DCIT (LTU), New Delhi V. M/s. Nestle India Ltd., Gurgaon

ITA 4815/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9097 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 08-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI O.P. KANT ACCOUNTANT MEMBER I.T.A. NO.4815/DEL/2016 ASSESSMENT YEAR 2007-08 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, LTU, NEW DELHI. V. M/S. NESTLE INDIA LTD., M-BLOCK, NESTLE HOUSE, DLF CITY, PHASE-II, JACARANDA MARG, GURGAON TAN/PAN: AAACN 0757G (APPELLANT) (RESPONDENT) APPELLANT BY: MS. RAKHI VIMAL, SR.D.R RESPONDENT BY: SHRI AJAY VOHRA, ADV. DATE OF HEARING: 07 01 2020 DATE OF PRONOUNCEMENT: 07 01 2020 O R D E R PER AMIT SHUKLA, J.M.: THE AFORESAID APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE IMPUGNED ORDER DATED 22.06.2016 PASSED BY COMMISSIONER OF INCOME TAX (APPEALS)-XXII, NEW DELH I FOR THE ASSESSMENT YEAR 2007-08. 2. AT THE OUTSET, BOTH THE PARTIES ADMITTED THAT TA X EFFECT ON THE DISPUTED ISSUE RAISED IN THE REVENUES APPEA L IS APPROXIMATELY RS. 40.30 LAC WHICH IS BELOW THE PRES CRIBED MONETARY LIMIT OF 50 LAC, AND THEREFORE, IN VIEW OF NEW CBDT CIRCULAR NO.17/2019, THE APPEAL OF THE REVENUE IS N OT MAINTAINABLE. I.T.A. NO.4815/DEL/2016 2 3. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019, WHEREIN THE CBDT HAS FURTHER ENHANCED THE MONETARY LIMIT FOR FILING OF APPEAL BY THE DEPARTME NT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS.20 LACS T O RS.50 LACS. THE SAID CIRCULAR ALSO MAKE REFERENCE TO THE EARLIER CIRCULAR NO.3 OF 2018 DATED 11.07.2018 AND SPECIALL Y STATES THAT AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGA TION, THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE APPEALS. THIS CIRCULAR IS NOT IN SUPERSESSION O F THE EARLIER CIRCULAR BUT ONLY AMENDS THE MONETARY LIMITS AS WEL L AS GIVES CLARIFICATION WITH REGARD TO PARAGRAPH 5 OF THE EAR LIER CIRCULAR. THIS INTER ALIA MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN THE EARLIER CIRCULAR NO.3 OF 2018 DATED 11.07.20 18 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT IS, IT WILL APPLY TO ALL THE PENDING APPEALS. 4. FURTHER CBDT VIDE CLARIFICATION DATED 20.08.2019 HAS CLARIFIED THAT THE AFORESAID CIRCULAR WILL APPLY TO ALL PENDING APPEALS. ACCORDINGLY, THE APPEAL OF THE REVENUE IS DISMISSED AS NON MAINTAINABLE AS THE TAX EFFECT IS BELOW RS.5 0 LAKHS. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH JANUARY, 2020. SD/- SD/- [O.P. KANT] [AMIT SHUKLA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 7 TH JANUARY, 2020 PKK: