ITO, New Delhi V. Sh. Hemant Pal Singh Gill, New Delhi

ITA 5439/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1990 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 20-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JANARDAN DAS
• Keywords: Sale consideration of property below Jantri Value; Tax effect; Reassessment proceedings; Set aside
• Section: 147; 263; 271(1)(c); 11; 143(3); 153A; 268A

Judgement Text

ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 1 OF 19 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: C: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 5793/DEL/2016 ( ASSESSMENT YEAR: 2011-12) INCOME TAX OFFICER, WARD-10(2), NEW DELHI. VS. M/S GLITZ BUILDERS PVT. LTD., M-11, MIDDLE CIRCLE, CONNAUGHT PLACE, NEW DELHI. PAN NO: AABCG9331N APPELLANT RESPONDENT REVENUE BY : SHRI JANARDAN DAS, SR. DR ASSESSEE BY : SHRI AJAY BHAGWANI, CA ITA NO:- 5439/DEL/2016 ( ASSESSMENT YEAR: 2012-13) INCOME TAX OFFICER, WARD- 50(3), NEW DELHI. VS. SHRI HEMANT PAL SINGH GILL, 35/4, 2 ND FLOOR, OLD RAJINDER NAGAR, NEW DELHI. PAN NO: AAEPG8200A APPELLANT RESPONDENT REVENUE BY : SHRI JANARDAN DAS, SR. DR ASSESSEE BY : NONE ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 2 OF 19 ITA NO:- 5800/DEL/2016 ( ASSESSMENT YEAR: 2008-09) ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-33(1), NEW DELHI. VS. SHRI INDER MOHAN THAPAR, A-11, ANAND NIKETAN, NEW DELHI-110021. PAN NO: AAZPT6605P APPELLANT RESPONDENT REVENUE BY : SHRI JANARDAN DAS, SR. DR ASSESSEE BY : NONE ITA NO:- 5801/DEL/2016 ( ASSESSMENT YEAR: 2012-13) DCIT, CIRCLE 10(2), NEW DELHI. VS. M/S GUPTA PROPERTY DEVELOPERS PVT. LTD., KOTHI NO. 452, SECTOR-19, DWARKA, DELHI- 110087. PAN NO: AABCG8850C APPELLANT RESPONDENT REVENUE BY : SHRI JANARDAN DAS, SR. DR ASSESSEE BY : NONE ITA NO:- 3696/DEL/2016 ( ASSESSMENT YEAR: 2006-07) ACIT, CIRCLE 25(1), NEW DELHI. VS. TATA TELESERVICES LTD., 2A, OLD ISHWAR NAGAR, MAIN MATHURA ROAD, NEW DELHI. PAN NO: AAACT2438A APPELLANT RESPONDENT ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 3 OF 19 REVENUE BY : SHRI JANARDAN DAS, SR. DR ASSESSEE BY : SHRI SPARSH BHARGAVA, ADV. AND MS. ISHITA FARSAIYA, ADV. ITA NO:- 3697/DEL/2016 ( ASSESSMENT YEAR: 2007-08) ACIT, CIRCLE 25(1), NEW DELHI. VS. TATA TELESERVICES LTD., 2A, OLD ISHWAR NAGAR, MAIN MATHURA ROAD, NEW DELHI. PAN NO: AAACT2438A APPELLANT RESPONDENT REVENUE BY : SHRI JANARDAN DAS, SR. DR ASSESSEE BY : SHRI SPARSH BHARGAVA, ADV. AND MS. ISHITA FARSAIYA, ADV CONSOLIDATED ORDER PER BENCH (A) THE ABOVE CAPTIONED APPEALS BY REVENUE ARE TAKEN U P TOGETHER FOR THE SAKE OF CONVENIENCE AND BREVITY AND THESE APPEALS ARE HEREB Y DISPOSED OFF THROUGH THIS CONSOLIDATED ORDER; AS IN ALL THESE APPEALS THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT FIXED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT, FOR SHORT) IN ITS CIRCULAR NO. 17/2019 DATED 08.08.2019. GROUNDS TAKEN IN THESE AP PEALS OF REVENUE ARE AS UNDER: ITA NO.- 5793/DEL/2016 1. WHETHER THE LD. CIT(A) HAS ERRED IN FACTS AND I N LAW IN HOLDING THAT NO ADDITION CAN BE MADE IN THE ASSESSMENT COMPLETED U/ S 153A OF THE INCOME TAX ACT, 1961, IF NO INCRIMINATING DOCUMENTS WAS FOUND. ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 4 OF 19 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, CIT(A) HAS ERRED BOTH IN FACTS AND LAW IN DELETING THE ADDITIO N OF RS. 1,27,44,100/- MADE BY THE ASSESSING OFFICER TO THE INCOME OF THE ASSESSEE COMPANY. 3. THE APPELLANT CRAVES LEAVE, TO ADD, ALTER OR AME ND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF THE HEARING. ITA NO.- 5439/DEL/2016 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 88,44,657/- MADE BY THE AO WITH REGARD TO PENAL TY / DAMAGES CHARGED BY HERO HONDA. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT CONSIDERING THAT THE DAMAGES /PENALTY ARE NOT ALLOWABLE AS PER INCOME TA X ACT,1961. 3. THE LD. CIT(A) HAS ERRED IN LAW AND IN FACTS IN NOT CONSIDERING THAT THE CARRIER TRUCKS USED BY THE ASSESSEE ARE INSURED AND ALL THE DAMAGES/PENALTY ARE TO BE BORNE BY THE INSURANCE CO MPANY NOT THE ASSESSEE. THE LD. CIT(A) HAS EVEN ERRED IN NOT TAKI NG CONSIDERING OF THE AOS REMARKS IN HIS ORDER THAT NO PROPER REASON HAVE BEEN PUT IN PLACE BY THE ASSESSEE DURING ASSESSMENT PROCEEDINGS . 4. APPELLANT CRAVES RIGHT TO ADD, DELETE, AMEND ANY GROUND AT ANY TIME DURING THE APPELLATE PROCEEDINGS. CERTIFIED THAT THE COPY OF THE ORDER OF HONBLE CIT (A)-17, NEW DELHI IN THE ABOVE MENTIONED CASE WAS COMMUNICATED ON 01.09. 2016. LIMITATION EXPIRES ON 30/10/2016. ITA NO.- 5800/DEL/2016 1. WHETHER ON FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS CORRECT IN DELETING THE PENALTY U/S 271(1)(C) OF RS . 34,85,759/- RIGHTLY IMPOSED BY THE AO FOR THE A.Y. 2008-09. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS CORRECT IN DELETING THE PENALTY U/S 271(1)(C) OF RS . 34,85,759/- IGNORING THE FACTS OF THE CASE THAT THE ORIGINAL OR DER WAS NOT SET ASIDE IN TOTO BUT ONLY ON A LIMITED ISSUE. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS CORRECT IN DELETING THE PENALTY U/S 271(1)(C) OF RS . 34,85,759/- ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 5 OF 19 IGNORING THE FACT THAT THE ADDITION AS MADE IN THE ORIGINAL ORDER WHICH WERE NOT SUBJECT TO DIRECTION ISSUED U/S 263 OF THE ACT. 4. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS CORRECT IN DELETING THE PENALTY U/S 271(1)(C) OF RS . 34,85,759/- IGNORING THE FACT THE ASSESSING OFFICER DECIDING TH E MATTER IN CONSEQUENCE OF THE ORDER U/S 263 OF THE ACT DID NOT HAVE THE JURISDICTION TO REEXAMINE THE ADDITION MADE IN THE ORIGINAL ORDER U/S 143(3) / 153A AND THEREFORE DID NOT HAVE JURISDICTI ON TO RECONSIDER/REDECIDE ON THE INITIATION OF PENALTY MA DE IN ORIGINAL ASSESSMENT ORDER U/S 143(3)/153A OF THE ACT. 5. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS CORRECT IN DELETING THE PENALTY U/S 271(1)(C) OF RS . 34,85,759/- IGNORING THE FACT THE PENALTY SO IMPOSED BY THE AO IS IN CONSEQUENCE OF THE ASSESSEES APPEAL DISMISSED BY THE LD. CIT(A ) WHICH WERE FILED AGAINST THE ORIGINAL ORDER AND THE SAME WAS NOT ADJ UDICATED BY THE ASSESSEE BY FILING SECOND APPEAL. ITA NO.- 5801/DEL/2016 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) WAS CORRECT IN DELETING THE ADDITION OF RS. 80,00,000/- ON ACCOUNT OF MATERIAL CONSUMED IGNORING THE FACT THAT THE ASS ESSEE COMPANY FAILED TO SUBSTANTIATE ITS CLAIM OF EXPENSES DURING THE CO URSE OF ASSESSEEMNET PROCEEDINGS. 2. THE APPELLANT CRAVES LEAVE, TO ADD, ALTER OR AMEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. ITA NO.- 3696/DEL/2016 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE I N LAW, THE LD. CIT(A) HAS ERRED IN QUASHING THE REASSESSMENT PROCEEDINGS INITIATED U/S 115WG OF THE IT ACT THEREBY DELETING ADDITION OF RS. 1,04 ,74,439/- MADE BY THE AO ON ACCOUNT OF EXPENSES UNDER CLAUSE B SECTION 11 5WB(2) OF THE I.T. ACT WITHOUT APPRECIATING THAT THE SCHEME OF SECTION 147 OF THE I.T. ACT, 1961 CANNOT BE EXTENDED TO THE PROCEEDINGS U/S 115W G OF THE ACT. 2. THE APPELLANT CRAVES, LEAVE OR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME B EFORE OR DURING THE HEARING OF THIS APPEAL. ITA NO.- 3697/DEL/2016 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE I N LAW, THE LD. CIT(A) HAS ERRED IN QUASHING THE REASSESSMENT PROCEEDINGS INITIATED U/S 115WG ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 6 OF 19 OF THE IT ACT THEREBY DELETING ADDITION OF RS. 77,8 4,163/- MADE BY THE AO ON ACCOUNT OF EXPENSES UNDER CLAUSE B SECTION 115WB (2) OF THE I.T. ACT WITHOUT APPRECIATING THAT THE SCHEME OF SECTION 147 OF THE I.T. ACT, 1961 CANNOT BE EXTENDED TO THE PROCEEDINGS U/S 115WG OF THE ACT. 2. THE APPELLANT CRAVES, LEAVE OR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME B EFORE OR DURING THE HEARING OF THIS APPEAL. (B) AT THE OUTSET, AT THE TIME OF HEARING BEFORE US, WE REFERRED TO THE RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F.NO. 279/ MISC. 142/2007-ITJ (PT.) WHEREIN MINIMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) HAS BEEN ENH ANCED TO RS. 50,00,000/- BY REVISING THE EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.0 7.2018. IN VIEW OF THE AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019; THESE A PPEALS FILED BY REVENUE ARE NOT MAINTAINABLE AND REVENUE IS REQUIRED TO WITHDRAW / NOT PRESS THOSE APPEALS FILED BY REVENUE IN WHICH TAX EFFECT IS BELOW RS. 50,00,000. THE LEARNED AUTHORIZED REPRESENTATIVES (CHARTERED ACCOUNTANTS / ADVOCATES) OF THE RESPECTIVE ASSESSEES IN THESE APPEALS CONTENDED THAT RESPECTIVE APPEALS FIL ED BY REVENUE SHOULD BE DISMISSED HAVING REGARD TO AFORESAID CBDT CIRCULAR DATED 08.0 8.2019. SHRI JANARDAN DAS, THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE (LD. SR . DR, FOR SHORT) REPRESENTING REVENUE IN ALL THESE APPEALS ON THE DATE OF HEARING , ACCEPTED, AT THE TIME OF HEARING OF THESE APPEALS, THAT THE TAX EFFECT IN THE AFOREMENT IONED APPEALS FILED BY REVENUE IS BELOW RS. 50,00,000/- IN EACH OF THESE APPEALS. HE DID NOT OPPOSE THE CONTENTION OF ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 7 OF 19 THE LEARNED AUTHORIZED REPRESENTATIVES OF THE RESPE CTIVE ASSESSEES THAT ALL THESE APPEALS FILED BY REVENUE SHOULD BE DISMISSED. (B.1) THE AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08/0 8/2017 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 TAX APPELLA TE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIG ATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DA TED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (TH E BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VIDE WHICH MONETA RY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFO RE INCOME TAX APPELLATE TRIBUNAL. HIGH COURTS AND SLPS/APPEALS BE FORE SUPREME COURT HAVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILIN G OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDM ENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, TH E TABLE FOR MONETARY LIMITS SPECIFIED 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/- 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 IS SUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 8 OF 19 ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH T HE 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 A SSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE O RDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASS ESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEME NT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEAL T 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. (B.1.1) WE HAVE NOTED THAT VIDE CIRCULAR NO. 3/2018 DATE D 11 TH JULY, 2018 ISSUED BY CBDT IT WAS NOT ONLY DIRECTED THAT THE DEPARTMENT S HALL NOT FILE APPEAL BEFORE THE TRIBUNAL IN CASES WHERE THE TAX EFFECT DOES NOT EXC EED THE MONETARY LIMIT OF RS.20 LAKH; BUT IT WAS ALSO DIRECTED THAT THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS. IT WAS FURTHER DIRECTED IN AFORESAID CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018, THAT THE PENDING APPEALS BELOW THE SPEC IFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED BY THE DEPARTMENT. RELEVANT P ORTION OF THE AFORESAID CIRCULAR NO. 3/2018 DATED 11.07.2018 IS AS UNDER: THE CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJE CTIONS /REFERENCES TO BE FILED HENCEFORTH IN HON'BLE SUPREME COURT/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJEC TIONS/REFERENCES. PENDING ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 9 OF 19 APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 AB OVE MAY BE WITHDRAWN/NOT PRESSED. (B.1.2) NOW, VIDE ITS AFORESAID RECENT CIRCULAR NO. 17/201 9 DATED 08.08.2019, CBDT HAS AMENDED ITS AFORESAID EARLIER CIRCULAR NO.3/201 8 DATED 11.7.2018; AND IT HAS BEEN DIRECTED THAT MONETARY LIMIT FOR FILING THE DEPARTM ENTAL APPEAL IN INCOME TAX CASES BE ENHANCED FURTHER AND ACCORDINGLY, THE MONETARY LIMI T FOR FILING THE APPEAL BEFORE THE APPELLATE TRIBUNAL HAVE BEEN ENHANCED TO RS.50 LAKH S THROUGH AMENDMENT OF PARAGRAPH 3 OF AFORESAID CIRCULAR NO. 3/2018 DATED 11.07.2018. AFORESAID CIRCULAR NO.17/2019 DATED 08.08.2019 HAS BEEN ISSUED TO REVI SE / ENHANCE THE MONETARY LIMIT OF TAX EFFECT TO RS. 50,00,000/- AS COMPARED TO THE MONETARY LIMIT OF RS. 20,00,000/- VIDE CBDTS EARLIER CIRCULAR NO. 3/2018 DATED 11.7. 2018; WITHOUT, HOWEVER, IN ANY WAY AMENDING ANY OTHER MATERIAL PART OF THE AFORESAID C BDT CIRCULAR DATED 11.07.2018. MORE PARTICULARLY, THERE IS NOTHING IN THE AFORESAI D RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 TO INFER THAT DIRECTION CONTAINED IN AFORESAID EARLIER CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 TO WITHDRAWN / NOT PRESS EXISTING APPEALS (BELOW SPECIFIED MONETARY LIMIT OF TAX EFFECT) ALREADY FILED BY REVE NUE IN ITAT; DOES NOT CONTINUE TO BE APPLICABLE. THEREFORE, ALL THE PROVISIONS OF AFORES AID EARLIER CIRCULAR NO. 3/2018 DATED 11.7.2018 SHALL APPLY MUTATIS MUTANDIS TO RECENT AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 ALSO. ACCORDINGLY, THE DIRECTION IN AFORESAID EARLIER CIRCULAR DATED 11.07.2018 TO WITHDRAW / NOT PRESS REVENUES APPEAL WITH TAX EFFECT BELOW RS. 20,00,000/-; IN VIEW OF RECENT AFORESAID CIRCULAR D ATED 08.08.2019; IS NOW TO BE READ AS ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 10 OF 19 DIRECTION TO WITHDRAW /NOT PRESS REVENUES APPEAL W ITH TAX EFFECT BELOW REVISED / ENHANCED LIMIT OF RS. 50,00,000/-. (B.2) FOR OUR AFORESAID VIEW EXPRESSED IN THE FOREGOING PARAGRAPH (B.1.2) OF THIS ORDER; WE TAKE STRENGTH FROM A RECENT PRECEDENT IN THE CASE OF INCOME TAX OFFICER, WARD 3(2), AHMADABAD VS. DINESH MADHAVLAL PATELIN ( ITA NO.- 1398/AHD/2004 FOR ASSESSMENT YEAR 1998-99), AND 627 OTHERS; IN WHICH, VIDE ORDER DATED 14.08.2019, OF A BENCH OF INCOME TAX APPELLATE TRIBUNAL, AHMADAB AD [ CORAM: JUSTICE P P BHATT, PRESIDENT, AND SRI PRAMOD KUMAR, VICE PRESIDENT] IT WAS HELD, AT PARAGRAPH 7 OF THE AFORESAID ORDER DATED 14/08/2019, THAT RELAXATION I N MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FI LED HENCEFORTH. THIS DECISION HAS ALREADY BEEN REPORTED IN 2019-TIOL-1556-ITAT-AHM, A ND THE RELEVANT PORTION OF THE AFORESAID ORDER DATED 14.08.2019 OF A BENCH, ITAT , AHMADABAD: CONTAINING DETAILED DISCUSSION OF THE ISSUE, IS REPRODUCED AS UNDER: 1. THESE 628 APPEALS AND COS PERTAIN TO THE APPEAL S ARE FILED BY VARIOUS ASSESSING OFFICER, ALL THESE APPEALS CALL INTO QUESTION CORRE CTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONER OF INCOME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS. 50,00,000 IN EACH OF THESE APPEALS. THE CROSS OBJECTIONS TAKEN UP FOR HEARING ARE ONLY SUCH CROSS OBJECTIONS AS EMANATE FROM THESE APPEALS AND ARE BROADLY IN SUPPORT OF THE ORDERS PASSED BY THE COMM ISSIONER (APPEALS). IN THESE CASES, IN THE LIGHT OF THE DISCUSSIONS WITH THE PRINCIPAL CHIEF C OMMISSIONER OF INCOME TAX (GUJARAT) AND REPRESENTATIVES OF THE AHMEDABAD ITAT BAR ASSOCIATI ON, INDIVIDUAL NOTICES ARE DISPENSED WITH; NOTICES OF HEARING ARE GIVEN ONLY THROUGH THE NOTIC E BOARD. 2. IT IS IN THIS BACKDROP THAT WE ARE PLEASED TO T AKE NOTE OF A VERY PRAGMATIC AND TAXPAYER FRIENDLY POLICY DECISION BY THE GOVERNMENT OF INDIA FOR REDUCING THE INCOME TAX LITIGATION. VIDE CBDT CIRCULAR DATED 8TH AUGUST, 20 19, THE INCOME TAX DEPARTMENT HAS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAIN ST THE DECISIONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BE LOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPE ALS, BEFORE THIS TRIBUNAL, AGAINST THE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN W HICH OVERALL TAX EFFECT, EXCLUDING INTEREST- ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 11 OF 19 EXCEPT WHEN INTEREST ITSELF IS IN DISPUTE, IS RS 50 ,00,000 OR LESS. WHAT IT MEANS, IN PLAIN WORDS, IS THAT WHEN A COMMISSIONER (APPEALS) GIVES THE TAX PAYER TAX RELIEF OF UPTO RS 50 LAKHS IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE COMMISSIONER (APPEALS) CANNOT BE CHALLENGED BEFORE THIS TRIBUNAL, THAT WHEN THIS TRIBUNAL GIVES THE TAXPAYER RELIEF OF UPTO RS 1 CRORE IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE TRIBUNA L CANNOT BE CHALLENGED BEFORE THE HONBLE HIGH COURT, AND THAT WHEN HON'BLE HIGH COURT GIVES RELIEF OF UPTO RS 2 CRORE TO THE TAXPAYER IN AN APPEAL IN AN ASSESSMENT YEAR, THAT RELIEF CANNOT BE CHALLENGED BEFORE HONBLE SUPREME COURT. THESE MONETARY THRESHOLD LIMITS FOR FILING O F APPEALS BY THE INCOME TAX AUTHORITIES DO NOT TAKE INTO ACCOUNT INTEREST AND OTHER COROLLARIE S OF THE TAX DEMANDS BEING CONFIRMED SUCH AS PENALTIES, EXCEPT WHEN A PENALTY ITSELF IS SUBJE CT MATTER OF LITIGATION, AND PROSECUTIONS. THE ENHANCEMENT OF THESE MONETARY LIMITS IS AT AN UNPRE CEDENTED SCALE. THE MONETARY LIMIT FOR APPEALS BEFORE THIS TRIBUNAL, WHICH WAS RS 3,00,000 TILL 10TH JULY 2014, HAS BEEN IN EFFECT ENHANCED TO ALMOST 1,700% IN THE LAST FIVE YEARS. TH IS SUBSTANTIAL RELAXATION IS CERTAINLY A HUGE STEP WHICH SIGNIFIES TRUST REPOSED BY THE GOVE RNMENT OF INDIA IN THE DECISIONS OF THE APPELLATE FORUMS, AND SUBSTANTIALLY CUTS DOWN TIME TAKEN IN THE FINALITY OF THE APPELLATE PROCESS. IT IS INDEED HEARTENING TO NOTE THAT IN ON E STROKE, THE GOVERNMENT HAS NOT ONLY PREVENTED, BUT HAS. IN EFFECT, SET THE STAGE FOR WI THDRAWAL OF THOUSANDS OF APPEALS BEFORE THIS TRIBUNAL AND BEFORE HONBLE COURTS ABOVE. IN AN ENV IRONMENT IN WHICH RETROSPECTIVITY WAS ATTACHED ONLY TO THE TAXATION AND NOT TO TAX RELIEF S OR CONCESSIONS, SUCH AN APPROACH IS A PLEASANT DEPARTURE FROM LEGACY PRACTICES. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE GENEROUS CONCESSION BY THIS BENEVOLENT CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRUCTUOUS. THERE IS. HOWEVER, A SMALL ISSUE THAT WE MUST DEAL WITH. 4. SMT APARNA AGARWAL, LEARNED DEPARTMENTAL REPRESE NTATIVE, HOWEVER, HAS A POINT TO MAKE. SHE POINTS OUT THAT THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT CLEARLY RETROSPECTIVE INASMUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT (T)HE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIR CULAR'. IT IS THUS POINTED OUT THAT THIS SENTENCE GIVES AN IMPRESSION THAT IS ONLY AFTER THE DATE OF THE SAID CIRCULAR THAT THE DEPARTMENTAL APPEALS WILL NOT BE FILED IN THE C ASES WITHIN THE SPECIFIED TAX EFFECT LIMITS. WE ARE URGED TO BEAR IN MIND THE IMPACT OF THIS OBSERV ATION WHILE GIVING EFFECT TO THE CIRCULAR DATED 8 TH AUGUST, 2019. SHE. HOWEVER, HASTENS TO ADD THAT SH E IS YET TO HAVE ANY SPECIFIC INSTRUCTIONS ON THE ISSUE AND SHE LEAVES IT FOR THE BENCH TO TAKE THE APPROPRIATE CALL. LEARNED REPRESENTATIVES APPEARING FOR THE TAXPAYERS VEHEMEN TLY OPPOSE THE SUGGESTION IMPLICIT IN HER SUBMISSIONS. ALL OF THEM ARE UNANIMOUS IN THEIR ARG UMENT THAT THE CIRCULAR MUST BE HELD TO HAVE RETROSPECTIVE APPLICATION AND MUST EQUALLY APP LY TO THE PENDING APPEALS AS WELL SHRI J P SHAH. SENIOR ADVOCATE, POINTS OUT THAT THE CIRCULAR DATED 8' H AUGUST 2019 I NOT A STANDALONE CIRCULAR AND IT IS REQUIRED TO BE READ WITH THE OLD CIRCULAR NO. 3 OT 2018 WHICH IS WHAT IT SEEKS TO MODIFY. THIS CIRCULAR, ACCORDING TO THE LEARNED COUNSEL, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. HE URGES US NOT TO RE AD THE CIRCULAR IN A MANNER SO AS TO NULLIFY THE UNDERLYING APPROACH AND OBJECT OF REDUCING LITI GATION. SHRI SOPARKAR, LEARNED SENIOR ADVOCATE, SUBMITS THAT ALL THAT THE PRESENT CIRCULA R DOES IS TO MODIFY THE MONETARY LIMITS AND NOTHING MORE, AND, THEREFORE, IT CANNOT BE TREATED TO FOLLOW ANY OTHER APPROACH OTHER THAN THE APPROACH FOLLOWED IN THE OLD CIRCULAR. THE OLD CIRC ULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. SHRI TUSHAR HEMANI, LEARNED SENIOR ADVOCATE, POINTS OUT THAT TH E CIRCULAR DATED 8 TH AUGUST 2019 ONLY GIVES FURTHER RELIEF NOT ONLY IN TERMS OF THE MONETARY LI MITS BUT ALSO IN TERMS OF THE MANNER IN WHICH THE APPLICATION OF CIRCULAR TO ORDERS DEALING WITH MORE THAN ONE YEAR IS TO MADE. SHRI S N DIVETIA, LEARNED COUNSEL FOR THE ASSESSEE, SUBMITS THAT UNLIKE IN THE CASES OF EARLIER CBDT CIRCULARS, WHICH USED TO BE IN SUPERSESSION OF EARL IER CIRCULARS ON THE ISSUES, THE CIRCULAR DATED 8 TH AUGUST 2019 ONLY MODIFIES THE EARLIER CIRCULAR WHI CH, INTER ALIA, PROVIDED FOR ITS RETROSPECTIVE APPLICATION. OUR ATTENTION IS INVITED TO SOME JUDIC IAL PRECEDENTS IN SUPPORT OF THE CONTENTION THAT THE BENEVOLENT CIRCULAR, SUCH AS THE ONE IN QU ESTION, IS TO BE GIVEN EFFECT IN RESPECT OF THE ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 12 OF 19 PENDING APPEALS AS WELL. MS URVASHI SHODHAN. LEARNE D COUNSEL FOR THE ASSESSEE, POINTS OUTS THAT ITS PLAINLY CONTRARY TO THE SCHEME OF THE LITI GATION POLICY OF THE GOVERNMENT OF INDIA TO GIVE THIS CIRCULAR ONLY PROSPECTIVE EFFECT. SHRI S K SADHWANI, LEARNED COUNSEL FOR THE ASSESSEE, INVITES OUR ATTENTION TO THE LETTER DATED 16 TH JULY 2018 ISSUED BY MEMBER CBDT TO THE ALL THE PRINCIPAL CHIEF COMMISSIONERS OF INCOME TAX, IN THE CONTEXT OF CIRCULAR DATED 11 TH JULY 2018 THAT THE PRESENT CIRCULAR SEEKS TO MODIFY, SEEKING REPORT ON WITHDRAWAL OF THE APPEALS COVERED BY THE CIRCULAR. HE THEN POINTS OUT TMT IT IS THE O LD CIRCULAR IS STILL ALIVE TODAY AND THE ONLY CHANGE IS WITH RESPECT TO THE MONETARY LIMITS. IN A LL FAIRNESS, THEREFORE, THE SAME APPROACH REGARDING WITHDRAWAL OF PENDING APPEALS MUST BE FOL LOWED FOR THIS CIRCULAR AS WELL. ON THE SAME LINES, ARGUMENTS ARE ADVANCED BY THE LEARNED R EPRESENTATIVES WHICH, FOR THE SAKE OF BREVITY AND TO AVOID REPETITION, WE ARE NOT REFERRI NG TO IN MORE SPECIFIC DETAILS. IN BRIEF REJOINDER, LEARNED DEPARTMENTAL REPRESENTATIVE GRAC IOUSLY LEAVES THE MATTER TO US. 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAV ING PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HESITATION IN HOLDING THAT TH E CONCESSION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONI NG IS THIS. THE CIRCULAR DATED 8 ,H AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS I S EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH 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 INCOME-TAX MATTERS MONETARY LIMIT (RS.) / 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 O F 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 CIRCULAR IS SUBSTITUTED BY TH E FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFEC T SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF I N 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 T HE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEED S ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 13 OF 19 THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL S HALL HE 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 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. I N CASE WHERE A COMPOSITE ORDER/JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEAL T WITH SEPARATELY' 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAP H 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HO LD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS T O BE FILED HENCEFORTH. (B.2.1) MOREOVER, IN THE FOLLOWING PRECEDENTS, CO-ORDINA TE BENCHES OF INCOME TAX APPELLATE TRIBUNAL, DELHI; HAVE ALREADY TAKEN THE V IEW THAT THE AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 SHALL ALSO APPLY RETRO SPECTIVELY TO PENDING APPEALS: ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 14 OF 19 (I) ORDER DATED 21.08.2019 OF A BENCH OF ITAT, DE LHI IN ITA NO. 5416/DEL/2015 AND 6 OTHERS FOR A.Y. 2011-12, IN THE CASE OF ITO VS. M/S P.L. & SONS INFRASTRUCTURE (P) LTD. AND 6 OTHER APP EALS (II) ORDER DTD. 19/08/2019 OF B BENCH OF ITAT, D ELHI, IN ITA NO. 4497/DEL/2016 FOR A.Y. 2011-12 IN THE CASE OF ITO V S. M/S BSA HOMES PVT. LTD. (III) ORDER DTD 19/08/2019 OF C BENCH OF ITAT, D ELHI, IN ITA NO. 4276/DEL/2016, FOR A.Y. 2012-13 IN THE CASE OF ACIT VS. ISHAM SYSTEM (P) LTD. (IV) ORDER DTD 19.08.2019 OF E BENCH OF ITAT, D ELHI IN ITA NO.- 5230/DEL/2011 FOR A.Y. 2004-05 DELHI IN THE CASE O F ACIT VS. M/S MAJESTIC PROPERTIES. (V) ORDER DTD. 19/08/2019 OF F BENCH OF ITAT, D ELHI IN ITA NOS. 5136 & 5137/DEL/2016 FOR A.Y. 2009-10 & 2010-11 IN THE CASE OF ACIT VS. PRATEEK BUILDTECH INDIA P. LTD. (VI) ORDER DTD 21/08/2019 OF D BENCH, OF ITAT, DE LHI IN ITA NOS.- 5628/DEL/2016 AND 1481 & 5961/DEL/2016 FOR A.Y. 20 07-08 AND 2006-07 & 2013-14 IN THE CASE OF ITO VS. JAIN STEEL CORPORA TION AND ACIT VS. JINDAL POLY FILMS LTD. (B.2.2) A PERUSAL OF THE AFORESAID RECENT CBDT CIRCULAR DA TED 08.08.2019 SHOWS THAT MINIMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF SPECIAL LEAVE PETITION (SLP FOR SHORT) ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 15 OF 19 IN HONBLE SUPREME COURT HAS ALSO BEEN ENHANCED TO RS. 2,00,000/-. VIDE SEPARATE ORDERS, EACH DATED 16.08.2019, HONBLE SUPREME COUR T HAS ALREADY DISMISSED THE FOLLOWING SLPS FILED BY REVENUE EARLIER; SINCE THE TAX EFFECT INVOLVED IN EACH OF THESE CASES WAS LESS THAN RS. 2,00,000/-: (I) SPECIAL LEAVE PETITION (CIVIL) DIARY 25086/2019 IN THE CASE OF CIT V/S M/S HONGKONG AND SHANGHAI BANKING CORPORATION LTD. (ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 06-02-2019 IN ITA NO. 1650/2016 PASSED BY THE HIGH COURT OF JUDICATURE AT BOMBAY) (II) SPECIAL LEAVE PETITION (CIVIL) DAIRY NO. 26373 /2019 IN THE CASE OF DCIT VS. EB HOLDING COMPANY LTD. (ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 25-01-2019 IN WP NO. 3642/2018 PASSED B Y THE HIGH COURT OF JUDICATURE AT BOMBAY) (III) SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 2149 7/2019 IN THE CASE OF PR. CIT VS. KESHAV POWER LTD. (ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 07-09-2018 IN ITA NO. 277/2018 PASSED BY THE HIGH COURT OF DELHI AT NEW DELHI) (IV) SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 2507 6/2019 IN THE CASE OF PR. CIT VS. MEENAKSHI MODI. (ARISING OUT OF IMPUGNED FI NAL JUDGMENT AND ORDER DATED 24-01-2019 IN DBITA NO. 156/2018 PASSED BY TH E HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR) (B.2.3) MOREOVER, VIDE F.NO. 279/MISC/M-93/2018-ITJ, DATED 20 TH AUGUST, 2019; CLARIFICATION HAS BEEN ISSUED BY CBDT THAT REVISED MONETARY LIMITS MENTIONED IN ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 16 OF 19 CIRCULAR NO. 17/2019 IS APPLICABLE TO ALL PENDING S LPS / APPEALS / CROSS OBJECTIONS / REFERENCES. IT READS AS UNDER: F. NO. 279/MISC/M-93/2018-ITJ GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES ********** ROOM NO. 12, 5 TH FLOOR, JEEVANVIHAR BUILDING, PARLIAMENT STREET, NEW DELHI. DATED THE 20 TH AUGUST, 2019. TO, ALL PR. CHIEF COMMISSIONERS OF INCOME TAX SUB: WITHDRAWAL OF PENDING CASES AFTER ENHANCEMENT OF MONETARY LIMITS MATTER REG; REF. CIRCULAR NO. 17/2019 DATED 8 TH AUGUST, 2019 (F.NO. 279/MISC. 142/2007- ITJ(PT) AND CIRCULAR NO. 3 OF 2018. SIR, KINDLY REFER TO THE AFORESAID SUBJECT. REPRESENTAT IONS HAVE BEEN RECEIVED FROM THE FIELD, SEEKING CLARIFICATIONS ON APPLICABILITY OF CIRCULAR 17 OF 2019 ON PENDING APPEALS. 2. IN THIS REGARD, IT IS STATED THAT CIRCULAR 17 OF 2019 RELAXES THE MONETARY LIMITS AS MENTIONED IN THE TABLE THERE IN AND ALL OTHER PA RAS, EXCEPT PARA 5 OF CIRCULAR 3, RELATING TO COMPOSITE ORDERS SHALL BE APPLICABLE IN TOTO. 3. THEREFORE, IT IS CLEAR THAT THE REVISED MONETARY LIMITS SO MENTIONED IN CIRCULAR 17/2019 IS APPLICABLE, TO ALL PENDING SLPS/APPEALS/ CROSS OBJECTIONS/REFERENCES. ALL SUCH PENDING APPEALS WITHIN THE REVISED LIMITS SHAL L BE WITHDRAWN ON OR BEFORE 31.10.2019 AND A FORTNIGHTLY REPORT AS TO PROGRESS ON WITHDRAWALS SHOULD BE SUBMITTED TO BOARD, BY 15 TH & 31 ST OF EVERY MONTH. 4. THIS ISSUES WITH THE APPROVAL OF THE CHAIRMAN, C BDT. ENCL. AS ABOVE YOURS FAITHFULLY, SD/- (ABHISHEKGAUTAM) DCIT (OSD) (ITJ-I), CBDT TELE: 011-23741832 ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 17 OF 19 COPY TO: 1. PR. DCIT (L&R) FOR KIND INFORMATION & N ECESSARY ACTION 2. DATABASE CELL FOR UPLOADING ON IRSOFFIC ERONLINE. (B.3) IN VIEW OF THE FOREGOING DISCUSSION, AND RESPECTFU LLY FOLLOWING THE PRECEDENTS MENTIONED IN FOREGOING PARAGRAPHS (B.2) , (B.2.1) AND (B.2.2) OF THIS ORDER; AND, IN VIEW OF THE AFORESAID CLARIFICATION ISSUED BY CBDT AND MENTIONED IN FOREGOING PARAGRAPH (B.2.3) OF THIS ORDER; WE HOLD THAT THE REVISED / ENHANCED MINIMUM THRESHOLD LIMIT OF TAX EFFECT OF RS. 50,00,000/- V IDE AFORESAID RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IS APPLICABLE NOT ONLY FOR APPEALS TO BE FILED BY REVENUE IN FUTURE; BUT ALSO FOR APPEALS ALREADY FILED BY REVENUE IN ITAT. ACCORDINGLY, IN VIEW OF THE AFORESAID RECENT CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019; THE DIRECTION IN AFORESAID EARLIE R CIRCULAR DATED 11.07.2018 TO WITHDRAW /NOT PRESS REVENUES APPEAL WITH TAX EFFECT BELOW RS. 20,00,000/-; IS NOW TO BE READ AS DIRECTION TO WITHDRAW / NOT PRESS REVENUES APPEAL WITH TAX EFFECT BELOW REVISED / EN HANCED LIMIT OF RS. 50,00,000/-. BY NECESSARY IMPLICATION, THEREFORE, ALL EXISTING APPEALS IN ITAT, HAVING TAX EFFECT BELOW THE REVISED / ENHANCE D LIMIT OF RS. 50,00,000/- , ARE TO BE TREATED AS WITHDRAWN / NOT PRESSED; AND ARE, NOT MAINTAINABLE. WE ALSO HOLD, IN VIEW OF THE FOREGOING, THAT THE RELAXATION IN MONETARY LIMITS FOR FILING OF APPEALS BY REVENUE IN ITAT, VIDE AFORESAI D CBDT CIRCULAR DATED 08.08.2019 SHALL BE APPLICABLE ALSO TO THE PENDING APPEALS IN ITAT ALREADY FILED BY REVENUE. IT IS WELL SETTLED THAT CBDT CIRCULARS AND INSTRUCTIONS, WHICH ARE BENEFICIAL FOR ASSESSEE, ARE BINDING ON THE AUT HORITIES BELOW. ACCORDINGLY, ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 18 OF 19 THESE APPEALS FILED BY REVENUE ARE TREATED AS WITHD RAWN / NOT PRESSED BY REVENUE; AND HELD TO BE NOT MAINTAINABLE HAVING REGARD TO TH E AFORESAID CBDT CIRCULAR DATED 08.08.2019. WE CLARIFY THAT REVENUE WILL BE AT LIBERTY TO APPRO ACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) OF INCOME TAX ACT, 19 61 SEEKING PARTIAL RECALL OF THIS ORDER AND, FOR RESTORATION OF THESE APPEAL( S), IF ANY, IN WHICH IT IS FOUND THAT APPEAL(S) OF REVENUE IS / ARE NOT COVERE D BY AFORESAID CBDT CIRCULAR DATED 08.08.2019. (C) IN THE RESULT, ALL THESE APPEALS OF REVENUE ARE HEL D TO BE NOT MAINTAINABLE, AND TREATED AS WITHDRAWN / NOT PRESSED; AND ARE, ACCORD INGLY, DISMISSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AFTER CONCLUSIO N OF HEARING ON THE DATE OF HEARING. NOW THIS DETAILED WRITTEN ORDER IS PRONOUNCED IN OP EN COURT ON 05 /9/2019 SD/- SD/- (AMIT SHUKLA) (ANADEE NATH MISSHR A) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 05 .09.2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ITA NO.- 5793/DEL/2016 AND OTHERS. GLITZ BUILDERS & PROMOTERS PVT. LTD. PAGE 19 OF 19 ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 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 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