DCIT, Faridabad V. M/s Knorr Bremse System (CV) India Pvt. Ltd., Faridabad

ITA 4532/DEL/2009

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6537 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 08-03-2017
• Assessment Year: 2002-2003
• Appeal Filed On: 01-12-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: UMESH CHAND DUBEY
• Keywords: Retrospective amendment; Tax effect; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SH. S. V. MEHROTRA, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER I.T.A. NO. 4531/DEL/2009 (ASSESSMENT YEAR 2001-02) & I.T.A. NO. 4532/DEL/2009 (ASSESSMENT YEAR 2002-03) APPELLANT BY : SH. UMESH CHAND DUBEY, SR. DR RESPONDENT BY : SH. VED JAIN, ADVOCATE. DATE OF HEARING : 08.03.2017 DATE OF PRONOUNCEMENT : 16.03.2017 ORDER PER BENCH: 1. THE APPELLANT (HEREINAFTER REFERRED TO AS 'THE REVE NUE') BY FILING AFORESAID APPEALS, SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 23.10.2009 PASSED BY LD. CIT(A), FARIDABAD, QUA TH E ASSESSMENT YEAR 2001-02 AND 2002-03. DCIT CIRCLE I, BLOCK-I-B CGO COMPLEX, NH-IV FARIDABAD VS. KNORR BREMSE SYSTEM (CV) INDIA PVT. LTD. (NOW KNOWN AS KNORR BREMSE INDIA PVT. LTD.) 14/6, MATHURA ROAD, FARIDABAD GIR/PAN: AAACK0303R (APPELLANT) (RESPONDENT) 2 ITA NO. 4531 & 4532/DEL/2009 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE REVEN UE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFFECT AS PER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER 2015 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX E FFECT IS LESS THAN RS.10,00,000/- AND THIS FACTUAL POSITION HAS BEEN F AIRLY CONCEDED BY THE LD. D.R. AT THE OUTSET LD. AR HAS SUBMITTED TAX EFF ECT CALCULATION FOR BOTH THE YEARS UNDER CONSIDERATION WHICH HAS BEEN R EPRODUCED AS UNDER: KNORR BREMSE SYSTEM (CV) INDIA P LTD AY 2001-02 AND AY 2002-03 ITA NO. 4531,4532/DEL/2009 TAX EFFECT CALCULATION 2001-02 2002-03 RELIEF GRANTED BY CIT(A) RS.1805567 RS.13396115 (CIT(A) ORDER PG.23 PARA 11) (GR.3) (GR.3) TAX RATE 35% 35% TAX RS.631948 RS.468865 SURCHARGE 13% 2% SURCHARGE 82153 9377 TOTAL 714101 478242 3. ON PERUSAL OF MATERIAL ON RECORD, CBDT CIRCULAR (SUPRA) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY DEPARTMENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BE EN REVISED AND THE RELEVANT PORTION OF THE AFORESAID CIRCULAR IS EXTRA CTED AS UNDER: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S.NO. APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 10,00,000 2 BEFORE HIGH COURT 20,00,000 3 BEFORE SUPREME COURT 25,00,000 3 ITA NO. 4531 & 4532/DEL/2009 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PR ESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 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 P ARA 3 ABOVE MAY BE WITHDRAWN / NOT PRESSED. APPEALS BEFORE THE SUPR EME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OP ERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. ' 4. IN VIEW OF THE CBDT CIRCULAR NO.21, DATED 10.12.20 15 HAVING RETROSPECTIVE EFFECT AND WHAT HAS BEEN DISCUSSED AB OVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MA INTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.10,00,000/- HENCE, THE AFORESAID APPEAL FILED BY REVENUE IS HEREBY DISMISSED HAVING BEEN BE COME INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH MARCH, 2017. SD/- SD/- (S. V.MEHROTRA) (BEENA A. PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 16.03.2017 @MIT.