DCIT (International Taxation), New Delhi V. M/s. Herbert Smith Freehills LLC, Gurgaon

ITA 5647/DEL/2016

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4806 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 03-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: D NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER [THROUGH VIDEO CONFERENCING] ITA NO.5647/DEL./2016 ASSESSMENT YEAR: 2012-13 DCIT (INTERNATIONAL TAXATION), CIRCLE-2(1)(1), NEW DELHI VS. M/S. HERBERT SMITH FREEHILLS LLC, C/O- M/S. SRBC & ASSOCIATES LLP, GOLF VIEW CORPORATE TOWER B, SECTOR-42, GURGAON. PAN :AAFFH0766B (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THE PRESENT APPEAL BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER DATED 29.08.2016 PASSED BY COMMISSIONER OF IN COME-TAX (APPEALS)-43, NEW DELHI, FOR ASSESSMENT YEAR 2012-1 3. 2. AT THE OUTSET, THE LEARNED SR. DR BROUGHT TO OUR A TTENTION THAT CBDT, VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST, 2019, APPELLANT BY DR. PRABHA KANT, CIT RESPONDENT BY SHRI DIVESH CHAWLA, AR DATE OF HEARING 10.02.2021 DATE OF PRONOUNCEMENT 10.02.2021 2 ITA NO. 5647/DEL./2016 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY A PPEAL BEFORE THE TRIBUNAL, IF THE TAX EFFECT IS LESS THAN RS.50 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDE D AS PER THE INSTRUCTION OF THE CBDT. 3. WE HAVE HEARD BOTH THE PARTIES THROUGH VIDEO CONFER ENCING AND PERUSED THE RELEVANT RECORD. WE FIND THAT THE C BDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019, HAS ENHANCED THE MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTM ENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS.20 LAKHS TO R S.50 LAKHS. THE SAID CIRCULAR ALSO MAKES REFERENCE TO THE EARLI ER CIRCULAR NO. 3/2018, DATED 11.7.2018 AND, ESPECIALLY STATES THAT AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE APP EALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE EARLIER CIRC ULAR BUT ONLY AMENDS THE MONETARY LIMITS AS WELL AS GIVES CLARIFI CATION WITH REGARD TO PARAGRAPH 5 OF THE EARLIER CIRCULAR. THIS , INTER ALIA, MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN TH E EARLIER CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT, IT WILL APPLY TO ALL THE PENDING A PPEALS. 4. FURTHER, CBDT VIDE CIRCULAR DATED 20 TH AUGUST, 2019 (F. NO. 279/19-93/2018-ITJ), HAS CLARIFIED THAT IT WILL APP LY TO ALL PENDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIR CULAR, THE APPEAL OF THE REVENUE IS DISMISSED AS NON-MAINTAINA BLE AS THE TAX EFFECT INVOLVED IN THE APPEAL IS BELOW RS.50 LA KHS. HOWEVER, IT IS MADE CLEAR THAT THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THE ORDE R, IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMI T OF RS.50,00,000/- OR ANY OF THE CONDITIONS ETC., AS AV AILABLE IN THE 3 ITA NO. 5647/DEL./2016 AMENDMENT CARRIED OUT IN PARA 10 OF CIRCULAR NO. 3/ 2018, DATED 20.08.2018, IS MADE OUT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (K.N. CHARY) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10 TH FEBRUARY, 2021. RK/- (D.T.D.S.) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI