ITO (TDS & Survey), Meerut V. M/s Mankind Pharmaceuticals Ltd., Meerut

ITA 5559/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98368 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 16-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 14-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA
• Assessee Lawyers: VIJAY KUMAR BHARDWAJ
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E : NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER, AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO S . 5559 & 5560 /DEL /20 13 ASSESSMENT YEAR : 20 0 8 - 09 & 2009 - 10 THE I.T .O [TDS & SURVEY] VS. MANKIN D PHARMACEUTICALS LTD MEERUT 6 - B, MOHKKAMPUR ENCLAVE PHASE 1, DELHI ROAD, MEERUT TAN NO. MRTM 00008 B [APPELLANT] [RESPONDENT] DATE OF HEARING : 1 6 . 1 2 . 2015 DATE OF PRONOUNCEMENT : 29 . 12 .2015 APPELLANT BY : SHRI P. DAM KANUNJNA, SR. DR RESPONDENT BY : SHRI VIJAY KUMAR BHARDWAJ, ADV. ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER TH ESE APPEAL S FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF THE CIT(A) , MEERUT , DATED 03 / 07 /20 13 FOR A.Y S 200 8 - 09 & 2009 - 10 RESPECTIVELY . 2 ITA NO S . 5559 & 5560 /DEL/20 13 2 2. TH ESE APPEAL S HA VE BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 D ATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10 LA KH S FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SEC 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INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4. THE LE ARNED CIT - DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY.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, HOWEV ER, IN ANY 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 DECIDED ON MERITS. 3 ITA NO S . 5559 & 5560 /DEL/20 13 3 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPEAL S OF THE REVENUE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THESE APPEA LS BY THE REVENUE IS BELOW RS. 10.00 LACS 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 THE TAX EFFECT IS ABOVE RS.10 LACS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, 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 ESTO PPEL FOR THE REVENUE TO TAKE UP THE ISSUES, INVOLVED IN THESE APPEALS, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LACS. 4 ITA NO S . 5559 & 5560 /DEL/20 13 4 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 APPEAL S FILED BY THE REVENUE AS TAX EFFECT IN THE APPEAL S IS LESS THAN RS.10 LA KHS . 8 . IN THE RESULT, THE APPEAL S OF THE REVENUE STANDS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 9 . 12 .2015 . S D / - S D / - ( N.K. SAINI ) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 9 T H DECEMBER , 2015 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI