DCIT, C-6(1), Mohali V. M/s Punjab Hydro Power Private Limited, Noida

ITA 466/CHANDI/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1534 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 12-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Tax effect
• Section: 13; 22; 20

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH .., ! '# #$ %, & '( BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, J M ITA NO. 600/CHD/2019 ASSESSMENT YEAR : 2014-15 THE DCIT, C-1(1), CHANDIGARH M/S AMARTEX INDUSTRIES LTD. SCO 18-19, SECTOR 9-D, CHANDIGARH PAN NO: AABCA2243H APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI PARIKSHIT AGGARWAL $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 609/CHD/2019 ASSESSMENT YEAR : 2014-15 THE DCIT C-1, RISHI NAGAR, LUDHIANA, PUNJAB M/S VARDHMAN NISSHINBO GARMENTS CO. LTD., VARDHMAN PREMISES, CHANDIGARH ROAD, LUDHIANA, PUNJAB PAN NO: AACCV9943L APPELLANT RESPONDENT ITA NO. 851/CHD/2019 ASSESSMENT YEAR : 2015-16 THE DEPUTY CIT C-1, LUDHIANA, PUNJAB M/S VARDHMAN NISSHINBO GARMENTS CO. LTD., VARDHMAN PREMISES, CHANDIGARH ROAD, LUDHIANA, PUNJAB PAN NO: AACCV9943L APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : NONE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 752/CHD/2016 ASSESSMENT YEAR : 2011-12 THE ITO WARD-3, PANCHKULA, HARYANA SH. PREM CHAND, S/O SH. NANAK CHAND, VILL.RAMGARH, PANCHKULA, HARYANA PAN NO: AFJPC5189E APPELLANT RESPONDENT 2 & %)* + , / ASSESSEE BY : NONE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 610/CHD/2019 ASSESSMENT YEAR : 2013-14 THE DCIT, C - 1 AAYAKAR BHAWAN, LUDHIANA, PUNJAB M/S VARDHMAN YARNS & THREADS LTD. CHANDIGARH ROAD, LUDHIANA, PUNJAB PAN NO: AACCV2554K APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : NONE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 466/CHD/2019 ASSESSMENT YEAR : 2015-16 THE DCIT, C - 6(1) CIRCLE 6(1), MOHALI, PUNJAB M/ S PUNJAB HYDRO POWER PRIVATE LTD. SALAR MINI HYDRO POWER PROJECT, VILL- SALAR, MALERKOTLA, PUNJAB PAN NO: AACCP6806C APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 1010/CHD/2019 ASSESSMENT YEAR : 2009-10 THE ACIT, C - 2(1),SEC - 17 CHANDIGARH M/S RAINBOW DENIM LTD. VILL. CHAUNDHERI, PO- DAPPAR CHANDIGARH AMBALA HIGHWAY, LALRU MOHALI, PUNJAB PAN NO: AABCR6743F APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : NONE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 390 TO 392/CHD/2019 ASSESSMENT YEAR : 2012-13, 2012-13 & 2013-14 THE DCIT,C1(1), CHANDIGARH M/S ORBIT RESORTS (P) LTD. # 256, SECTOR 9-C, CHANDIGARH PAN NO: AAACO4024H APPELLANT RESPONDENT 3 ITA NO. 1013/CHD/2019 ASSESSMENT YEAR : 2014-15 THE DCIT,C1(1), CHANDIGARH M/S ORBIT RESORTS (P) LTD. # 256, SECTOR 9-C, CHANDIGARH PAN NO: AAACO4024H APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI VINEET KRISHAN, ADVOCATE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 531/CHD/2010 ASSESSMENT YEAR : 2005-06 THE DCIT, CIRCLE 6(1) MOHALI QUARK COMMERCE INDIA PVT. LTD. A-45, INDUSTRIAL AREA, PHASE VIII-B MOHALI PAN NO: AAECA4873E APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SH. RAMAN AGGARWAL, CA $(' + , / REVENUE BY : SHRI J.S. KEHLON, SR. DR ITA NO. 1205/CHD/2017 ASSESSMENT YEARS : 2009-10 THE ACIT, CIRCLE PATIALA M/S SINGH CONSTRUCTION COMPANY, 4028, URBAN ESTATE, PHASE-II, PATIALA PAN NO: AAWFS4870Q APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI K.P. BAJAJ, ADVOCATE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 360/CHD/2019 ASSESSMENT YEAR : 2014-15 THE DCIT, C - 5 LUDHIANA, PUNJAB M/S SATYAM AUTO COMPONENTS LTD. G.T. ROAD, HERO NAGAR LUDHIANA, PUNJAB PAN NO: AACCS2689E APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI ASHISH AGGARWAL, CA $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR 4 ITA NO. 995/CHD/2019 ASSESSMENT YEAR : 2012-13 THE ITO,W - 3(4) SEC-17, CHANDIGARH SH.RANBIR SINGH GILL (HUF) H.NO. 721/2, DERASAHIB MANIMAJRA CHANDIGARH PAN NO: AANHR1007H APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : NONE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 1006/CHD/2019 ASSESSMENT YEAR : 2015-16 THE DCIT,CC - 1 KITCHLU NAGAR, LUDHIANA, PUNJAB SH. ASHISH GARG 36-K, SARABHA NAGAR, LUDHIANA PUNJAB PAN NO: AGTPG3772A APPELLANT RESPONDENT ITA NO. 1007/CHD/2019 ASSESSMENT YEAR : 2015-16 THE DCIT,CC - 1 KITCHLU NAGAR, LUDHIANA, PUNJAB SH. PARITOSH GARG 36-K, SARABHA NAGAR, LUDHIANA PUNJAB PAN NO: ABKPG4486F APPELLANT RESPONDENT ITA NO. 1008/CHD/2019 ASSESSMENT YEAR : 2015-16 THE DCIT,CC - 1 KITCHLU NAGAR, LUDHIANA, PUNJAB SH. SMT. MEGHA GARG 36-K, SARABHA NAGAR, LUDHIANA PUNJAB PAN NO: ALMPK2107P APPELLANT RESPONDENT ITA NO. 1009/CHD/2019 ASSESSMENT YEAR : 2015-16 THE DCIT,CC - 1 KITCHLU NAGAR, LUDHIANA, PUNJAB SH. SMT. SUMAN GARG 36-K, SARABHA NAGAR, LUDHIANA PUNJAB PAN NO: ACZPG7167P APPELLANT RESPONDENT 5 & %)* + , / ASSESSEE BY : SHRI TEJ MOHAN SINGH, (PROXY COUNSEL ) $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 621/CHD/2017 ASSESSMENT YEAR : 2012-13 THE ACIT CIRCLE, SANGRUR THE MALWA GRAMIN BANK PREM BASTI ROAD, OPP. DC OFFICE SANGRUR PAN NO: AAAJM0359C APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI N.K. GARG, ADVOCATE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 1272/CHD/2018 ASSESSMENT YEAR : 2015-16 THE DCIT , C - 1(E) CR BUILDING, CHANDIGARH M/S PUNJAB MEDICAL FOUNDATI ON CHARITABLE TRUST (PMF) 6304, WARYAM NAGAR, COOL ROAD JALANDHAR, PUNJAB PAN NO: AAATP5171B APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 184/CHD/2017 ASSESSMENT YEAR : 2012-13 THE DY. CIT CENTRAL CIRCLE-III, LUDHIANA SH. VIKAS KALIA SCO-1, CITY TOWER, MODEL TOWN LUDHIANA PAN NO: ALZPK4783E APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO.. 1483/CHD/2018 ASSESSMENT YEAR : 2015-16 THE DCIT CIRCLE-1, LUDHIANA M/S VMT SPINNING COMPANY LTD. VARDHMAN PREMISES, CHANDIGARH ROAD, LUDHIANA 6 PAN NO: AABCV8087C APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : NONE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 1072/CHD/1993 ASSESSMENT YEAR : 1990-91 THE ASST. CIT CENTRAL CIRCLE, CHANDIGARH M/S S.A. BUILDERS SCO 49-50, SCO-26 CHANDIGARH PAN NO: APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : NONE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 1426/CHD/2016 ASSESSMENT YEAR : 2012-13 THE DCIT CIRCLE, MANDI, H.P. SH. RAJINDER PRASHAD KAPUR PROP M/S MANDAV AIR INDUSTRIES PLOT NO. 12, INDUSTRIAL AREA PHASE-1, SAULI- KHAD MANDI PAN NO: AKZPK1895L APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI PARIKSHIT AGGARWAL $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 1456/CHD/2016 ASSESSMENT YEAR : 2004-05 THE DY. CIT CIRCLE-5, LUDHIANA M/S SAINI MOTORS G.T. ROAD,SHERPUR CHOWK LUDHIANA PAN NO: AAXFS4336E APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NOS. 808 TO 810/CHD/2019 ASSESSMENT YEAR : 2010-11 TO 2012-13 7 THE DCIT CC-1, CHANDIGARH SH. RAMESH SINGH JHAJJ # 2355, PHASE X, MOHALI, PUNJAB PAN NO: ABSPJ5522H APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SH. PARIKSHIT AGGARWAL $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 599/CHD/2019 ASSESSMENT YEAR : 2014-15 THE DCIT, C - 1(1) CHANDIGARH M/S INTERNATIONAL FRESH FARM PRODUCTS (INDIA) LTD. H.NO. 3, SECTOR-5,CHANDIGARH PAN NO: AAAC15038D APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI PARIKSHIT AGGARWAL $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR ITA NO. 573/CHD/2019 ASSESSMENT YEAR : 2010-11 THE ITO, W - 3(3) SECTOR-17, CHANDIGARH M/S AVTAR SINGH CONSTRUCTION CO. PVT. LTD. SCO 1004-05, SECTOR-22-B CHANDIGARH PAN NO: AABCA9381L APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI PARIKSHIT AGGARWAL $(' + , / REVENUE BY : SHRI MANJIT SINGH, CITDR . '/ + *0/ DATE OF HEARING : 27/08/2019 '123 + *0/ DATE OF PRONOUNCEMENT : 04/09/2019 '4/ ORDER PER BENCH: ALL THE ABOVE APPEALS FILED BY THE DEPARTMENT ARISI NG OUT OF THE SEPARATE ORDERS PASSED BY DIFFERENT CIT(A) AS PER THE DETAIL S GIVEN BELOW: 8 SL. NO. APPEAL NUMBER & ASSESSMENT YEAR DATE OF CIT/ CIT(A) ORDER OFFICE OF CIT/ CIT(A) 1 ITA NO. 600/CHD/2019 (A.Y. 2014-15) 20/02/2019 CI T(A)-1, CHANDIGARH 2 ITA NO. 609/CHD/2019 (A.Y. 2014-15) 12/02/2019 CI T(A)-1, LUDHIANA 3 ITA NO. 851/CHD/2019 (A.Y. 2015-16) 20/03/2019 CI T(A)-1, LUDHIANA 4 ITA NO. 752/CHD/2016 (A.Y. 2011-12) 19/03/2019 C IT(A), PANCHKULA 5 ITA NO. 610/CHD/2019 (A.Y. 2013-14) 20/02/2019 C IT(A)-1, LUDHIANA 6 ITA NO. 466/CHD/2019 (A.Y. 2015-16) 30/01/2019 C IT(A)-2, CHANDIGARH 7 ITA NO. 1010/CHD/2019 (A.Y. 2009-10) 09/04/2019 CIT(A)-1, CHANDIGARH 8 ITA NO. 390 TO 392/CHD/2019 (A.Y. 2012-13, 2012- 13 & 2013-14) 11/01/2019 CIT(A)-1, CHANDIGARH 9 1013/CHD/2019 (A.Y. 2014-15) 03/04/2019 CIT(A)-1, CHANDIGARH 10 ITA NO. 531/CHD/2010 (A.Y. 2005-06) 09/02/2010 CIT(A), CHANDIGARH 11 ITA NO. 1205/CHD/2017 (A.Y. 2009-10) 05/05/2017 CIT(A), PATIALA 12 ITA NO. 360/CHD/2019 (A.Y. 2014-15) 10/01/2019 CIT(A)-2, LUDHIANA 13 ITA NO. 995/CHD/2019 (A.Y. 2012-13) 01/04/2019 C IT(A)-1, CHANDIGARH 14 ITA NO. 1006/CHD/2019 (A.Y. 2015-16) 08/05/2019 CIT(A)-5, LUDHIANA 15 ITA NO. 1007/CHD/2019 (A.Y. 2015-16) 08/05/2019 CIT(A)-5, LUDHIANA 16 ITA NO. 1008/CHD/2019 (A.Y. 2015-16) 30/04/2019 CIT(A)-5, LUDHIANA 17 ITA NO. 1009/CHD/2019 (A.Y. 2015-16) 30/04/2019 CIT(A)-5, LUDHIANA 18 ITA NO. 621/CHD/2017 (A.Y. 2012-13) 04/01/2017 CIT(A), PATIALA 19 ITA NO. 1272/CHD/2018 (A.Y. 2015-16) 26/07/2018 CIT(A)-2, JALANDHAR 20 ITA NO. 184/CHD/2017 (A.Y. 2012-13) 27/09/2016 CIT(A)-3, LUDHIANA 21 ITA NO.. 1483/CHD/2018 (A.Y. 2015-16) 28/09/201 8 CIT(A)-1, LUDHIANA 22 ITA NO. 1072/CHD/1993 (A.Y. 1990-91) 16/04/1993 CIT(A), CHANDIGARH 23 ITA NO. 1426/CHD/2016 (A.Y. 2012-13) 15/09/2016 CIT(A), PALAMPUR 24 ITA NO. 1456/CHD/2016 (A.Y. 2004-05) 21/10/2016 CIT(A)-2, LUDHIANA 25. ITA NOS. 808 TO 810/CHD/2019 (A.Y. 2010-11 TO 2012-13) 30/03/2019 CIT(A)-3, GURGAON 26. ITA NO. 599/CHD/2019 (A.Y.2014-15) 20/02/2019 C IT(A)-1, CHANDIGARH 27. ITA NO. 573/CHD/2019 (A.Y. 2010-11) 15/02/2019 CIT(A)-1, CHANDIGARH 2. DURING THE COURSE OF HEARING IT WAS A COMMON CON TENTION OF THE LD. COUNSELS PRESENT ON BEHALF OF THE DIFFERENT ASSESSE ES THAT THESE APPEALS FILED BY THE DEPARTMENT ARE NOT MAINTAINABLE IN VIEW OF THE CIRCULAR NO. 17/2019 DT. 08/08/2019 ISSUED BY CBDT WHEREIN THE MONETARY LIMI T FOR FILING THE APPEALS BY THE DEPARTMENT BEFORE THE ITAT HAS BEEN INCREASED T O RS. 50,00,000/- FROM RS. 20,00,000/-. 3. IN THE RIVAL SUBMISSIONS THE LD. CIT DR SUBMITTE D THAT THE CIRCULAR NO. 17/2019 DT. 08/08/2019 IS NOT CLEARLY RETROSPECTIVE IN AS MUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT THE SAID MODIFICATION SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. IT WAS STATED THAT THE AFORESAID SENTENCE CLEARLY GIVES AN IMPRESSION THAT THE SAID CIRCULAR IS APPLICABLE AFTER THE DATE MENTIONED THERE 9 IN AND THEREAFTER THE DEPARTMENTAL APPEALS WHICH CO ME IN THE SPECIFIED TAX EFFECT LIMIT WILL NOT BE FILED. THE LD. COUNSELS AP PEARING ON BEHALF OF THE ASSESSEES VEHEMENTLY OPPOSED THE CONTENTION OF THE LD. CIT(DR) AND THEY WERE UNANIMOUS IN THEIR ARGUMENTS THAT THE CIRCULAR MUST BE HELD TO HAVE RETROSPECTIVE APPLICATION AND MUST EQUALLY APPLY TO THE PENDING APPEALS AS WELL, SINCE THE PRESENT CIRCULAR ONLY MODIFIES THE MONETARY LIMIT EARLIER MENTIONED IN CIRCULAR NO. 3 OF 2018 DT. 11/07/2018. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE IT IS AN ADMITTED FACT THAT THE CBDT VIDE CIRCULAR NO. 17/20 19 ENHANCED THE MONETARY LIMIT TO RS. 50,00,000/- FOR NOT FILING THE APPEAL BY THE DEPARTMENT BEFORE THE ITAT, EARLIER THIS LIMIT WAS SPECIFIED AT RS. 20,00 ,000/- IN THE ORIGINAL CIRCULAR NO. 03/2018 DT. 11/07/2018. NOW VIDE THE NEW CIRCULAR N O. 17/2019 DT. 08/08/2019 THE TAX EFFECT LIMIT HAS BEEN ENHANCED AND THIS NEW CIRCULAR DT. 08/08/2019 READ AS UNDER; CIRCULAR NO. - 17 OF 2019 DATE - 8TH AUGUST 2019 FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS /APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDU CING LITIGATION. CIRCULAR NO. 3/2018 DATED 11TH JULY 2018 HAS BEEN R EPLACED BY CIRCULAR NO. 17/2019 DATED 8TH AUGUST 2019 TO ENHANCE MONETARY LIMITS FOR FILI NG OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS /APPEALS BEFORE SUPREME COURT FOR REDUCING LITIGATION. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) [PREVIOUS LIMIT) MONETARY LIMIT (RS.) (REVISED LIMIT) BEFORE APPELLATE TRIBUNAL 20,00,000 50,00,000 BEFORE HIGH COURT 50,00,000 1,00.00.000 BEFORE SUPREME COURT 1,00,00,000 2.00.00,000 THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFEC T 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 MORE THAN ONE ASSESSME NT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX E FFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT. NO APPEAL SHALL BE FILE D IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND CO MMON ISSUES IN MORE THAN ONE 10 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 LIMI T IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 5. FROM THE CONTENTS OF THE AFORESAID CIRCULAR IT I S CRYSTAL CLEAR THAT THE ANOMALY IN THE EARLIER CIRCULAR NO. 3 OF 2018 DT. 1 1/07/2018 AT PAGE 5 HAS BEEN REMOVED AND THE LIMIT SPECIFIED IN PARA 3 OF THE EA RLIER CIRCULAR HAS BEEN ENHANCED. IT IS ALSO NOT IN DISPUTE THAT THE EARLIE R CIRCULAR WAS APPLICABLE RETROSPECTIVELY TO THE PENDING APPEALS / CROSS OBJ ECTIONS AND PARA NOS. 12 & 13 OF THE ORIGINAL CIRCULAR NO. 03/2018 DT. 11/07/2018 READ AS UNDER: 12. IT IS CLARIFIED THAT THE MONETARY LIMIT OF RS. 20 L AKHS FOR FILING APPEALS BEFORE THE IT AT WOULD APPLY EQUALLY TO CROSS OBJECTIONS UNDER SECTI ON 253(4) OF THE ACT. CROSS OBJECTIONS BELOW THIS MONETARY LIMIT, ALREADY FILED, SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESSED. FILING OF CROSS OBJECTIONS BELOW THE MONET ARY LIMIT MAY NOT BE CONSIDERED HENCEFORTH. SIMILARLY, REFERENCES TO HIGH COURTS AN D SLPS/ APPEALS BEFORE SUPREME COURT BELOW THE MONETARY LIMIT OF RS. 50 LAKHS AND RS. 1 CRORE RESPECTIVELY SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESSED. REFERENCES BEF ORE HIGH COURT AND SLPS/ APPEALS BELOW THESE LIMITS MAY NOT BE CONSIDERED HENCEFORTH . 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OB JECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SCIHCS/TRIBUNAL AND IT SHALL ALSO APP LY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEA LS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 6. NOW THE CBDT SIMPLY ENHANCED THE MONITORY LIMIT AND THE DIRECTIONS GIVEN EARLIER VIDE PARA NOS. 12 & 13 OF THE CIRCULA R NO. 3 / 2018 DT. 11/07/2018 ARE STILL INTACT WHICH IS CRYSTAL CLEAR FROM THE LA NGUAGE OF THE CIRCULAR NO. 17/2019 WHEREIN IT HAS BEEN MENTIONED THAT THERE IS ENHANCE MENT OF MONETARY LIMIT AND AMENDMENT TO CIRCULAR NO. 3 /2018 FOR REDUCING THE LITIGATION. WE THEREFORE ARE OF THE CONFIRMED VIEW THAT THE AMENDED CIRCULAR NO. 17/2019 NOW ISSUED BY THE CBDT IS ALSO APPLICABLE TO THE PENDING APPEALS AS H AS BEEN SPECIFIED IN PARA 13 OF THE ORIGINAL CIRCULAR NO. 3/2018 DT. 11/07/2018 AND THAT THE DEPARTMENT OUGHT NOT HAVE FILED THE APPEALS BEFORE THE ITAT WHERE TH E TAX EFFECT IS RS. 50 LACS OR LESS. FOR THE AFORESAID VIEW WE ARE ALSO FORTIFIED BY THE DECISION DT. 14/08/2019 OF THE COORDINATE BENCH I.E; ITAT, AHMEDABAD BENCH A AHEMDABAD IN ITA NO. 1398/AHD/2004 FOR THE A.Y. 1998-99 IN THE CASE OF I TO, WARD-3(2) AHMEDABAD 11 VS. DINESH MADHAVLAL PATEL, AHMEDABAD& OTHERS WHERE IN IT HAS BEEN HELD IN PARA 5 TO 7 AS UNDER: 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVI NG PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HESITATION IN H OLDING THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEAL S TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM TH E FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APP EALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETAR Y LIMIT (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 AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDE R 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 I N THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUT ED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RE SPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED 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 SPECIFIED IN PARA 3. FURTHE R, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTH ORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE M ONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEP ARATELY' 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INT ACT INCLUDES PARAGRAPH 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SH ALL ALSO APPLY 12 RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJ ECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APP EALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. 7. IN VIEW OF THE AFORESAID DISCUSSION ALL THE ABOV E APPEALS FILED BY THE DEPARTMENT ARE DISMISSED. 8. IN THE RESULT, ALL THE ABOVE APPEALS OF THE DEPA RTMENT ARE DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 04/09/2019) SD/- SD/- #$ % .., (SANJAY GARG ) ( N.K. SAI NI) & '(/ JUDICIAL MEMBER ! / VICE PRESIDENT AG DATE: 04/09/2019 !'#$%$' COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. & '' CIT 4. & ''() THE CIT(A) 5. $*',-.,-/012 DR, ITAT, CHANDIGARH 6. 134 GUARD FILE