DCIT, Dehradun V. M/s. M.L. Juyal & Co. (AOP), Dehradun

ITA 4850/DEL/2016

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5349 (ITAT-DEHRADUN)
• Duration Of Justice: 4 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 12-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N C UPPDAHAY
• Keywords: Tax effect
• Section: 268A

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DEHRADUN CIRCUIT BENCH: DEHRADUN BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4850 /DEL/2016 (ASSESSMENT YEAR: 2006 - 07 ) DCIT, CENTRAL CIRCLE, DEHRADUN VS. M. L. JUYAL & CO. (AOP), 15 SAHARANPUR ROAD, DEHRADUN PAN: AALFM0281C (APPELLANT (RESPONDENT) REVENUE BY: SHRI N. C. UPPDAHAY, SR. DR ASSESSEE BY : SHRI KARAN KUMRA, CA DATE OF HEARING 05/03/2021 DATE OF PRONOUNCEMENT 1 8 / 0 5 /2021 O R D E R PER PRASHANT MAHARISHI, A. M. 1. THIS APPEAL IS FILED BY THE REVENUE /DCIT, CENTRAL CIRCLE, DEHRADUN FOR THE ASSESSMENT YEAR 2006 - 07 AGAINST THE ORDER OF THE LD CIT(A) - 2, AGRA CAMPED AT DEHRADUN DATED 31.03.2016. 2. THE LD AR SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE IMPUGNED APPEAL TAX EFFECT IN THE IMPUGNED APPEAL FILED BY THE ASSESSEE IS ONLY RS. 44,19,926/ - AS MENTIONED IN THE ORDER FO THE LD CIT(A) AT POINT NO. 4 OF THE CAPTION. THEREFORE, HE SUBMITTED THIS A PPEAL MAY BE DISMISSED AS LOW TAX EFFECT APPEAL. 3. THE LD DR FAIRLY AGREED WITH THE SAME. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND ON CAREFUL PERUSAL OF THE MATERIAL ON RECORD, WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST 2019 HAS ENHAN CED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 2. AS A STEP TOWARDS FURTHER MANA GEMENT OF LITIGATION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN PAGE | 2 INCOME - TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIED I N 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 AUTHORITIES FOR EACH ASSESSMENT YEAR VIS - A - VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED, PARA 5 OF THE CIR CULAR IS SUBSTITUTED BY THE FOLLOWING PARA: '5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFECT 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 A RISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT 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 ASSE SSMENT YEAR OR Y EARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY 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 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 MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSES SEE SHALL BE DEALT WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CONCERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME - TAX ACT, 1961. 5. WE FI ND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS. 50 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAV E WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 50 LAKHS. THE ISSUE OF APPLICABILITY OF THE ABOVE CIRCULAR TO PENDING APPEALS HAS BEEN DECIDED BY THE COORDINATE BENCH IN DINESH MADHAVLAL PATEL [TS - 469 - ITAT - 2019(AHD)] 2019 - TIOL - 1556 - ITAT - AHM DATED 14 TH AUGUST, 2019 . PAGE | 3 6. IN VIEW OF THE ABOVE, CIRCULAR NO. 17/2019 DATED 08/08/2019 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD TH AT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. WE ALSO HASTENED TO ADD THAT CERTAIN TIMES INSTANCES STATED IN PARA NO. 10 OF THE CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018 IS NOT DISCERNABLE FROM THE ASSESSMENT AND APPELLATE ORDERS, THEREFORE, IN SUCH CASES, WE ALSO GIVE LIBERTY TO REVENUE THAT IF SUCH INSTANCES COMES TO THEIR NOTICE THAN, REVENUE MAY FILE MISCELLANEOUS AP PLICATION WITH SUCH EVIDENCES. 7. IN THE RESULT, APPEAL FILED BY THE DEPARTMENT FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 8 .0 5 .2021. - S D / - - S D / - (SUDHANSHU SRIVASTAVA) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 8 / 0 5 / 2 0 2 1 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI