ACIT Spl. Range-3, New Delhi V. Jasmohan Singh, Delhi

ITA 4104/DEL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1311 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 07-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Retrospective amendment; Tax effect; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH FRIDAY : NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NOS. 4104/DEL./2019 (ASSESSMENT YEAR : 2014-15) ACIT, SPL. RANGE-3, VS. JASMOHAN SINGH, NEW DELHI H.NO. 5, NEW FRIENDS COLONY WEST, DELHI 65 (PAN: AAKPS4651B) (APPELLANT) (RESPONDENT) REVENUE BY : MS. ASHIMA NEB, SR. DR ASSESSEE BY : SH. TARANDEEP SINGH, ADV. SH. ANMOL SINGH, CA O R D E R PER H.S. SIDHU, JM : THE ASSESSEE HAS PREFERRED APPLICATION FOR EARLY HE ARING IN THE MAIN APPEAL. HOWEVER, AT THE TIME OF HEARING, B OTH THE PARTIES AGREED THAT THE TAX EFFECT INVOLVED IN THESE APPEA LS IS BELOW THE PRESCRIBED LIMIT. THEREFORE, THE MAIN APPEAL MAY B E DECIDED TODAY ITSELF. ACCORDINGLY, THE APPLICATION FOR EARLY HEA RING HAS BECOME INFRUCTUOUS AND DISMISSED AS SUCH. 2. THE APPELLANT, BY FILING THE PRESENT APPEAL SOUG HT TO SET ASIDE THE IMPUGNED ORDERS PASSED BY THE COMMISSIONE R OF INCOME- TAX (APPEALS)-34, NEW DELHI QUA THE ASSESSMENT YEA R 2014-15. 2 3. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFF ECT AS PER CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.50,00,000/- AND THIS FACTUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. THE LD. A.R. CONTE NDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT CIRCULAR (SUPRA). 4. WE HAVE HEARD THE PARTIES ON THE ISSUE IN CONTR OVERSY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIR CULAR (SUPRA) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISED AND THE RELEVANT PORTION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: SUBJECT : FURTHER ENHANCEMENT OF MONETARY LIMITS FO R FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME T AX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 -MEASURES FOR REDUC ING LITIGATION. REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF 2018 D ATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VI DE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. HI GH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPE CIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THR OUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S. NO. APPEALS/SLPS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 3 1 BEFORE APPELLATE TRIBUNAL 50,00,000/- 2 BEFORE HIGH COURT 1,00,00,000/- 3 BEFOR E SUPREME COURT 2,00,00,000/- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGH ER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E 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 E FFECT 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 M ORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFE CT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RE SPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHE R, EVEN IN THE CASE OF 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 RESPEC T OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CAS E WHERE A COMPOSITE ORDER/ JUDGMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARAT ELY.' 5. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENC H OF THE TRIBUNAL IN CASE OF DINESH MADHAVLAL PATEL [TS-469-ITAT- 2019(AHD)] 2019-TIOL-1556-ITAT-AHM DATED 14 TH AUGUST, 2019 HAS ALREADY DECIDED THE ISSUE AS TO THE APPLICABILI TY OF THE CAPTIONED CIRCULAR TO THE PENDING APPEALS IN AFFIRM ATIVE AND WHAT HAS BEEN DISCUSSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MAINTAINABLE BECAUSE OF LO W TAX EFFECT I.E. LESS THAN RS.50,00,000/- HENCE, THE AFORESAID APPEA L FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEEN BECOME INFR UCTUOUS. HOWEVER, IN CASE, THE PRESENT APPEAL IS FOUND TO B E MAINTAINABLE AT 4 ANY STAGE FOR ANY TECHNICAL REASONS, THE DEPARTMENT SHALL BE AT LIBERTY TO SEEK RECALL OF THIS ORDER UNDER RELEVANT PROVISIONS OF LAW. ORDER PRONOUNCED IN OPEN COURT ON THIS 06 TH DAY OF SEPTEMBER, 2019. SD/- SD/- (O.P. KANT) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER SRB DATED THE 06 TH DAY OF SEPTEMBER, 2019 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A) 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.