL GUPTA, CA REVENUE BY : MS. SULEKHA VERMA, CIT DR DATE OF HEARING : 27.06.2016 DATE OF ORDER : 27.06.2016 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ASSISTANT COMMISSIONER OF INCOME-TA X, CIRCLE 39 (1), NEW DELHI (HEREINAFTER REFERRED TO A S THE REVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE TH E IMPUGNED ORDER DATED 04.03.2013 PASSED BY THE COMMISSIONER OF INCO ME-TAX (APPEALS)-XXVIII, NEW DELHI QUA THE ASSESSMENT YEAR 2007-08. 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFF ECT AS PER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 VIDE WHICH ITA NO.3828/DEL./2013 2 THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APP EAL IN CASE THE TAX EFFECT IS LESS THAN RS.10,00,000/- AND THIS FAC TUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. THE LD. A.R. CONTENDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE L IGHT OF CBDT CIRCULAR (SUPRA). 3. WE HAVE HEARD PARTIES ON THE ISSUE IN CONTROVER SY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIR CULAR (SUPRA) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISED AND THE RELEVANT PORTION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVE N HEREUNDER: S.NO. APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (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 MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCR IBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 AB OVE MAY BE WITHDRAWN / NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' 4. THE CONTENTION OF LD. SR. D.R. THAT SHE NEEDS S OME TIME TO PROCURE THE REPORT FROM THE ASSESSING OFFICER TO WO RK OUT THE TAX ITA NO.3828/DEL./2013 3 EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEAL IN QUESTION IS COVERED UNDER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 (SUPRA), THE REVENUE CANNOT IMPORT T HE FACTS WITHIN THE KNOWLEDGE OF THE ASSESSING OFFICER TO FU RTHER PROLONG THE MATTER. HOWEVER, IN CASE ANY FACT WHICH IS OTHE RWISE NOT ON RECORD, WARRANTS THE RESTORATION OF THE PRESENT APP EAL, THE REVENUE IS AT LIBERTY TO APPROACH THE TRIBUNAL UNDER RELEVA NT PROVISIONS OF LAW. 5. IN THE FACE OF THE FACT THAT SINCE THERE IS SUB STANTIVE ADDITION OF RS.20 LAKHS ONLY THIS CASE FALLS UNDER THE CATEG ORY OF LOW TAX EFFECT CASES AS PER CBDT CIRCULAR NO.21 DATED 10.12 .2015 HAVING RETROSPECTIVE EFFECT AND CONSEQUENTLY, WE ARE OF TH E CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MAINTAINABLE DUE TO LOW TAX EFFECT I.E. LESS THAN RS.10,00,000/- HENCE, THE SAM E IS HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 27 TH DAY OF JUNE, 2016. SD/- SD/- (N.K. SAINI) (KULDIP SING H) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 27 TH DAY OF JUNE, 2016 TS ITA NO.3828/DEL./2013 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXVIII, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.