ACIT, New Delhi V. Sh. Rajan Berry, New Delhi

ITA 4931/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3925 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 15-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B S PUROHIT
• Keywords: Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI F BEN CH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 4931/DEL/2016 [A.Y 2009-10] THE ACIT VS. M/S RAJAN BERRY, B-67, NARAINA CIRCLE 50(1) INDL AREA, PHASE-2, NEW DELHI NEW DELHI PA N NO: AAIPB0802B [APPELLANT] [RESPONDENT] DATE OF HEARING : 19.08.2019 DATE OF PRONOUNCEMENT : 20 .08.2019 REVENUE BY : SH. B.S. PUROHIT, SR. DR ASSESSEE BY : SH. RAHUL KHARE, ADV OCATE ORDER PERSE PAVAN KUMAR GADALE, JUDICIAL MEMBER : THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX [APPEALS]-17 NEW DELHI D ATED 04.07.2016 FOR THE ASSESSMENT YEAR 2009-10. 2 2. ON PERUSAL OF MATERIAL AND GROUNDS OF APPEAL OF THE REVENUE WE FIND TAX EFFECT IS LESS THAN RS. 50 LAKHS. THEREFOR E, THE REVENUE APPEAL HAS TO BE DISMISSED BASED ON THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. 3. WHEREAS THE LD. DR VEHEMENTLY SUBMITTED THAT THE CIRCULAR IS PROSPECTIVE IN NATURE AND IS NOT APPLICABLE TO THE PRESENT APPEAL. 4. WE ARE OF THE SUBSTANTIVE OPINION THAT THE CIRCU LAR NO. 17/2019 DATED 08.08.2019 HAS REFERRED TO THE EARLIER CIRCUL AR NO. 3/2018 OF 11.07.2018 AND ITS AMENDMENT DATED 20.08.2018 VIDE WHICH MONETARY LIMIT FOR FILING OF INCOME TAX APPEALS BY THE DEPAR TMENT BEFORE THE ITAT, HON'BLE HIGH COURT, SLP/AND APPEALS BEFORE TH E HON'BLE SUPREME COURT HAVE BEEN SPECIFIED. IT WOULD BE PROPER TO R EFER TO THE CIRCULAR NO. 17/2019 WHICH IS READ AS UNDER: CIRCULAR NO. 17/2019 NEW DELHI. 8TH AUGUST 2019 SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS F OR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME T AX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS 3 BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DA TED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 20 18 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPE ALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. HI GH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE B EEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED TH AT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOV ED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THR OUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN IT 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/- 4 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FIL ING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER 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 IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN M ORE 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 S PECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF A N 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 AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR 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 LIMI T SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDE R/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASS ESSEE SHALL BE DEALT WITH SEPARATELY.' 5 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CON CERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TAX ACT, 1961. 7. HINDI VERSION WILL FOLLOW. 5. FURTHER IN THE CIRCULAR NO. 17/2019 DT. 8.8.2019 THE CBDT HAS FURTHER ENHANCED THE MONETARY LIMIT FOR FILING THE APPEALS BY WAY OF AN AMENDMENT IN PARA 3 OF CIRCULAR NO. 3/2018. WHEREA S IN RESPECT OF APPLICABILITY OF CIRCULAR TO PENDING APPEALS. WE CO NSIDER IT PROPER TO REFER THE CLAUSE 13 OF CIRCULAR NO. 3/2018 DT. 11.7 .2018 WHICH IS READ AS UNDER: THE CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJE CTIONS /REFERENCES TO BE FILED HENCEFORTH IN HON'BLE SUPRE ME COURT/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIV ELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 6 6. CONSIDERING THE ABOVE CIRCULAR AND CLAUSES DISCL OSED ABOVE, WE ARE OF THE SUBSTANTIVE OPINION THAT CIRCULAR NO. 17 /2019 DT. 8.8.2019 SHALL APPLY RETROSPECTIVELY TO THE PENDING APPEALS. ACCORDINGLY THE REVENUE APPEAL IS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 20.08. 2019. SD/- SD/- [N.K. BILLAIYA] [PAVAN KUMAR GADALE ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 20 TH AUGUST, 2019 SH 7 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR ITAT, NEW DELHI DATE OF DICTATION 19.8.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 19.8.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 20 .8.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER