ACIT, Yamunanagar V. The Saraswati Industiral Syndicate Ltd., Yamunanagar

ITA 422/CHANDI/2002

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9971 (ITAT-CHANDIGARH)
• Duration Of Justice: 13 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 21-03-2016
• Assessment Year: 1998-1999
• Appeal Filed On: 07-06-2002
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: J K CHAUDHARY
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.RANO JAIN, ACCOUNTANT MEMBER ITA NO. 422/CHD/2002 ASSESSMENT YEAR: 1998-99 THE ACIT, VS M/S SARASWATI INDL. SYNDICATE LT D., YAMUNA NAGAR, YAMUNA NAGAR PAN: ----------- (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : SHRI J.K. CHAUDHARY DATE OF HEARING : 10.05.2016 DATE OF PRONOUNCEMENT : 10.05.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS), PANCHKULA DATED 11.03.2002 FOR ASSESSMENT YEAR 1998-99. 2. THE RECORD REVEALED, EARLIER THE DEPARTMENTAL APPEAL WAS DISPOSED OF VIDE ORDER DATED 22.05.2006 BY ITAT CHANDIGARH BENCH. THE REVENUE PREFERRED APPEA L BEFORE HON'BLE HIGH COURT. IT MAY BE STATED HERE T HAT IN THE DEPARTMENTAL APPEAL, REVENUE HAS RAISED THREE GROUNDS OF APPEAL. HOWEVER, THE REVENUE HAS PREFER RED APPEAL BEFORE HON'BLE HIGH COURT WITH REGARD TO THE ISSUE I.E. LIQUIDATED DAMAGES CLAIMED BY THE ASSESSEE AND HON'BLE HIGH COURT VIDE ORDER DATED 05.07.2013 REST ORED 2 THE MATTER TO THE FILE OF THE TRIBUNAL FOR FRESH ADJUDICATION. 3. THE LD. REPRESENTATIVES OF BOTH THE PARTIES SUBMITTED THAT THE ISSUE BEFORE THE TRIBUNAL FOR RE - CONSIDERATION AS PER DIRECTIONS OF THE HON'BLE HIGH COURT IS WITH REGARD TO DELETION OF ADDITION OF RS. 18,00 ,826/- ON ACCOUNT OF PROVISIONS MADE FOR LIQUIDATED DAMAGE S ON WHICH GROUND NO. 1 IS RAISED IN THE DEPARTMENTAL AP PEAL. 4. ACCORDING TO CIRCULAR NO. 21/2015 DATED 10.12.20 15, THE CBDT IN SUPERCESSION OF EARLIER INSTRUCTIONS HA S DIRECTED THAT DEPARTMENTS APPEALS BEFORE ITAT SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONE TARY LIMIT OF RS. 10 LACS. THE TAX WILL NOT INCLUDE ANY INTER EST THEREON. IT IS FURTHER CLARIFIED THAT IF IN THE CASE OF AN A SSESSEE, DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF DISPUTE D ISSUES EXCEEDS THE MONETARY LIMIT SO SPECIFIED. THIS INST RUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEAL S TO BE FILED HENCEFORTH BEFORE THE TRIBUNAL. THE PENDING A PPEALS BELOW THE SPECIFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED. 5. ADMITTEDLY, IN THE DEPARTMENTAL APPEAL, THE TAX EFFECT IS LESS THAN RS. 10 LACS, THEREFORE, DEPARTMENTAL A PPEAL IS NOT MAINTAINABLE. THE LD. CIT(APPEALS) DECIDED THE ISS UE IN DEPARTMENTAL APPEAL ON FACTS AND THE CASE OF THE RE VENUE 3 WOULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE AB OVE CIRCULAR. 6. IN VIEW OF THE ABOVE, LD. DR STATED THAT SINCE DEPARTMENTAL APPEAL IS FILED AGAINST THE CBDT INSTR UCTIONS, THEREFORE, HE WOULD NOT BE PRESSING DEPARTMENTAL AP PEAL. THEREFORE, THE ABOVE DEPARTMENTAL APPEAL IS DISMISS ED BEING NOT PRESSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (RANO JAIN) (BHAVNE SH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10 TH MAY, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD