ACIT, New Delhi V. M/s Konnar Enterprises Pvt. Ltd., New Delhi

ITA 4145/DEL/2012

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7104 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-06-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 01-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Assessee Lawyers: KAPIL GOYAL
• Keywords: Retrospective amendment; Tax effect
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. SUDHANSHU SRIVASTAVA, JM IT A NO. 4145/DEL/2012 : ASSTT. YEAR : 2007 - 08 ASSTT. COMMISSION ER OF INCOME TAX, CENTRAL CIRCLE - 21 , NEW DELHI - 110055 VS M/S KONNAR ENTERPRISES PVT. LTD. RZ - 61, GALI NO. 25C, INDIRA PARK, PALAM COLONY, NEW DELHI (APPELLANT) (RESPONDENT) CO NO. 349/DEL/2012 : ASSTT. YEAR : 2007 - 08 M/S KONNAR ENTERPRISES PVT. LTD. RZ - 61, GALI NO. 25C, INDIRA PARK, PALAM COLONY, NEW DELHI VS ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 21, NEW DELHI - 110055 (APPELLANT) (RESPONDENT) PAN NO. AA CCK7558G ASSESSEE BY : SH. KAPIL GOYAL, ADV. REVENUE BY : MS. JYOTI KUMARI, CIT DR DATE OF HEARING : 02 .0 1 .201 7 DATE OF PRONOUNCE MENT : 03 .01 .201 7 ORDER PER N. K. SAINI, AM : THE A PPEAL FILE D BY THE DEPARTMENT AND CROSS O BJECTION BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 17.05.2012 OF LD. CIT(A) - II, DELHI . 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE TAX EFFECT IN THIS AP PEAL IS LESS THAN RS.10,00,000/ - , THEREFORE, THE ITA NO . 4145 /DE L/201 2 CO NO. 349/DEL/2012 KONNAR ENTERPRISES PVT. LTD. 2 DEPARTMENT OUGHT NOT TO HAVE FILED THIS APPEAL IN VIEW OF THE CIRCULAR ISSUED BY THE CBDT AND THE PROVISIONS CONTAINED IN SECTION 268A OF THE INCOME TAX ACT, 1961 (HEREINAFTER TO BE REFERRED AS THE ACT). 3 . ON THE OTHER HAND, THE LD. D.R., ALTHOUGH SUPPORTED THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THIS FACT THAT TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10,00,000/ - . 4. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND THE MATER IAL AVAILABLE ON RECORD, IT IS NOTICED THAT SECTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RETROSPECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE ACT PROVIDES THAT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO THE OTHER INCOME - TAX AUTHORITIES FIXING MONETARY LIMITS FOR NOT FILING THE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS, SAID INSTRUCTIONS/DIRECTIONS ARE BINDING ON THE INCOME TAX AUTHORITIES. 5. IT IS NOTICED THAT THE CBDT HAS ISSUED CIRCULAR NO.21 OF 2015 DATED 10.1 2.2015, VIDE WHICH IT HAS REVISED THE MONETARY LIMIT TO RS.10,00,000/ - FOR NOT FILING THE APPEAL ITA NO . 4145 /DE L/201 2 CO NO. 349/DEL/2012 KONNAR ENTERPRISES PVT. LTD. 3 BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE SAID CIRCULAR READS AS UNDER: .. ... 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CAS ES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S. NO APPEALS IN INCOME - TAX MATTER MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2 BEFORE HIGH COURT 20,00,000/ - 3 BEFORE SUPREME COURT 25,00,000/ - IT IS CL ARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SHALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX MATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF STATUTE & RULES. FURTHER, FILING OF APPEAL IN CASES OF INCO ME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDER SECTION 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY THE LIMITS SPECIFIED IN PARA 3 ABOVE AND DECISION TO FILE APPEAL I N SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR CASE. ITA NO . 4145 /DE L/201 2 CO NO. 349/DEL/2012 KONNAR ENTERPRISES PVT. LTD. 4 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 6. FROM CLAUSE 10 OF THE ABOVE SAID CIRCULAR IT IS CLEAR THAT THESE INSTRUCTIONS ARE APPLIC ABLE TO THE PENDING APPEALS ALSO AND AS PER CLAUSE 3, THERE IS CLEAR CUT INSTRUCTION TO THE DEPARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE THE ITAT WHEREIN TAX EFFECT IS LESS THAN RS.10,00,000/ - . THESE INSTRUCTIONS ARE OPERATIVE RETROSPECT IVELY TO THE PENDING APPEALS. 7. KEEPING IN VIEW THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, WE ARE OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE FILED THE INSTANT APPEAL BEFORE THE TRIB UNAL. 8 . AS REGARDS TO THE CROSS OBJECTION FIL ED BY THE ASSESSEE IS CONCERNED, S INCE WE HAVE ALREADY DISMISSED THE APPEAL OF THE REVENUE AS AFORESAID, ON ACCOUNT OF LOW TAX EFFECT . THEREFORE, THE CROSS OBJECTION FILED BY THE ASSESSEE HAS BECOME INFRUCTUO US AND DISMISSED . ITA NO . 4145 /DE L/201 2 CO NO. 349/DEL/2012 KONNAR ENTERPRISES PVT. LTD. 5 9 . IN THE RESULT, THE APPEAL OF THE DEPARTMENT AND CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ( ORDER PRON OUNCED IN THE COURT ON 03 /0 1 / 2017 ) SD/ - SD/ - (SUDHANSHU SRIVASTAVA ) (N. K. SAINI) JUDICIAL M EMBER ACCOUNTANT MEMBER DATED: 03 /01/2017 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR