ITO, New Delhi V. M/s. RRP Management Services P Ltd., New Delhi

ITA 3927/DEL/2011

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7603 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 31-05-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 25-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI SENIOR
• Assessee Lawyers: SANJAY MEHRA
• 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 F FF F : 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 SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 3927/DEL/2011 3927/DEL/2011 3927/DEL/2011 3927/DEL/2011 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2003 2003 2003 2003 - -- - 04 0404 04 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -15(1), 15(1), 15(1), 15(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S M/S M/S M/S RRP MANAGEMENT SERVICES RRP MANAGEMENT SERVICES RRP MANAGEMENT SERVICES RRP MANAGEMENT SERVICES PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 15/76, 2 15/76, 2 15/76, 2 15/76, 2 ND NDND ND FLOOR, FLOOR, FLOOR, FLOOR, OLD RAJINDER NAGAR, OLD RAJINDER NAGAR, OLD RAJINDER NAGAR, OLD RAJINDER NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 060. 110 060. 110 060. 110 060. PAN : AAACR6246A. PAN : AAACR6246A. PAN : AAACR6246A. PAN : AAACR6246A. (APPELLANT) (RESPONDENT) CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION NO NONO NO .327/DEL/2011 .327/DEL/2011 .327/DEL/2011 .327/DEL/2011 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2003 2003 2003 2003 - -- - 04 0404 04 M/S RRP MANAGEMENT M/S RRP MANAGEMENT M/S RRP MANAGEMENT M/S RRP MANAGEMENT SERVICES PVT.LTD., SERVICES PVT.LTD., SERVICES PVT.LTD., SERVICES PVT.LTD., 1 11 15/76, 2 5/76, 2 5/76, 2 5/76, 2 ND NDND ND FLOOR, FLOOR, FLOOR, FLOOR, OLD RAJINDER NAGAR, OLD RAJINDER NAGAR, OLD RAJINDER NAGAR, OLD RAJINDER NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 060. 110 060. 110 060. 110 060. PAN : AAACR6246A. PAN : AAACR6246A. PAN : AAACR6246A. PAN : AAACR6246A. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -15(1), 15(1), 15(1), 15(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI R.S. NEGI, SENIOR DR. ASSESSEE BY : SHRI SANJAY MEHRA, FCA. DATE OF HEARING : 31.05.2016 31.05.2016 31.05.2016 31.05.2016 DATE OF PRONOUNCEMENT : 09.06.2016 09.06.2016 09.06.2016 09.06.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THE APPEAL BY THE REVENUE AND THE CROSS-OBJECTION B Y THE ASSESSEE FOR THE ASSESSMENT YEAR 2003-04 ARE DIRECTED AGAIN ST THE ORDER OF LEARNED CIT(A)-XVIII, NEW DELHI DATED 19 TH MAY, 2011. ITA-3927/D/2011 & C.O.327/D/2011 2 ITA NO.3927/DEL/2011 : ITA NO.3927/DEL/2011 : ITA NO.3927/DEL/2011 : ITA NO.3927/DEL/2011 :- -- - 2. IT IS OBSERVED THAT THE TAX EFFECT INVOLVED IN THI S APPEAL BY THE REVENUE IS BELOW `10 LAKHS. THE CBDT IN ITS CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FI LING OF THE DEPARTMENTAL APPEALS TO THE ITAT AT `10 LAKHS WHI CH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS AS UNDE R:- 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. ITA-3927/D/2011 & C.O.327/D/2011 3 5. LEARNED SENIOR DR WHO APPEARED AT THE TIME OF HE ARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FOR THE REPOR T FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADMINISTRATIV E CIT FOR WITHDRAWING THIS APPEAL BECAUSE THE APPEAL WAS FILED W ITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED DR FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF THE SAID CIRCULAR, IT HAS BEEN CLARIF IED BY THE CBDT THAT WITHDRAWAL OF THIS APPEAL BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUEN T YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEAL AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISES 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 DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT BE A N ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS APPEAL B EFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN ` 10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEAL IN T HE LIGHT OF THE CIRCULAR NO.21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. ITA-3927/D/2011 & C.O.327/D/2011 4 CROSS CROSS CROSS CROSS- -- -OBJECTION NO.327/DEL/2011 : OBJECTION NO.327/DEL/2011 : OBJECTION NO.327/DEL/2011 : OBJECTION NO.327/DEL/2011 :- -- - 8. AT THE TIME OF HEARING BEFORE US, THE LEARNED COU NSEL FOR THE ASSESSEE HAS NOT PRESSED THE CROSS-OBJECTION FILED BY THE ASSE SSEE. THE SAME IS, THEREFORE, DISMISSED. 9. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS-OBJECTION OF THE ASSESSEE ARE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 09.06.2016. SD/- SD/- (CHAND (CHAND (CHAND (CHAND RA MOHAN GARG RA MOHAN GARG RA MOHAN GARG RA MOHAN GARG ) )) ) ( (( ( 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. COPY FORWARDED TO: - 1. REVENUE : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -15(1), NEW DELHI. 15(1), NEW DELHI. 15(1), NEW DELHI. 15(1), NEW DELHI. 2. ASSESSEE : M/S RRP MANAGEMENT SERVICES PVT.LTD., M/S RRP MANAGEMENT SERVICES PVT.LTD., M/S RRP MANAGEMENT SERVICES PVT.LTD., M/S RRP MANAGEMENT SERVICES PVT.LTD., 15/76, 2 15/76, 2 15/76, 2 15/76, 2 ND NDND ND FLOOR, OLD RAJINDER NAGAR, FLOOR, OLD RAJINDER NAGAR, FLOOR, OLD RAJINDER NAGAR, FLOOR, OLD RAJINDER NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 060. 110 060. 110 060. 110 060. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR