ITO, Panipat V. Sh. Karun Kumar, Panipat

ITA 5882/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6851 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 31-01-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 17-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SB GUPTA
• Assessee Lawyers: S K JAIN
• Keywords: Tax effect
• Section: 244A; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER ITA N O. 5882 /DEL/201 6 A SSESSMENT YEAR : 20 0 9 - 10 ITO WARD - 2, PALIKA BUILDING, G.T. ROAD, PANIPAT VS. KARUN KUMAR PROP. SAI & SHARMA CONSTRUCT ION COMPANY, SHOP NO. 29, LAL TANKY MARKET, MODEL TOWN, PANIPAT PAN : A IVPK7011N (APPELLANT) (RESPONDENT) RESPONDENT BY : SHRI S.K. JAIN , SR. DR APPELLANT BY : SHRI S.B. GUPTA, ADVOCATE DATE OF HEARING : 3 1 - 0 1 - 201 7 DATE OF PR ONOUNCEMENT : 31 - 0 1 - 201 7 O R D E R PER S.V. MEHROTRA, A.M : 1 . THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDER OF THE CIT (A), KARNAL DATED 21.9.2016 A.Y. 2009 - 10 . 2. A T THE TIME OF HEARING THE LD. COUNSEL FOR THE ASSESSEE FILED I NCOME C OMPUTA TION FOR M TO DEMONSTRATE THAT THE TAX EFFECT IN THE APPEAL FILED BY DEPARTMENT IS ONLY RS. 7,20,154/ - AND , THUS , LESS THAN RS. 10 LAC . T HE CHART IS REPRODUCED HEREUNDER: - 2 ITA NO.5882/DEL/2016 ASSESS MENT YEAR : 2009 - 10 INCOME TAX, EDU.CESS & SURCHARGE INTT. U/S 234A INTT. U/S 234B INTT. U/S 234C INTT. U/S 234D INTT. U/S 244A TOTAL TAX DUE 681895 +68190 +22503 - 321912 - 76053 30151 1200704 TAX CHARGED U/S 143(1) 49936 + 1498 - - - - - 51434 BALANCE TAX 6 31959 + 68190 + 21005 1 321912 - 76053 30151 1149270 3 . FROM THE AFOREMENTIONED COMPUTATION, IT IS EVIDENT THAT THE TAX EFFECT IS LESS THAN RS. 10 LACKHS. A S PER CBDT CIRCULAR NO.21/ 2015 D ATED 10 TH DECEMBER 2015 , THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE T HE TAX EFFECT IS LESS THAN RS.10,00,000/ - AND THIS FACTUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. THE LD. A.R. CONTENDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT CIRCULAR (SUPRA) . 4 . I HAVE HEARD PARTIES ON THE ISSUE IN CONTROVERSY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIRCULAR (SUPRA) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISED AND THE RELEVANT PORTI O N OF THE AFOR ESAID CIRCULAR IS EXTRACTED AS UNDER: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPE LLATE TRIBUNAL 10,00,000 2 BEFORE HIGH COURT 20,00,000 3 BEFORE SUPREME COURT 25,00,000 3 ITA NO.5882/DEL/2016 ASSESS MENT YEAR : 2009 - 10 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CA SES IS TO BE DECIDED ON MERITS OF THE 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 INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' 5 . IN VIEW OF THE CBDT CIRCULAR NO.21 DATED 10.12.2015 HAVING R ETROSPECTIVE EFFECT AND WHAT HAS BEEN D ISCUSSED ABOVE, I AM OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFF ECT I.E. LESS THAN RS.10,00,000/ - . HE NCE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BECOME I NFRUCTUOUS. 6 . IN THE RE SULT, THE ASSESSEE S APPEAL IS DISMISSED. 7 . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF JANUARY , 201 7 . SD/ - SD/ - (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED : 31 - 0 1 - 201 7 . NARENDER COPY OF ORDER TO : - 1 ) THE APPELLANT; 2 ) THE RESPONDENT; 3 ) THE DRP - I , NEW DELHI ; 4 ) THE DR, I.T.A.T., NEW DELHI ; BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT , NEW DELHI 4 ITA NO.5882/DEL/2016 ASSESS MENT YEAR : 2009 - 10 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 31. 1.2017 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 31.1.2017 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCE MENT ON SR. PS/PS 7 FILE SENT TO BENCH CLERK SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 DATE ON WHICH FILE GOES TO THE A.R. 10 DATE OF DISPATCH OF ORDER