DCIT, New Delhi V. M/s. Paramount Biotech Industries Ltd., New Delhi

ITA 3937/DEL/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98337 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2002-2003
• Appeal Filed On: 12-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: R R MAURYA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A1 NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE : JUDICIAL MEMBER ITA NO. 3935 & 3937 /DEL/2015 ASSTT. YR: 1999-2000 & 2002-03 DCIT, CIRCLE 19(2), VS. M/S PARAMOUNT BIOTECH IND USTRIES LTD., NEW DELHI. F-7, THIRD FLOOR, EAST OF KAILASH, NEW DELHI-65. PAN: AABCP 9907 D ( APPELLANT ) (RESPONDENT) DEPARTMENT BY : SHRI RAVI JAIN CIT( DR) ASSESSEE BY : SHRI R.R. MAURYA & SHRI SANJAY KUMAR ADV. DATE OF HEARING : 28/12/2015. DATE OF ORDER : 29/12/2015. O R D E R PER S.V. MEHROTRA, A.M: THESE ARES REVENUES APPEALS AGAINST SEPARATE ORDE RS, PASSED BY THE LD. CIT(A)-7, NEW DELHI, RELATING TO A.Y. 1999-2000 & 2002-03. 2. THESE APPEALS HAVE BEEN FIXED FOR HEARING IN VIE W OF RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LACS FOR NOT FILING THE APPEAL BY REVENUE BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME-TAX ACT. 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATE D 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE ITAT WHEREIN 2 THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. F URTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOUL D APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT O F RS.10 LAKH MAY BE WITHDRAWN/NOT PRESSED. 4. LEARNED CIT-DR, SHRI RAVI JAIN, WHO APPEARED AT THE TIME OF HEARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FO R THE REPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADMI NISTRATIVE CIT FOR WITHDRAWING THE APPEALS, BECAUSE THE APPEALS WERE F ILED WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED CIT(DR) FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF THE SAID CIRCULAR, IT HAS BEEN CLARIFIED BY TH E CBDT THAT WITHDRAWAL OF THE APPEAL BY THE REVENUE ON ACCOUNT OF LOW TAX EFF ECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS O F THE ACCEPTANCE OF ISSUES INVOLVED IN THESE APPEALS AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISES BEFORE THE ITAT WHERE THE APPEAL IS AB OVE THE TAX LIMIT, AS PRESCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DEC IDED ON MERITS. 5. LD. COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPEALS OF R EVENUE. 6. AFTER CONSIDERING THE SUBMISSIONS OF LEARNED DR, THE FACTS OF THE CASE AND THE CIRCULAR OF THE CBDT, WE ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEALS AND CALLING TH E REPORT FROM THE ASSESSING OFFICER BECAUSE, APPARENTLY, THE TAX EFFE CT INVOLVED IN THE PRESENT APPEALS OF THE REVENUE IS BELOW 10 LAKHS. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FIN DS THAT THE TAX EFFECT IS ABOVE RS.10 LACS OR IN ANY OTHER MANNER, THE CIRCUL AR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE W ILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORD ER WHICH THE TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT(DR) THAT THIS ORDER WOULD NOT BE CONSID ERED AS AN ACCEPTANCE 3 BY THE REVENUE ON THE ISSUE INVOLVED IN THESE APPEA LS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOL VED IN THESE APPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN 10 LAKHS. 7. IN VIEW OF ABOVE, KEEPING IN VIEW THE ABOVE CIRC ULAR AND THE PROVISIONS OF SECTION 268A OF THE INCOME-TAX ACT, 1961 AND WIT HOUT GOING INTO MERITS OF THE CASES, WE DISMISS THE INSTANT APPEALS FILED BY THE REVENUE AS TAX EFFECT IN THESE APPEALS IS LESS THAN RS.10.00 LACS. ORDER PRONOUNCEMENT IN OPEN COURT ON 29/12/2015. SD/- SD/- (SUCHITRA KAMBLE ) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29/12/2015. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. 4