ITO, Sonepat V. Shri Dharampal, Sonepat

ITA 495/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4558 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 01-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R C RAI
• Keywords: Tax effect
• Section: 268A

Judgement Text

ITA 495/DEL/2016 AY: 2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO. 495/DEL/2016 AY : 2010-11 INCOME TAX OFFICER, VS SHRI DHARAMPAL WARD-I, SONEPAT. C/O SHRI KANSHI RAM, VILLAGE SAFIABAD, POST OFFICE NATHUPUR, SONEPAT. (PAN: BKAPP6502P) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI RAGHUNATH, SR. DR RESPONDENT BY: SHRI R.C. RAI, ADVOCATE DATE OF HEARING : 26.08.2019 DATE OF PRONOUNCEMENT: 28.08.2019 ORDER PER SUDHANSHU SRIVASTAVA, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), ROHTAK DATED 30.11.2015 PERTAINING TO A Y 2010-11. 2.0 THE REVENUE IS AGGRIEVED BY THE DELETION OF AD DITION OF RS. 1,12,34,345/-MADE BY THE AO ON ACCOUNT OF LONG TERM CAPITAL GAIN. ITA 495/DEL/2016 AY: 2010-11 2 2.1 A PERUSAL OF THE GRIEVANCE OF THE REVENUE SHOWS THAT THE TAX EFFECT WOULD BE LESS THAN RS. 50 LAKHS AND HENCE TH E APPEAL HAS TO BE DISMISSED IN THE LIGHT OF THE CBDT CIRCULAR N O. 17/2019 DATED 08.08.2019. 2.2 THE LD. DR VEHEMENTLY STATED THAT THIS CIRCULAR IS NOT APPLICABLE TO THE EXISTING APPEALS AS IT IS PROSPEC TIVE IN NATURE. 2.3 IN OUR CONSIDERED OPINION, THE LANGUAGE OF THE CIRCULAR 17/2019 DATED 08.08.2019 CLEARLY SHOWS THAT IT HAS REFERRED TO THE EARLIER CIRCULAR 3/2018 AND ITS AMENDMENT DATED 20.08.2018 VIDE WHICH MONETARY LIMIT FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HONBLE HIGH COURT, SLP /AND APPEALS BEFORE THE HONBLE SUPREME COURT HAVE BEEN SPECIFIED. IT WOULD BE PERTINENT TO REFER TO THE CIRCULAR NO. 17/ 2019 WHICH READS 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 BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF 2018 D ATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES ITA 495/DEL/2016 AY: 2010-11 3 (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 BEEN 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 LITIGA TION. 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 MON ETARY LIMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50,00,000/ - 2. BEFORE HIGH COURT 1,00,00,000/- 3. BEFORE SUPREME COURT 2,00,00,00 0/- 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS--VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEAR 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 ITA 495/DEL/2016 AY: 2010-11 4 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.' 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. 3.0 AS MENTIONED ELSEWHERE BY CIRCULAR 17/2019 , THE CBDT HAS FURTHER ENHANCED THE MONETARY LIMIT FOR FILING OF A PPEALS AND THE SAME IS AMENDMENT TO CIRCULAR 3/2018 . WE FIND THAT CLAUSE 13 OF CIRCULAR 3/2018 READS AS UNDER: 'THE CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OB JECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN HON'BLE SUPREM E COURT/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS / REFERENCE S. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 3.1 IN LIGHT OF THE ABOVE, WE ARE OF THE CONSIDERED OPINION THAT CIRCULAR NO. 17/2019 SHALL ALSO APPLY RETROSPECTIVE LY TO PENDING ITA 495/DEL/2016 AY: 2010-11 5 APPEALS. IN THAT VIEW OF THE MATTER, THE APPEAL FI LED BY THE REVENUE STANDS DISMISSED. 4. IN THE RESULT, THE APPEAL BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH AUGUST, 2019. SD/- SD/- (O.P. KANT) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28 TH AUGUST, 2019 GS COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR BY ORDER ASSTT. REGISTRAR ITAT, NEW DELHI