ACIT, New Delhi V. Smt. Nirmal Gupta, Ghaziabad

ITA 4813/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5237 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 01-06-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 04-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEFALI SWAROOP
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE HONBLE PRESIDENT, SHRI G.D. AGRAWAL AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.4813/DEL./2014 (ASSESSMENT YEAR : 2005-06) ACIT, CENTRAL CIRCLE 25, VS. SMT. NIRMAL GUPTA, NEW DELHI. A 13, LAJPAT NAGAR, SECTOR 4, SAHIBABAD, GHAZIABAD (U.P.). (PAN : ACRPG3766G) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : MS. SHEFALI SWAROOP, CIT DR DATE OF HEARING : 07.08.2017 DATE OF ORDER : 07.08.2017 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ASSISTANT COMMISSIONER OF INCOME-TA X, CENTRAL CIRCLE 25, NEW DELHI (HEREINAFTER REFERRED TO AS THE REVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SE T ASIDE THE IMPUGNED ORDER DATED 13.06.2014 PASSED BY THE COMMI SSIONER OF INCOME-TAX (APPEALS)-1, NEW DELHI QUA THE ASSESSMEN T YEAR 2005- 06. ITA NO.4813/DEL./2014 2 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOWS THAT THE SAME IS HAVING LOW TAX EF FECT AS PER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APP EAL IN CASE THE TAX EFFECT IS LESS THAN RS.10,00,000/- AND THIS FAC TUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. DR. 3. WE HAVE HEARD LD. DR ON THE ISSUE IN CONTROVERS Y 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 AFORESAID CIRCULAR IS EXTRACTED AS UNDER: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVE N 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 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCR IBED 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 PARA 3 AB OVE MAY BE WITHDRAWN / NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' ITA NO.4813/DEL./2014 3 4. THE CONTENTION OF LD. CIT DR THAT SHE NEEDS SOM E TIME TO PROCURE THE REPORT FROM THE ASSESSING OFFICER TO WO RK OUT THE TAX EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEAL IN QUESTION IS COVERED UNDER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 (SUPRA), THE REVENUE CANNOT IMPORT T HE FACTS WITHIN THE KNOWLEDGE OF THE ASSESSING OFFICER TO FU RTHER PROLONG THE MATTER. HOWEVER, IN CASE ANY FACT WHICH IS OTHE RWISE NOT ON RECORD, WARRANTS THE RESTORATION OF THE PRESENT APP EAL, THE REVENUE IS AT LIBERTY TO APPROACH THE TRIBUNAL UNDER RELEVA NT PROVISIONS OF LAW. 5. IN VIEW OF THE CBDT CIRCULAR NO.21 DATED 10.12. 2015 HAVING RETROSPECTIVE EFFECT AND WHAT HAS BEEN DISCU SSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEA L IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS TH AN RS.10,00,000/- HENCE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 7 TH DAY OF AUGUST, 2017. SD/- SD/- (G.D. AGRAWAL) (KULDIP SINGH) PRESIDENT JUDICIAL MEMBER DATED THE 7 TH DAY OF AUGUST, 2017 TS ITA NO.4813/DEL./2014 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-1, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.