DCIT, New Delhi V. M/s G4S Corporate Services (India) Pvt. Ltd., New Delhi

ITA 4382/DEL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6970 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 10-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Tax effect; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C : NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4382/DEL./2016 (ASSESSMENT YEAR : 2011-12) DCIT, CIRCLE 10(1), VS. M/S G4S CORPORATE NEW DELHI SERVICES (INDIA) PVT. LTD. C-16, COMMUNITY CENTRE, JANAKPURI, BEHIND JANAK CINEMA, NEW DELHI 58 (PAN: AABCG4215D) (APPELLANT) (RESPONDENT) REVENUE BY : SH. AVIKAL MANU, SR. DR. ASSESSEE BY : MS. SOUMYA SINGH, ADV. O R D E R PER H.S. SIDHU, JM : THE APPELLANT, BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. COMMISSIONER OF IN COME-TAX (APPEALS)-16, NEW DELHI QUA THE ASSESSMENT YEAR 20 11-12. 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFFECT 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 E FFECT IS LESS THAN RS.50,00,000/- AND THIS FACTUAL POSITION HAS BEEN F AIRLY CONCEDED BY THE 2 LD. D.R. THE LD. A.R. CONTENDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT CIRCULAR (SUPRA). 3. 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 AF ORESAID CIRCULAR IS EXTRACTED AS UNDER: SUBJECT : FURTHER ENHANCEMENT OF MONETARY LIMITS FO R FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLA TE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 -MEASURES FOR REDUCING LITIGATIO N. 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. HIGH COURTS A ND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPECIFI ED. 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 FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, TH E TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S. NO. APPEALS/SLPS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 50,00,000/- 2 BEFORE HIGH COURT 1,00,00,000/- 3 BEFORE 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 HIGHER APPELLATE 3 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 CA SE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ON E ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESS MENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. FURTHER, 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 CASE WHERE A COMPOSITE ORDER/ JUDGMENT INVOLVES MORE THAN ONE ASSESSEE. EA CH ASSESSEE SHALL BE DEALT WITH SEPARATELY.' 4. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENCH 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 APPLICABILITY OF THE CAPTIONED CIRC ULAR TO THE PENDING APPEALS IN AFFIRMATIVE AND WHAT HAS BEEN DISCUSSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT M AINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.50,00,000/- HEN CE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAV ING BEEN BECOME INFRUCTUOUS. HOWEVER, IN CASE, THE PRESENT APPEAL IS FOUND TO BE MAINTAINABLE AT ANY STAGE FOR ANY TECHNICAL REASONS , THE DEPARTMENT 4 SHALL BE AT LIBERTY TO SEEK RECALL OF THIS ORDER UN DER RELEVANT PROVISIONS OF LAW. ORDER PRONOUNCED IN OPEN COURT ON THIS 22 ND DAY OF OCTOBER, 2019. SD/- SD/- (PRASHANT MAHARISHI) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER SRB DATED THE 22 ND DAY OF OCTOBER, 2019 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A) 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.