ADIT, Dehradun V. M/s. Express Drilling Systems LLC., Dehradun

ITA 4987/DEL/2011

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8206 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 09-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Keywords: Tax effect
• Section: 12A

Judgement Text

1 ITA NO. 4987/DE L/2011 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 4987 /DEL/2011 (ASSESSMENT YEAR: 2008-09) ADIT INTERNATIONAL TAXATION, 13A, SUBHASH ROAD, AAYAKAR BHAWAN DEHRADUN (APPELLANT) VS EXPRESS DRILLING SYSTEMS LLC. A/A, MR. JOHANNES WORM C/O. NANGIA & CO, 75/7, RAJPUR ROAD DEHRADUN AACCB3714F (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 25/08/2011, PASSED BY THE CIT (A)-II, DEHRADUN, REL ATING TO A.Y. 2008-09. 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSE L FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE TAX EFF ECT IN THIS APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTM ENT OUGHT NOT TO HAVE FILED THIS APPEAL IN VIEW OF THE CIRCULAR ISSU ED BY THE CBDT APPELLANT BY SH. ROBIN RAWAL, SR.DR RESPONDENT BY SH. AMIT ARORA, CA DATE OF HEARING 28.04.2016 DATE OF PRONOUNCEMENT 28.04.2016 2 ITA NO. 4987/DE L/2011 AND THE PROVISIONS CONTAINED IN SECTION 268A OF THE INCOME TAX ACT, 1961 (HEREINAFTER TO BE REFERRED AS THE ACT). 3. TTHE LD. D.R., REITERATED THIS FACT THAT TAX EFF ECT IN THIS APPEAL IS LESS THAN RS.10,00,000/-. 4. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PA RTIES AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT SE CTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RETROSP ECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE ACT PROV IDES THAT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO THE OT HER INCOME-TAX AUTHORITIES FIXING MONETARY LIMITS FOR NOT FILING T HE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS, SAID INSTRUCT IONS/DIRECTIONS ARE BINDING ON THE INCOME TAX AUTHORITIES. 5. IT IS NOTICED THAT THE CBDT HAS ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015, VIDE WHICH IT HAS REVISED THE MON ETARY LIMIT TO RS.10,00,000/- FOR NOT FILING THE APPEAL BEFORE TH E TRIBUNAL. THE RELEVANT PORTION OF THE SAID CIRCULAR READS AS UNDE R: .. ... 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S. NO APPEALS IN INCOME- TAX MONETARY LIMIT (IN 3 ITA NO. 4987/DE L/2011 MATTER 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 MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SH ALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX M ATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF S TATUTE & RULES. FURTHER, FILING OF APPEAL IN CASES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDE R SECTION 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY T HE LIMITS SPECIFIED IN PARA 3 ABOVE AND DECISION TO FILE APP EAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR 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 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH AP PEAL WAS FILED. 4 ITA NO. 4987/DE L/2011 6. FROM CLAUSE 10 OF THE ABOVE SAID CIRCULAR IT IS CLEAR THAT THESE INSTRUCTIONS ARE APPLICABLE TO THE PENDING APPEALS ALSO AND AS PER CLAUSE 3, THERE IS CLEAR CUT INSTRUCTION TO THE DEP ARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE T HE ITAT WHEREIN TAX EFFECT IS LESS THAN RS.10,00,000/-. THESE INSTR UCTIONS ARE OPERATIVE RETROSPECTIVELY TO THE PENDING APPEALS. 7. KEEPING IN VIEW THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, WE ARE OF THE VIEW THAT THE REVENUE SHOU LD NOT HAVE FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL. 8. IN VIEW OF THE ABOVE, WITHOUT GOING INTO MERITS OF THE CASE, WE DISMISS THE APPEAL FILED BY THE DEPARTMENT. 9. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. (ORDER PRONOUNCED IN THE COURT ON 28/04/2016) SD/- SD/- (N. K. SAINI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28/04/2016 *R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT 5 ITA NO. 4987/DE L/2011 ASSISTANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 28.04.2016 PS 2. DRAFT PLACED BEFORE AUTHOR 28.04.2016 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .04.2016 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. .04.2016 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS .04.2016 PS/PS 6. KEPT FOR PRONOUNCEMENT ON 2 9 .04.2016 PS 7. FILE SENT TO THE BENCH CLERK 2 9 .04.2016 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.