ACIT, New Delhi V. M/s. Devyani Foods Industries Pvt. Ltd., New Delhi

ITA 402/DEL/2016

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8103 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 27-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRAKASH DUBEY
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE, SHRI G.S. PANNU, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER I.T.A NO.402/DEL/2016 (ASSESSMENT YEAR 2012-13) ASST. CIT, CENTRAL CIRCLE-07, NEW DELHI. VS. M/S DEVYANI FOOD INDUSTRIES PVT. LTD. R/O F-2/7, OKHLA INDUSTRIAL AREA, PHASE-1, NEW DELHI. PAN-AABCD 7572N (APPELLANT) (RESPONDENT) APPELLANT BY SH. DIVYANSH JAIN, ADV. RESPONDENT BY SH. PRAKASH DUBEY, SR.DR DATE OF HEARING 14.01.2021 DATE OF PRONOUNCEMENT 14.01.2021 ORDER PER SUDHANSHU SRIVASTAVA, JM: THIS APPEAL IS PREFERRED BY THE REVENUE AGAIN ST ORDER DATED 18.11.2015 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-24, NEW DELHI {CIT(A)} FOR ASSESSMEN T YEAR 2012-13. 2 ITA NO.402 /DE L/2016 ACIT VS. M/S DEV YANI FOOD INDUSTRIES PVT. LTD. 2.0 THE LD. AUTHORIZED REPRESENTATIVE (AR) POINTED OUT THAT THE PRESENT APPEAL IS TO BE WITHDRAWN BY THE DEPARTME NT IN TERMS OF CIRCULAR NO.17/2019 DATED 08.08.2019 AS THE TAX EFFECT INVOLVED IS RS.50 LACS. 3.0 THE LD. DEPARTMENTAL REPRESENTATIVE (DR) SUBMI TTED THAT THE TAX EFFECT IN THE PRESENT APPEAL IS RS.50 LACS SO IT CANNOT BE SAID THAT THE TAX EFFECT IS BELOW RS.50 LACS AND, T HEREFORE, THE CIRCULAR WOULD NOT APPLY. FURTHER, THE LD. DR ALSO SUBMITTED THAT THE CIRCULAR ENHANCING THE MONETARY LIMIT FOR FILIN G OF THE DEPARTMENTAL APPEALS WAS DATED 8 TH AUGUST, 2019 AND, THEREFORE, IT WOULD APPLY TO APPEALS FILED SUBSEQUENT TO THE ISSUA NCE OF THE SAID CIRCULAR, WHEREAS THE PRESENT APPEAL OF THE DEPARTME NT WAS FILED ON 18.11.2015 WHEN THE MOMENTARY LIMIT FOR FILING THE A PPEALS BEFORE THE INCOME TAX APPELLATE TRIBUNAL WAS RS.20 LACS ONL Y. IT WAS SUBMITTED THAT, THEREFORE, THE PRESENT APPEAL OF TH E DEPARTMENT IS MAINTAINABLE AND THE SAME DOES NOT REQUIRE TO BE WI THDRAWN. 4.0 WE HAVE HEARD THE RIVAL SUBMISSIONS. THOUGH, T HE CBDT CIRCULAR DATED 8 TH AUGUST, 2019 (SUPRA) ENHANCING THE MONETARY LIMIT FOR DEPARTMENTAL APPEALS STATES THAT THE MODI FICATIONS SHALL 3 ITA NO.402 /DE L/2016 ACIT VS. M/S DEV YANI FOOD INDUSTRIES PVT. LTD. COME INTO EFFECT FROM THE DATE OF ISSUE OF THE CIRC ULAR, IT MUST ESSENTIALLY BE INTERPRETED TO MEAN THAT THE ENHANCE D LIMITS APPLY NOT ONLY TO THE NEW APPEALS TO BE FILED BUT ALSO TO APPEALS PENDING FOR DISPOSAL AS ON THE DATE OF ISSUANCE OF THE ABOV E SAID CIRCULAR. IT IS ALSO OUR CONSIDERED OPINION THAT THIS CIRCULAR H AS TO BE READ IN CONJUNCTION WITH CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 AND SUBSEQUENT AMENDMENTS THERETO. THEREFORE, PARAGRAPH NO.13 OF CIRCULAR 3/2018 (SUPRA) REMAINS OPERATIONAL WHICH ST ATES THAT THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OBJECTIO NS/REFERENCES TO BE FILED HENCEFORTH IN SUPREME COURT/HIGH COURTS / TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS /APPEALS/CROSS OBJECTIONS/ REFERENCES. THIS CIRCULAR ALSO STATES T HAT PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT MAY BE WITHDRAWN /NOT PRESSED. ACCORDINGLY, WE HOLD THAT RELAXATION IN THE MONETARY LIMIT FOR DEPARTMENTAL APPEALS VIDE CBDT CIRCULAR DATED 8 TH AUGUST, 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APP EALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. THEREFORE, WE FIND NO MERIT ON THE CONTENTION OF THE LD. SR. DR THAT THE CAPTIONED DEPARTMENTAL APPEAL IS MAINTAINABLE. WE ALSO DO NOT AGREE WITH T HE CONTENTION OF 4 ITA NO.402 /DE L/2016 ACIT VS. M/S DEV YANI FOOD INDUSTRIES PVT. LTD. THE LD. DR THAT SINCE THE TAX EFFECT IN THE CAPTION ED APPEAL IS RS. 50 LACS, THE SAME NOT BEING LESS THAN RS. 50 LACS, THE APPEAL IS MAINTAINABLE FOR THE REASON THAT THE CIRCULAR STATE S THAT THE DEPARTMENT SHOULD NOT FILE APPEALS BEFORE THE TRIBU NAL IF THE TAX EFFECT DOES NOT EXCEED RS. 50 LACS. ADMITTEDLY, THE TAX EFFECT IN THE CAPTIONED APPEAL DOES NOT EXCEED RS.50 LACS AND, TH EREFORE, THIS CONTENTION OF THE LD. DR ALSO FAILS. ACCORDINGLY, WE DEEM IT FIT TO DISMISS THE CAPTIONED APPEAL. 5.0 BEFORE PARTING, WE CLARIFY HERE THAT TH E REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RE-INSTITUT ION OF APPEAL, IF THE REQUISITE MATERIAL IS BROUGHT TO SHOW THAT THE APPEA L IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA-10 OF THE CIRCULA R DATED 11.07.2018. 6.0 IN THE FINAL RESULT, THE APPEAL OF T HE REVENUE STANDS DISMISSED. ABOVE DECISION WAS ANNOUNCED ON CONCLUSION OF VIRTUAL HEARING ON 14 TH JANUARY, 2021. SD/- SD/- (G.S.PANNU) (SUDHANSHU SRIVASTAVA) VICE PRESIDENT JUDICIAL MEMBER DATED:14/01/2021 PK/PS 5 ITA NO.402 /DE L/2016 ACIT VS. M/S DEV YANI FOOD INDUSTRIES PVT. LTD. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI