ACIT, New Delhi V. M/s. Clitoria Vanjiya Pv. Ltd., Kolkata

ITA 4787/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5306 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 08-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SHARMA
• Assessee Lawyers: AKSHAT JAIN F
• Keywords: Tax effect

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, DELHI BENCH B, NEW DELHI BEFORE : SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 4787/DEL/2016 ASSESSMENT YEAR: 2013-14 ACIT, CENTRAL CIRCLE 30, NEW DELHI. (APPELLANT) VS. CLITORIA VANJIYA PVT. LTD., ROOM NO. 17, 4 TH FLOOR, 55 EZRA STREET, KOLKATA. (PAN- AADCC0223D) (RESPONDENT) REVENUE BY MS. NIDHI SHARMA, SR. DR ASSESSEE BY SH. AKSHAT JAIN, F CA ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER DATED 24.06.2016 PASSED BY LD.CIT(A)-30, NEW DELHI PERTA INING TO ASSESSMENT YEAR 2013-14. 2. LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, SUB MITTED THAT THE TAX EFFECT INVOLVED IN THE GROUNDS RAISED BY THE REVENUE IS BE LOW RS.50 LACS. REFERRING TO THE DECISION OF AHMEDABAD BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS DINESH MADHAVLAL PATEL IN ITA NO.1398/AHD/2004 VIDE ORDER DATED 14.08.2019, HE SUBMITTED THAT THE TRIBUNAL AFTER CO NSIDERING THE RECENT CBDT CIRCULAR DATED 08.08.2019, RAISING THE MONETARY LIM IT FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL TO RS.50,00,000/- HAS HELD THAT THIS CIRCULAR DATE OF HEARING 21.08.2019 DATE OF PRONOUNCEMENT 21 .08.2019 ITA NO. 4787/DEL/2016 2 IS ALSO APPLICABLE TO THE PENDING APPEALS IN ADDITI ON TO THE APPEALS TO BE FILED HENCEFORTH. HE ACCORDINGLY, SUBMITTED THAT SINCE T HE TAX EFFECT INVOLVED IN THE GROUNDS RAISED BY THE REVENUE IS ADMITTEDLY BELOW R S.50,00,000/-, THEREFORE, IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17/2019 DA TED 08.08.2019, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND HAS TO BE DISMISSED. THE CROSS-OBJECTION FILED BY THE ASSESSEE IS STATED TO BE SUPPORTIVE OF CIT(A)S ORDER. 3. LD. DR FAIRLY CONCEDED THAT THE TAX EFFECT INVOL VED IN THE GROUNDS RAISED BY THE REVENUE IS BELOW RS.50,00,000/-. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. IT IS AN ADMITTED FACT THAT T HE TAX EFFECT INVOLVED IN THE GROUNDS RAISED BY THE REVENUE IS BELOW RS.50,00,000 /-. WE FIND THE AHMEDABAD BENCH OF THE TRIBUNAL IN THE CASE OF DINE SH MADHAVLAL PATEL (SUPRA) AFTER CONSIDERING THE CBDT CIRCULAR DATED 08.08.2019, HAS HELD THAT THE SAID CIRCULAR IS APPLICABLE TO THE PENDING APPE ALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. THE RELEVANT PORTION OF THE ORDER FROM PARA 5 TO 9 READS 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 APPEALS TO BE FI LED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS O N NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDAL ONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AN D SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH N OS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCUL AR 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 APPEAL S IN INCOME-TAX CASES BE ITA NO. 4787/DEL/2016 3 ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY. THE 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 (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 FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY TH E 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 DISPUTED ISSUES ARI SE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSM ENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EX CEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RES PECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FIL ED IN RESPECT 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 ORD ER/ JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WIT H SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM 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 INTACT INCLUDES PARA GRAPH 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 SHALL ALS O APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN / NOT PRESSED. ITA NO. 4787/DEL/2016 4 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITIO N TO THE APPEALS TO BE FILED HENCEFORTH. 8. LEARNED COMMISSIONER (DR) THEN SUBMITS LIBERTY MA Y KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK R ECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHIC H IT CAN BE DEMONSTRATED THAT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHI CH ARE INADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS O F THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT T HE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBERTY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, EITHER OWING TO WRO NG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH CASES BEING COVERED BY THE PERMISSIBL E EXCEPTIONS- OR FOR ANY OTHER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGARD. 9. IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE A PPEALS STAND DISMISSED AS WITHDRAWN. AS THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE AND AS ALL THE RELATED CROSS-OBJECTIONS OF THE ASSESSEE ARISE ONLY AS A RESULT OF THOSE APPEALS AND MERELY SUPPORT THE ORDER OF THE CIT(A), THE CROSS O BJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. ORDERED, ACCORDINGLY . 5. FOLLOWING THE DECISION OF THE AHMEDABAD BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS DINESH MADHAVLAL PATEL (SUPRA), WE H OLD THAT THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE TAX EFFECT BEING BELOW RS.50,00,000/-. ACCORDINGLY, THE APPEAL FILED BY T HE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST DAY OF AUGUST, 2019. SD/- SD/- (R.K. PANDA) (SUCHITR A KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 21 AUGUST, 2019 *AKS*