Appeal details
Counselvise Citation
[2019] 116 COUNSELVISE.COM (IT) 0319 (ITAT-ALLAHABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 year(s) 11 month(s) 15 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
29-08-2019
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Assessment Year
2010-2011
Appeal Filed On
14-09-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL VARANASI CIRCUIT BENCH, VARANASI BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND T. S. KAPOOR, ACCOUNTANT MEMBER SR. NO. APPEAL NO. ASSTT. YEAR APPELLANT RESPONDENT ASSESSEE BY 1 ITA NO. 164/A/2011 2005-2006 A.C.I.T., C.C., VARANASI SHRI LALIT KUMAR BARNWAL, C/O M/S PEE WOOLEN MILLS, MAIN ROAD, BHADOHI. PAN - ACEPB0726A SHRI A. K. THUKRAL, CA 2.. ITA NO. 139/A/2012 2009-2010 I.T.O., WARD - 2(3), VARANASI M/S AMRISH KUMAR GUPTA, ARUN KUMAR GUPTA & AMBUJ KUMAR GUPTA, N-1/60, NAGWA, LANKA, VARANASI. PAN AAOFA7702K SHRI APRAMEYA M. GABHAWALA, CA 3 CO NO. 02/VNS/2018 (IN ITA NO. 139/A/2012) M/S AMRISH KUMAR GUPTA, ARUN KUMAR GUPTA & AMBUJ KUMAR GUPTA, N- 1/60, NAGWA, LANKA, VARANASI. PAN AAOFA7702K I.T.O., WARD - 2(3), VARANASI 4 ITA NO. 398/A/2012 2010-2011 A.C.I.T., C.C., VARANASI M/S SUVIDHA HI-TECH DIAGNOSTIC CENTRE PVT. LTD., D-27/90, GROUND FLOOR, SHAKAMBARI COMPLEX, DURGAKUND ROAD, VARANASI. PAN AAFCS9476A SHRI SATYAM AGRAWAL, CA 5 ITA NO. 410/A/2012 2008-2009 A.C.I.T., C.C., VARANASI M/S BABYLON GREEN ESTATE PVT. LTD., D-27/90, GROUND FLOOR, SHAKAMBARI COMPLEX, BHELUPURA, VARANASI. PAN AACCB4353N SHRI SATYAM AGRAWAL, CA 6 ITA NO. 426/A/2012 2010-2011 A.C.I.T., C.C., VARANASI M/S SHUBH REALTORS, D-27/90, GROUND FLOOR, SHAKAMBARI COMPLEX, VARANASI. PAN ABKFS0184Q SHRI SATYAM AGRAWAL, CA 7 ITA NO. 601/A/2014 2009-2010 J.C.I.T., RANGE 01, GORAKHPUR M/S ANNAPURNA PLASTIC PRODUCTS PVT. LTD., LAL DIGGI CHOWK, GORAKHPUR. PAN AAFCA0541C NONE 8 ITA NO. 11/A/2015 2009-2010 I.T.O., WARD 1(4), GORAKHPUR SHRI RAJENDRA KUMAR TRIPATHI, PHARENDA ROAD, IN FRONT OF BLOCK, MAHARAJGANJ. PAN ADRPT2450P SHRI SATYAM AGRAWAL, CA FOR SHRI ASHISH BANSAL, ADVOCATE 9 CO NO. 15/A/2015 (IN SHRI RAJENDRA KUMAR TRIPATHI, I.T.O., WARD 1(4), GORAKHPUR ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 2 OF 13 ITA NO. 14/A/2015) PHARENDA ROAD, IN FRONT OF BLOCK, MAHARAJGANJ. PAN ADRPT2450P 10 ITA NO. 104/A/2016 2011-2012 A.C.I.T., CIRCLE 3, VARANASI M/S KIRAN SOCIETY, KIRAN VILLAGE, MADHOPUR, P.O.-KURUHUAN, VARANASI. PAN AAATK6393G SHRI APRAMEYA M. GABHAWALA, CA 11 ITA NO. 114/A/2016 2012-2013 A.C.I.T., C.C., VARANASI SMT. NEETA AGRAWAL, PROP. G.N. BROTHERS, K-37/34, GOAL GHAR, VARANASI. PAN ABVPA7299R SHRI DEEPAK GUJRATI, CA 12 ITA NO. 115/A/2015 2012-2013 A.C.I.T., C.C., VARANASI M/S G. N. EXPORTS, K-37/34, GOAL GHAR, VARANASI. PAN AADFG2312E SHRI DEEPAK GUJRATI, CA 13 ITA NO. 155/A/2016 2007-2008 A.C.I.T., C.C., VARANASI SHRI VINOD KUMAR JALAN, BOARING NO. 10, INDUSTRIAL ESTATE, GORAKHPUR. PAN AAXPJ3258Q SHRI SATYAM AGRAWAL, CA FOR SHRI ASHISH BANSAL, ADVOCATE 14 ITA NO. 156/A/2016 2008-2009 A.C.I.T., C.C., VARANASI SHRI VINOD KUMAR JALAN, BOARING NO. 10, INDUSTRIAL ESTATE, GORAKHPUR. PAN AAXPJ3258Q SHRI SATYAM AGRAWAL, CA FOR SHRI ASHISH BANSAL, ADVOCATE 15 ITA NO. 229/A/2016 2012-2013 I.T.O., WARD III(4), SONEBHADRA M/S SUMAN ENGINEERING WORKS, TYPE-III-9, JME SHAKTINAGAR, SONEBHADRA. PAN AAIFM8198H SHRI ASHIM ZAFAR ADV. 16 ITA NO. 06/A/2018 2009-2010 D.C.I.T., CIRCLE 03, VARANASI M/S BANARAS HOTEL LTD., NADESAR, VARANASI. PAN AABCB2234P SHRI ASHIM ZAFAR ADV. 17 ITA NO. 07/A/2018 2010-2011 D.C.I.T., CIRCLE 03, VARANASI M/S BANARAS HOTEL LTD., NADESAR, VARANASI. PAN AABCB2234P SHRI ASHIM ZAFAR ADV. 18 ITA NO. 124/A/2017 2005-2006 A.C.I.T., RANGE 02, GORAKHPUR SHRI MANOJ KUMAR AGARWAL, PROP. M/S AGARWAL CARRIERS, PADRAUNA, KUSHINAGAR. PAN ADGPK3167M NONE 19 ITA NO. 126/A/2017 2008-2009 I.T.O., WARD 2(2), GORAKHPUR TEJ PRATAP SHAHI, HP CHILDREN ACADEMY, 09 CIVIL LINES, GORAKHPUR. PAN AISPS9022L NONE 20 ITA NO. 158/A/2017 2013-2014 I.T.O., WARD 2(2), GORAKHPUR M/S SWASTIK ASSOCIATES, GOEL HATA, DHARAMSHALA BAZAR, GORAKHPUR. PAN ABWFS6831Q SHRI P. P. AGRAWAL, ADV. 21 ITA NO. 215/A/2017 2010-2011 A.C.I.T., CIRCLE 02, GORAKHPUR M/S SRI GHANSHYAM NARAYAN MANAV KALYAN SANSTHAN, PALI, SAHJANWA, GORAKHPUR. PAN AACAS9596A SHRI S. P. SHUKLA, ADV. ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 3 OF 13 22 ITA NO. 159/A/2017 2013-2014 A.C.I.T., CIRCLE 02, GORAKHPUR M/S SRI GHANSHYAM NARAYAN MANAV KALYAN SANSTHAN, PALI, SAHJANWA, GORAKHPUR. PAN AACAS9596A SHRI S. P. SHUKLA, ADV. 23 ITA NO. 216/A/2017 2014-2015 A.C.I.T., CIRCLE 02, GORAKHPUR M/S SRI GHANSHYAM NARAYAN MANAV KALYAN SANSTHAN, PALI, SAHJANWA, GORAKHPUR. PAN AACAS9596A SHRI S. P. SHUKLA, ADV. 24 ITA NO. 167/A/2017 2011-2012 D.C.I.T., RANGE 1, GORAKHPUR M/S BUDDHA HOSPITAL PVT. LTD., PARK ROAD, GORAKHPUR. PAN AACCB2524P NONE 25 ITA NO. 218/A/2017 2014-2015 D.C.I.T., RANGE 1, GORAKHPUR SHRI MANISH KUMAR BARANWAL, PROP. M/S NEW VIVEK JEWELERS, RAPTI COMPLEX, ASURAN CHOWK, GORAKHPUR. PAN ACVPB5606Q SHRI ASHIM ZAFAR ADV. 26 ITA NO. 220/A/2017 2014-2015 A.C.I.T., RANGE 1, GORAKHPUR SHRI AWADHESH KUMAR SRIVASTAVA, 33, KASIA ROAD, BETIAHATA, GORAKHPUR. PAN AISPS9029B NONE 27 ITA NO. 285/A/2017 2013-2014 A.C.I.T., RANGE II, GORAKHPUR M/S KHALSA MINING & ENGINEERING, VILL. KHAIRAT, PO SANWREJI, KHAMPAR, DEORIA. PAN AAIFK8999A SHRI ASHIM ZAFAR, ADV. 28 ITA NO. 290/A/2017 2013-2014 I.T.O., WARD 3(4), DEORIA SMT. KIRAN SINGH, VIJAY LAXMI ENTERPRISES, KAKAWAL, DEORIA. PAN BOQPS2003N SHRI ABHISHEK AGARWAL, ADV. 29 CO NO. 01/VNS/2019 (IN ITA NO. 01/VNS/2019) SMT. KIRAN SINGH, VIJAY LAXMI ENTERPRISES, KAKAWAL, DEORIA. PAN BOQPS2003N I.T.O., WARD 3(4), DEORIA 30 ITA NO. 296/A/2017 2013-2014 A.C.I.T., CIRLE - AZAMGARH M/S LIFE LINE HOSPITAL & RESEARCH CENTRE, 496, MADHYA, AZAMGARH. PAN AADFL2597C SHRI PANKAJ CHAUBEY, CA 31 ITA NO. 04/VNS/2018 2013-2014 I.T.O., WARD 1(1), VARANASI M/S ATMA GARMENTS PVT. LTD., CK-19/17, CHOWK, VARANASI. PAN AAECA8650M SHRI ASHISH JINDAL, CA 32 ITA NO. 18/A/2018 2012-2013 I.T.O. 1, JAUNPUR M/S HELM INFRA DEVELOPERS PVT. LTD., DILJAK, GOOLARGHAT, POST VIRBHAN, JAUNPUR. PAN AACCH7133E NONE 33 ITA NO. 2012-2013 I.T.O., WARD 3(5), SRI RAGHVENDRA KUMAR SHRI ABHISHEK ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 4 OF 13 36/A/2018 DEORIA JAISWAL, LASMI NARAIN MARKET, BARHAJ GALI, STATION ROAD, DEORIA. PAN AGHPJ0827H AGARWAL, ADV. 34 ITA NO. 57/VNS/2018 2013-2014 A.C.I.T., RANGE 2, GORAKHPUR M/S PANJAB COOPERATIVE CANE DEVELOPMENT UNION LTD., RAMKOLA, KUSHINAGAR. PAN AAAAP5273F NONE 35 ITA NO. 58/VNS/2018 2012-2013 A.C.I.T., RANGE 2, GORAKHPUR M/S SAHKARI GANNA VIKAS SAMITI, KHADDA, KUSHINAGAR. PAN AACAS5492F NONE 36 ITA NO. 84/VNS/2018 2014-2015 I.T.O., WARD 2(5), BALLIA SHRI SANJAY KUMAR SINGH, S/O SHRI PRABHU NATH, BANKATTA, SUBHASH NAGAR, BALLIA, PAN CNTPS0007F SHRI J. P. SINGH, C.A 37 ITA NO. 232/A/2018 2012-2013 D.C.I.T., RANGE 02, GORAKHPUR M/S COOPERATIVE CAN DEVELOPMENT UNION LTD., CHITAUNI, KUSHINAGAR. PAN AAAAC3328G NONE 38 ITA NO. 233/A/2018 2012-2013 D.C.I.T., RANGE 02, GORAKHPUR M/S SEORAHI COOPERATIVE CAN DEVELOPMENT UNION LTD., SEORAHI, KUSHINAGAR. PAN AABAS8968D NONE 39 ITA NO. 234/A/2018 2014-2015 I.T.O. WARD 1(1), GORAKHPUR SHRI AJAY KUMAR SRIVASTAVA, PROP. M/S AJAY ENTERPRISES, NAUGARH ROAD, BANSI, SIDDHARTHA NAGAR. PAN AVFPS2797C SHRI SUBODH KUMAR SRIVASTAVA, ADV. 40 ITA NO. 07/VNS/2018 2011-2012 A.C.I.T., CIRCLE 03, VARANASI SHRI GANGA SAGAR SINGH, VILLAGE KARAMPUR AURIHAR, SAIDPUR, GAZIPUR. PAN AXWPS6480P SHRI SUBHASH CHAND, ADV. 41 ITA NO. 08/VNS/2018 2014-2015 I.T.O., WARD 3(5), GHAZIPUR SHRI CHANDAN KUMAR, C/O RAJESH GUN HOUSE, KACHEHARI ROAD, GHAZIPUR. PAN AOFPK6839Q SHRI ASHIM ZAFAR ADV. 42 ITA NO. 11/VNS/2018 2013-2014 A.C.I.T., C.C., GORAKHPUR M/S AZAM RUBBER PRODUCT LTD., AL-09, SECTOR, GIDA, GORAKHPUR PAN AAECA1870F NONE 43 CO NO. 03/VNS/2019 (IN ITA NO. 11/VNS/2018 M/S AZAM RUBBER PRODUCT LTD., AL- 09, SECTOR, GIDA, GORAKHPUR. PAN AECA1870F A.C.I.T., C.C., GORAKHPUR 44 ITA NO. 15/VNS/2018 2014-2015 I.T.O., WARD 2(1), GORAKHPUR SHRI OM PRAKASH JAISWAL, M/S JAISWAL TRADING CO., MINWA, SAHJANWA, GORAKHPUR. PAN AGWPJ7026R NONE ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 5 OF 13 45 ITA NO. 16/VNS/2018 2009-2010 I.T.O., WARD 3(4), DEORIA SHRI ANIL KUMAR JAISWAL, APSARA LODGE, STATION ROAD, DEORIA. PAN AHYPJ6545N NONE 46 ITA NO. 18/VNS/2018 2015-2016 A.C.I.T., CIRCLE - AZAMGARH SHRI MOINUDDIN KHAN, LONADEEH, PHULPUR, AZAMGARH. PAN BGKPK8619N SHRI M. L. KESARWANI, C.A. 47 ITA NO. 30/VNS/2018 2014-2015 A.C.I.T., RANGE 1, GORAKHPUR M/S PURVANCHAL CATERERS, 157 A, AWAS VIKAS COLONY, SHAHPUR, GORAKHPUR. PAN AAGFP2689E NONE 48 ITA NO. 32/VNS/2018 2011-2012 I.T.O., WARD 2(1), GORAKHPUR SHRI PARAM HANSH SINGH, M/S HITECH MEDICAL AGENCY, KALYANPUR BARHALGANJ, GORAKHPUR. PAN AGZPS5895C NONE 49 ITA NO. 36/VNS/2018 2014-2015 I.T.O., WARD 01 (2), GORAKHPUR M/S RAM HARAKH JAISWAL, WARD NO. 10, PIPRAICH, GORAKHPUR. PAN AAKFR4780Q NONE 50 ITA NO. 47/VNS/2018 2014-2015 I.T.O., WARD 02 (2), GORAKHPUR M/S SAMRIDDHI LIFE STYLE, MAYA SAHU KATRA, GOLGHAR, GORAKHPUR. PAN ACFFS5461G NONE 51 ITA NO. 105/VNS/2018 2010-2011 A.C.I.T., CIRCLE AZAMGARH. M/S ASHOK KUMAR SINGH, NIZAMABAD, AZAMGARH. PAN AAQFM2839P SHRI PRASOON GOEL AND SHRI SHIVAM GARG, CAS 52 ITA NO. 10/VNS/2019 2014-2015 I.T.O. 2 (2), GORAKHPUR SHRI SITA RAM YADAV, BILANDPUR, GORAKHPUR. PAN AAYPY6078J NONE 53 ITA NO. 24/VNS/2019 2014-2015 I.T.O. 1(1), GORAKHPUR SHRI ASHOK KUMAR VERMA, PROP. M/S J. P. JEWELERS, RAPTI COMPLEX, ASURAM CHOWK, MEDICAL COLLEGE, GORAKHPUR. PAN AAVPV0507A NONE 54 ITA NO. 41/VNS/2019 2015-2016 I.T.O., RANGE 3(1), VARANASI SHRI GANESH YADAV, BARAIPUR, CHUNAR ROAD, KANDWA, CHITAIPUR, VARANASI. PAN ADVPY9993N NONE 55 ITA NO. 108/VNS/2019 2010-2011 I.T.O., WARD 3(5), GHAZIPUR SHRI HAUSHALA PRASAD RAI, S/O RAJENDRA PRASAD RAI, CHANDRA SHEKHAR NAGAR COLONY RAUZA, GHAZIPUR. PAN AGRPR2748B SHRI ASHIM ZAFAR ADV. 56 ITA NO. 116/VNS/2019 2010-2011 I.T.O., WARD 2(3), GORAKHPUR SMT. USHA MISHRA, USHA VILLA, VIVEKANANDPURI COLONY, DAUDPUR, GORAKHPUR. PAN BBTPM8442B SHRI S. N. MANI, ADV. 57 ITA NO. 120/VNS/2019 2009-2010 A.C.I.T., CIRCLE II, VARANASI SHRI GAUTAM CHOUDHARI, D 66, CHANDRIKA NAGAR COLONY, SIGRA, VARANASI. PAN AFGPC3746Q SHRI ASHISH JINDAL, CA ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 6 OF 13 DEPARTMENT BY: SHRI ASHOK KUMAR TRIPATHI, CIT (D.R.) AND SHRI A. P. MANI, D.R. DATE OF HEARING: 29 08 2019 DATE OF PRONOUNCEMENT: 29 08 2019 O R D E R PER BENCH: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDERS BY THE COMMISSIONER OF INCOME TAX (APPEALS)/S, RELATING TO DIFFERENT ASSESSEES FOR DIFFERENT ASSESSMENT YEARS, AND IN SOME CASES THE ASSESSEES HAVE ALSO FILED CROSS OBJECTIONS (COS). 2. SECTION 268A OF THE ACT PROVIDES THAT AN APPELLATE AUTHORITY, INCLUDING THE APPELLATE TRIBUNAL, SHALL HAVE REGARD TO THE INSTRUCTIONS, DIRECTIONS, ORDERS, ETC. ISSUED BY THE CBDT (BOARD) FROM TIME TO TIME FIXING MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS BY THE REVENUE BEFORE THE DIFFERENT APPELLATE AUTHORITIES, AND WHICH SHALL, WHILE DECIDING THOSE APPEALS, HAVE REGARD TO THE SAID LIMITS. 3. SINCE THE TAX EFFECT, AS COMPUTED IN TERMS OF CIRCULAR 3 OF 2018, DATED 11/7/2018 ISSUED BY THE BOARD U/S. 119 R/W S. 268A OF THE ACT, INVOLVED IN THESE APPEALS FILED BY THE DEPARTMENT DOES NOT EXCEED RS.50 LAKHS IN EACH OF THESE APPEALS, THEY ARE NOT MAINTAINABLE IN VIEW OF CBDTS CIRCULAR NO.17/2019, DATED 8 TH AUGUST, 2019, AND ARE LIABLE TO BE DISMISSED AS SUCH. SINCE ALL THESE APPEALS ARE TO BE DISPOSED ON THE BASIS OF THE MONETARY LIMIT, AS NOW REVISED, WE HAVE DECIDED TO DISPOSE OF THEM BY PASSING A COMPOSITE ORDER. 4. THE PARTIES WERE HEARD. 5. RECENTLY, THE AHMEDABAD BENCH OF THIS TRIBUNAL HAS PASSED A COMPOSITE ORDER, DISMISSING, SIMILARLY, 628 APPEALS BY THE REVENUE AND RELATED COS BY THE ASSESSEES. THE ORDER IS INSTRUCTIVE, AND IS ACCORDINGLY REPRODUCED AS UNDER: ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 7 OF 13 THESE 628 APPEALS AND COS PERTAIN TO THE APPEALS ARE FILED BY VARIOUS ASSESSING OFFICERS, ALL THESE APPEALS CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONERS OF INCOME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS.50,00,000 IN EACH OF THESE APPEALS. THE CROSS OBJECTIONS TAKEN UP FOR HEARING ARE ONLY SUCH CROSS OBJECTIONS AS EMANATE FROM THESE APPEALS AND ARE BROADLY IN SUPPORT OF THE ORDERS PASSED BY THE COMMISSIONER (APPEALS). IN THESE CASES, IN THE LIGHT OF THE DISCUSSIONS WITH THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (GUJARAT) AND REPRESENTATIVES OF THE AHMEDABAD ITAT BAR ASSOCIATION, INDIVIDUAL NOTICES ARE DISPENSED WITH; NOTICES OF HEARING ARE GIVEN ONLY THROUGH THE NOTICE BOARD. 2. IT IS IN THIS BACKDROP THAT WE ARE PLEASED TO TAKE NOTE OF A VERY PRAGMATIC AND TAXPAYER FRIENDLY POLICY DECISION BY THE GOVERNMENT OF INDIA FOR REDUCING THE INCOME TAX LITIGATION. VIDE CBDT CIRCULAR DATED 8TH AUGUST, 2019, THE INCOME TAX DEPARTMENT HAS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECISIONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST THE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OVERALL TAX EFFECT, EXCLUDING INTEREST- EXCEPT WHEN INTEREST ITSELF IS IN DISPUTE, IS RS 50,00,000 OR LESS. WHAT IT MEANS, IN PLAIN WORDS, IS THAT WHEN A COMMISSIONER (APPEALS) GIVES THE TAXPAYER TAX RELIEF OF UPTO RS 50 LAKHS IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE COMMISSIONER (APPEALS) CANNOT BE CHALLENGED BEFORE THIS TRIBUNAL, THAT WHEN THIS TRIBUNAL GIVES THE TAXPAYER RELIEF OF UPTO RS 1 CRORE IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE TRIBUNAL CANNOT BE CHALLENGED BEFORE THE HONBLE HIGH COURT, AND THAT WHEN HONBLE HIGH COURT GIVES RELIEF OF UPTO RS 2 CRORE TO THE TAXPAYER IN AN APPEAL IN AN ASSESSMENT YEAR, THAT RELIEF CANNOT BE CHALLENGED BEFORE HONBLE SUPREME COURT. THESE MONETARY THRESHOLD LIMITS FOR FILING OF APPEALS BY THE INCOME TAX AUTHORITIES DO NOT TAKE INTO ACCOUNT INTEREST AND OTHER COROLLARIES OF THE TAX DEMANDS BEING CONFIRMED SUCH AS PENALTIES, EXCEPT WHEN A PENALTY ITSELF IS SUBJECT MATTER OF LITIGATION, AND PROSECUTIONS. THE ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 8 OF 13 ENHANCEMENT OF THESE MONETARY LIMITS IS AT AN UNPRECEDENTED SCALE. THE MONETARY LIMIT FOR APPEALS BEFORE THIS TRIBUNAL, WHICH WAS RS 3,00,000 TILL 10TH JULY 2014, HAS BEEN IN EFFECT ENHANCED TO ALMOST 1,700% IN THE LAST FIVE YEARS. THIS SUBSTANTIAL RELAXATION IS CERTAINLY A HUGE STEP WHICH SIGNIFIES TRUST REPOSED BY THE GOVERNMENT OF INDIA IN THE DECISIONS OF THE APPELLATE FORUMS, AND SUBSTANTIALLY CUTS DOWN TIME TAKEN IN THE FINALITY OF THE APPELLATE PROCESS. IT IS INDEED HEARTENING TO NOTE THAT IN ONE STROKE, THE GOVERNMENT HAS NOT ONLY PREVENTED, BUT HAS, IN EFFECT, SET THE STAGE FOR WITHDRAWAL OF THOUSANDS OF APPEALS BEFORE THIS TRIBUNAL AND BEFORE HONBLE COURTS ABOVE. IN AN ENVIRONMENT IN WHICH RETROSPECTIVITY WAS ATTACHED ONLY TO THE TAXATION AND NOT TO TAX RELIEFS OR CONCESSIONS, SUCH AN APPROACH IS A PLEASANT DEPARTURE FROM LEGACY PRACTICES. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE GENEROUS CONCESSION BY THIS BENEVOLENT CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRUCTUOUS. THERE IS, HOWEVER, A SMALL ISSUE THAT WE MUST DEAL WITH. 4. SMT APARNA AGARWAL, LEARNED DEPARTMENTAL REPRESENTATIVE, HOWEVER, HAS A POINT TO MAKE. SHE POINTS OUT THAT THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT CLEARLY RETROSPECTIVE INASMUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT (T)HE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. IT IS THUS POINTED OUT THAT THIS SENTENCE GIVES AN IMPRESSION THAT IS ONLY AFTER THE DATE OF THE SAID CIRCULAR THAT THE DEPARTMENTAL APPEALS WILL NOT BE FILED IN THE CASES WITHIN THE SPECIFIED TAX EFFECT LIMITS. WE ARE URGED TO BEAR IN MIND THE IMPACT OF THIS OBSERVATION WHILE GIVING EFFECT TO THE CIRCULAR DATED 8TH AUGUST, 2019. SHE, HOWEVER, HASTENS TO ADD THAT SHE IS YET TO HAVE ANY SPECIFIC INSTRUCTIONS ON THE ISSUE AND SHE LEAVES IT FOR THE BENCH TO TAKE THE APPROPRIATE CALL. LEARNED REPRESENTATIVES APPEARING FOR THE TAXPAYERS VEHEMENTLY OPPOSE THE SUGGESTION IMPLICIT IN HER SUBMISSIONS. ALL OF THEM ARE UNANIMOUS IN THEIR ARGUMENT THAT THE CIRCULAR MUST BE HELD TO HAVE RETROSPECTIVE APPLICATION AND MUST EQUALLY APPLY TO THE PENDING APPEALS AS WELL. SHRI J P SHAH, SENIOR ADVOCATE, POINTS OUT THAT THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR AND IT IS REQUIRED TO BE READ WITH THE OLD CIRCULAR NO. 3 OF 2018 WHICH IS WHAT IT SEEKS TO MODIFY. THIS CIRCULAR, ACCORDING TO THE LEARNED COUNSEL, ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 9 OF 13 ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. HE URGES US NOT TO READ THE CIRCULAR IN A MANNER SO AS TO NULLIFY THE UNDERLYING APPROACH AND OBJECT OF REDUCING LITIGATION. SHRI SOPARKAR, LEARNED SENIOR ADVOCATE, SUBMITS THAT ALL THAT THE PRESENT CIRCULAR DOES IS TO MODIFY THE MONETARY LIMITS AND NOTHING MORE, AND, THEREFORE, IT CANNOT BE TREATED TO FOLLOW ANY OTHER APPROACH OTHER THAN THE APPROACH FOLLOWED IN THE OLD CIRCULAR. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. SHRI TUSHAR HEMANI, LEARNED SENIOR ADVOCATE, POINTS OUT THAT THE CIRCULAR DATED 8TH AUGUST 2019 ONLY GIVES FURTHER RELIEF NOT ONLY IN TERMS OF THE MONETARY LIMITS BUT ALSO IN TERMS OF THE MANNER IN WHICH THE APPLICATION OF CIRCULAR TO ORDERS DEALING WITH MORE THAN ONE YEAR IS TO MADE. SHRI S N DIVETIA, LEARNED COUNSEL FOR THE ASSESSEE, SUBMITS THAT UNLIKE IN THE CASES OF EARLIER CBDT CIRCULARS, WHICH USED TO BE IN SUPERSESSION OF EARLIER CIRCULARS ON THE ISSUES, THE CIRCULAR DATED 8TH AUGUST 2019 ONLY MODIFIES THE EARLIER CIRCULAR WHICH, INTER ALIA, PROVIDED FOR ITS RETROSPECTIVE APPLICATION. OUR ATTENTION IS INVITED TO SOME JUDICIAL PRECEDENTS IN SUPPORT OF THE CONTENTION THAT THE BENEVOLENT CIRCULAR, SUCH AS THE ONE IN QUESTION, IS TO BE GIVEN EFFECT IN RESPECT OF THE PENDING APPEALS AS WELL. MS URVASHI SHODHAN, LEARNED COUNSEL FOR THE ASSESSEE, POINTS OUTS THAT ITS PLAINLY CONTRARY TO THE SCHEME OF THE LITIGATION POLICY OF THE GOVERNMENT OF INDIA TO GIVE THIS CIRCULAR ONLY PROSPECTIVE EFFECT. SHRI S K SADHWANI, LEARNED COUNSEL FOR THE ASSESSEE, INVITES OUR ATTENTION TO THE LETTER DATED 16TH JULY 2018 ISSUED BY MEMBER CBDT TO THE ALL THE PRINCIPAL CHIEF COMMISSIONERS OF INCOME TAX, IN THE CONTEXT OF CIRCULAR DATED 11TH JULY 2018 THAT THE PRESENT CIRCULAR SEEKS TO MODIFY, SEEKING REPORT ON WITHDRAWAL OF THE APPEALS COVERED BY THE CIRCULAR. HE THEN POINTS OUT THAT IT IS THE OLD CIRCULAR IS STILL ALIVE TODAY AND THE ONLY CHANGE IS WITH RESPECT TO THE MONETARY LIMITS. IN ALL FAIRNESS, THEREFORE, THE SAME APPROACH REGARDING WITHDRAWAL OF PENDING APPEALS MUST BE FOLLOWED FOR THIS CIRCULAR AS WELL. ON THE SAME LINES, ARGUMENTS ARE ADVANCED BY THE LEARNED REPRESENTATIVES WHICH, FOR THE SAKE OF BREVITY AND TO AVOID REPETITION, WE ARE NOT REFERRING TO IN MORE SPECIFIC DETAILS. IN BRIEF REJOINDER, LEARNED DEPARTMENTAL REPRESENTATIVE GRACIOUSLY LEAVES THE MATTER TO US. ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 10 OF 13 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVING PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HESITATION IN HOLDING THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8THAUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY. THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50,00,000 2 BEFORE HIGH COURT 1,00,00,000 3 BEFORE SUPREME COURT 2,00,00,000 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 11 OF 13 COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OBJECTIONS/ 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 PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. 8. LEARNED COMMISSIONER (DR) THEN SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBERTY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY OTHER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGARD. ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 12 OF 13 9. IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APPEALS STAND DISMISSED AS WITHDRAWN. AS THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE AND AS ALL THE RELATED CROSS-OBJECTIONS OF THE ASSESSEE ARISE ONLY AS A RESULT OF THOSE APPEALS AND MERELY SUPPORT THE ORDER OF THE CIT(A), THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. ORDERED, ACCORDINGLY. 6. IN VIEW OF THE FOREGOING, THE REVENUES APPEALS AND THE ASSESSEES COS ARE BEING DISMISSED IN LIMINE AS WITHDRAWN/NOT PRESSED. 7. IT MAY BE CLARIFIED THAT THOUGH EVERY CARE HAS BEEN TAKEN BY THE REGISTRY OF THE TRIBUNAL IN IDENTIFYING THE LISTED APPEALS, IT MAY YET BE THAT SOME ERROR IN WORKING THE TAX EFFECT MAY HAVE OCCURRED. IT MAY ALSO BE THAT AN APPEAL/S IS OTHERWISE SAVED BY THE EXCEPTIONS LISTED AT PARA 10 (SCOPE OF WHICH STANDS WIDENED VIDE AMENDMENT DATED 20/8/2018) OR PARA 11 OF THE CIRCULAR. SIMILARLY, IT MAY BE THAT A CO/S BEARS AN INDEPENDENT GROUND/S, RAISED FOR ADJUDICATION. ACCORDINGLY, LIBERTY IS HEREBY GRANTED TO THE PARTIES TO, WHERE SO, MOVE THE TRIBUNAL IN THIS REGARD, IN WHICH CASE IT SHALL, WHERE SATISFIED ON MERITS, RECALL AN APPEAL/S OR, AS THE CASE MAY BE, A CO/S, FOR BEING HEARD ON MERITS. FURTHER, THE RECALL OF AN APPEAL WOULD BE ACCOMPANIED BY THE RECALL OF THE ASSESSEES CORRESPONDING CO, IF ANY, DISMISSED ALONG WITH. NEEDLESS TO ADD, THE TRIBUNAL SHALL, WHILE DOING SO, WHICH SHALL BE PER A SPEAKING ORDER, GRANT AN OPPORTUNITY OF HEARING TO THE OTHER SIDE. 8. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AND CROSS OBJECTIONS BY THE ASSESSEES STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/08/2019. SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED:29/08/2019 JJ:2908 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT ITA NO. 164/A/2011 & 56 OTHER APPEALS AND COS PAGE 13 OF 13 3. CIT(A) 4. CIT 5. DR
