ACIT Circle-I, Faridabad V. MVN Infrastructure Pvt Ltd, New Delhi

ITA 4101/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1741 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 07-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIV SWAROOP SINGH SENIOR
• Keywords: Tax effect
• Section: 201; 13

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 A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI (THROUGH VIRTUAL HEARING) (THROUGH VIRTUAL HEARING) (THROUGH VIRTUAL HEARING) (THROUGH VIRTUAL HEARING) BEFORE SHRI G.S. PANNU BEFORE SHRI G.S. PANNU BEFORE SHRI G.S. PANNU BEFORE SHRI G.S. PANNU, ,, , VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI AMIT SHUKLA SHRI AMIT SHUKLA SHRI AMIT SHUKLA SHRI AMIT SHUKLA, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO. 4101/DEL/2019 4101/DEL/2019 4101/DEL/2019 4101/DEL/2019 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2012 2012 2012 2012 - -- - 13 1313 13 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME INCOME INCOME INCOME TAX, TAX, TAX, TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1, NEW CGO COMPLEX, 1, NEW CGO COMPLEX, 1, NEW CGO COMPLEX, 1, NEW CGO COMPLEX, BLOCK BLOCK BLOCK BLOCK- -- -B, NH B, NH B, NH B, NH- -- -IV, IV,IV, IV, FARIDABAD. FARIDABAD. FARIDABAD. FARIDABAD. VS. VS. VS. VS. M/S MVN INFRASTRUCTURE PVT.LTD., M/S MVN INFRASTRUCTURE PVT.LTD., M/S MVN INFRASTRUCTURE PVT.LTD., M/S MVN INFRASTRUCTURE PVT.LTD., 58A/1, FIRST FLOOR, 58A/1, FIRST FLOOR, 58A/1, FIRST FLOOR, 58A/1, FIRST FLOOR, KALU SARAI, KALU SARAI, KALU SARAI, KALU SARAI, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 016. 110 016. 110 016. 110 016. PAN : AAFCM5973N. PAN : AAFCM5973N. PAN : AAFCM5973N. PAN : AAFCM5973N. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHIV SWAROOP SINGH , SENIOR DR. RESPONDENT BY : SHRI VENK A TESH CHAURASIA, CA. DATE OF HEARING : 07.12 07.12 07.12 07.12.2020 .2020 .2020 .2020 DATE OF PRONOUNCEMENT : 07.12.2020 07.12.2020 07.12.2020 07.12.2020 ORDER ORDER ORDER ORDER PER G.S. PANNU PER G.S. PANNU PER G.S. PANNU PER G.S. PANNU, , , , VP VPVP VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 201 2-13 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), FARID ABAD DATED 27 TH FEBRUARY, 2019. 2. AT THE TIME OF HEARING BEFORE US, IT WAS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE TAX EFFECT IN THIS APP EAL BY THE REVENUE IS BELOW `50 LAKHS. THE CBDT IN ITS CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAS REVISED THE MONETARY LIMIT FOR FILIN G OF THE DEPARTMENTAL APPEALS TO THE ITAT AT `50 LAKHS. ITA-4101/DEL/2019 2 3. LEARNED SENIOR DR, ON THE OTHER HAND, SUBMITTED T HAT THE TAX EFFECT IN THIS APPEAL BY THE REVENUE IS EXACTLY `50 L AKHS. THEREFORE, IT IS NOT COVERED BY THE AFORESAID CIRCULAR OF THE CBDT. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND P ERUSED THE MATERIAL PLACED BEFORE US. IN ORDER TO DECIDE THE I SSUE, THE PHRASEOLOGY OF THE CIRCULAR NOS.3/2018 AND NO.17/2019 DATED 11 TH JULY, 2018 AND 8 TH AUGUST, 2019 RESPECTIVELY OF THE CBDT IS RELEVANT. THE RELEVANT PORTION OF THE CIRCULAR DATED 11 TH JULY, 2018 (SUPRA) IS REPRODUCED HEREUNDER :- 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASE S WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LI MITS GIVEN HEREUNDER : S.NO. APPEALS/SLPS IN INCOME - TAX MATTERS MONETARY LIMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 20,00,000 2. BEFORE HIGH COURT 50,00,000 3. BEFORE SUPREME COURT 1,00,00,000 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. (EMPHASIS BY UNDERLINING PROVIDED BY US) 5. SUBSEQUENTLY, THE CIRCULAR DATED 8 TH AUGUST, 2019 (SUPRA) HAS SOUGHT TO ENHANCE THE MONETARY LIMITS PRESCRIBED IN P ARA 3 OF CIRCULAR DATED 11 TH JULY, 2018 (SUPRA); AND, THE RELEVANT PORTION OF CI RCULAR DATED 8 TH AUGUST, 2019 (SUPRA) PRESCRIBING THE ENHANCED LIMITS R EADS AS UNDER :- 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMIT S FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURT HER ITA-4101/DEL/2019 3 THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTION ED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLL OWS: 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 6. OSTENSIBLY, THE AFORESAID CIRCULARS SEEK TO PROVIDE T HAT IN CASES WHERE THE TAX EFFECT IN APPEAL DOES NOT EXCEED `50 LAKHS, NO APPEAL SHOULD BE FILED BY THE DEPARTMENT BEFORE THE APPELLA TE TRIBUNAL. IN THE PRESENT CASE, THE TAX IN DISPUTE IS `50 LAKHS AND O BVIOUSLY, IT CANNOT BE SAID TO BE AN AMOUNT WHICH EXCEEDS THE LIMI T PRESCRIBED IN THE CIRCULAR. IN THIS VIEW OF THE MATTER, WE UPHOLD THE POINT OF VIEW CANVASSED BY THE RESPONDENT-ASSESSEE THAT THE FILING OF TH E PRESENT APPEAL BY THE REVENUE IS GOVERNED BY THE MANDATE OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 READ WITH CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018. IN VIEW THEREOF, THE CAPTIONED APPEAL OF THE REVENUE IS TREATED AS NON-MAINTAINABLE AND IS, ACCORDINGLY, DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ABOVE DECISION WAS ANNOUNCED IN THE PRESENCE OF BOTH T HE PARTIES ON CONCLUSION OF VIRTUAL HEARING ON 7 TH DECEMBER, 2020. SD/- SD/- ( (( ( AMIT SHUKLA AMIT SHUKLA AMIT SHUKLA AMIT SHUKLA ) )) ) (G.S. PANNU (G.S. PANNU (G.S. PANNU (G.S. PANNU ) )) ) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-4101/DEL/2019 4 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TA X, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -1, NEW CGO COMPLEX, 1, NEW CGO COMPLEX, 1, NEW CGO COMPLEX, 1, NEW CGO COMPLEX, BLOCK BLOCK BLOCK BLOCK- -- -B, NH B, NH B, NH B, NH- -- -IV, IV,IV, IV, FARIDABAD. FARIDABAD. FARIDABAD. FARIDABAD. 2. RESPONDENT : M/S MVN INFRASTRUCTURE PVT.LTD., M/S MVN INFRASTRUCTURE PVT.LTD., M/S MVN INFRASTRUCTURE PVT.LTD., M/S MVN INFRASTRUCTURE PVT.LTD., 58A/1, FIRST FLOOR, KALU SARAI, NEW DELHI 58A/1, FIRST FLOOR, KALU SARAI, NEW DELHI 58A/1, FIRST FLOOR, KALU SARAI, NEW DELHI 58A/1, FIRST FLOOR, KALU SARAI, NEW DELHI 110 016. 110 016. 110 016. 110 016. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR