DCIT, New Delhi V. M/s. Swadeshi Koreatex P. Ltd., New Delhi

ITA 522/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6704 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 20-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 30-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Competent authority; Tax effect
• Section: 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI G.D. AGRAWAL , VICE PRESIDENT AND S HRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO. 522 /DEL /20 1 4 [ ASSESSMENT YEAR : 20 0 8 - 09 ] THE D .C. I.T VS. M/S SWADESHI KOREATEX PVT. LTD CIRCLE 7 (1) B - 5, KALINDI COLONY NEW DELHI NEW DELHI PAN : AA BCS 4809 B CO NO. 290/DEL/2014 [A/O ITA NO. 522 /DEL /201 4 [ ASSESSMENT YEAR: 200 8 - 09] M/S SWADESHI KOREATEX PVT. LTD VS. THE D.C. I.T B - 5, KALINDI COLONY CIRCLE 7(1) NEW DELHI NEW DELHI PAN : AABCS 4809 B APPELLANT BY : SMT. RASHMITA JHA , SR. DR RESPONDENT BY : NONE ITA NO. 4565 /DEL /201 1 [ ASSESSMENT YEAR: 200 8 - 0 9 ] THE A.C. I.T VS. SHRI SURENDER KUMAR BHURARIA CIRCLE PROP. M/S SHIVA METAL TRADERS REWARI KANOD GATE, REWARI PAN : A CTPB 2703 N APPELLANT BY : MS. ANIMA BARNWAL, SR. DR RE SPONDENT BY : SHRI GAURAV MITTAL, ADV 2 ITA NO. 4850 /DEL /20 12 ASSESSMENT YEAR: 2006 - 07 & ITA NO. 5277 /DEL /20 12 ASSESSMENT YEAR: 2006 - 07 THE I.T. O VS. SHRI SANJEEV KUMAR, WARD - 4 PROP. M/S JOON TRANSPORT CO. SONEPAT HOUSE NO. 993, SECTOR 6 BAHADURGARH [HARYANA] PA N : A KDPK 8510 G APPELLANT BY : SMT. RASHMITA JHA, SR. DR RESPONDENT BY : NONE [APPELLANT] [ RESPONDENT] DATE OF HEARING : 0 3 . 0 2.201 6 DATE OF PRONOUNCEMENT : 0 4 . 0 3 .2016 ORDER PER BENCH : THESE ARE A BUNCH OF APPEALS FILED BY THE REVENUE DIRECTED AGAINST SEPARATE ORDER S OF THE LD. CIT(A) PERTAINING TO DIFFERENT ASSESSMENT YEARS AND CROSS OBJECTION FILED BY THE ASSESSEE IN A SINGLE CASE . SINCE THE ISSUES INVOLVED IN THESE APPEALS ARE SIMILAR AND THE APPEALS AND CROSS OBJECTION WERE HEARD TOGETHER, SO THESE ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 3 2. TH ESE APPEAL S AND CROSS OBJECTION HA VE BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LA KH S FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME - TAX ACT. 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATED 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE 1TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT - DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL S CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FURTHER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN A NY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE 4 DECIDED ON MERITS. 5. THE LEARNED COUNSEL S FOR THE ASSESSEE APPEARING IN SOME OF CASES , ON T HE OTHER HAND, STATED THAT THE C IRCULAR WAS SQUARELY APPLICABLE TO THE PRESENT APPEAL S OF THE REVENUE WHILE IN SOME OTHER CASES, NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE. HOWEVER, THE APPEAL S W ERE HEARD EX PARTE AS THE CBDT CIRCULAR IS BENEFICIAL TO THEM. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THESE APPEALS BY THE REVENUE IS BELOW RS. 10.00 LA KH S AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEALS PARTICULARLY BECAUSE THE PENDING APPEAL I S COVERED BY CIRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT T HE TAX EFFECT IS ABOVE RS.10 LAKH S OR IN ANY OTHER MANNER, THE C IRCULAR IS NOT APPLICABLE IN VIEW O F EXCEPTIONS CULLED OUT IN THE C IRCULAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORDER WHICH THE TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR 5 THE REVENUE TO TAKE UP THE ISSUES, INVOLVED IN THESE APPEAL S, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LA KH S. 7. KEEPING IN VIEW THE ABOVE CIRCULAR AND THE PROVISIONS OF SECTION 268A OF THE INCOME - TAX ACT, 1961 AND WITHOUT GOING INTO MERITS OF THE CASES, WE DISMISS THE INSTANT APP EAL S FILED BY THE REVENUE AS TAX EFFECT IN ALL THE APPEAL S IS LESS THAN RS.10 LA KHS . THE CROSS OBJECTION ALSO STANDS DISMISSED AS WITHDRAWN. 8 . IN THE RESULT, ALL THE APPEAL S OF THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE STAND DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 4 . 0 3 .201 6 . S D / - S D / - ( G.D. AGRAWAL ) (C.M. GARG) VICE PRESIDENT JUDICIAL MEMBER DATED: 0 4 T H MARCH, 201 6 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI