ITO, Jind V. Sh. Surjit Singh Nain, Jind

ITA 596/CHANDI/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5462 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH .., ! '# #$ %, & '( BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, J M ITA NO. 596/CHD/2017 ASSESSMENT YEAR : 2011-12 THE ITO WARD-1, JIND SH. SURJIT SINGH NAIN S/O SH. TARA CHAND, CHOOTU RAM COLONY, NARWANA DISTT. JIND PAN NO: ARCPS1848P APPELLANT RESPONDENT CROSS OBJECTION NO. 13/CHD/2018 (IN ITA NO. 596/CHD/2017) ASSESSMENT YEAR : 2011-12 SH. SURJIT SINGH NAIN S/O SH. TARA CHAND, CHOOTU RAM COLONY, NARWANA DISTT. JIND THE ITO WARD-1, JIND PAN NO: ARCPS1848P APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI VIBHOR GARG, CA $(' + , / REVENUE BY : SHRI MANJIT SINGH, CIT DR ITA NO. 172/ASR/2018 ASSESSMENT YEAR : 2014-15 M/S TAJ TRAVELS PRIVATE LTD. (SINCE AMALGAMATED WITH M/S METRO ECO GREEN LTD.) SCO 54-55, SECTOR-9, CHANDIGARH DCIT CIRCLE-2, BATHINDA PAN NO: AABCT5108J APPELLANT RESPONDENT & %)* + , / ASSESSEE BY : SHRI ASHWANI KUMAR, CA $(' + , / REVENUE BY : SHRI MANJIT SINGH, CIT DR ITA NO. 398/CHD/2018 ASSESSMENT YEAR : 2014-15 THE DY. CIT C-6(1), MOHALI, PUNJAB M/S TAJ TRAVELS PV T. LTD. BADAL ROAD, BATHINDA-PUNJAB PAN NO: AABCT5108J 2 APPELLANT RESPONDENT !' ASSESSEE BY : SHRI ASHWANI KUMAR, CA #!' REVENUE BY : SHRI MANJIT SINGH, CIT DR $ %! & DATE OF HEARING : 21/08/2019 '()*! & DATE OF PRONOUNCEMENT : 23/08/2019 './ ORDER PER N.K. SAINI, VICE PRESIDENT ALL THE ABOVE APPEALS FILED BY THE DEPARTMENT AND CROSS OBJECTION FILED BY THE ASSESSEE ARE ARISING OUT OF THE SEPARATE ORDERS PASS ED BY DIFFERENT CIT(A) AS PER THE DETAILS GIVEN BELOW: APPEAL NUMBER & ASSESSMENT YEAR DATE OF CIT/ CIT(A) ORDER OFFICE OF CIT/ CIT(A) ITA NO. 596/CHD/2017 CO NO. 13/CHD/2018 A.Y. 2011-12 31/01/2017 CIT(A), ROHTAK ITA NO. 172/ASR/2018 A.Y. 2014-15 17/01/2018 CIT(A), BATHINDA ITA NO. 398/CHD/2018 A.Y. 2014-15 17/01/2018 CIT(A), BATHINDA 2. DURING THE COURSE OF HEARING IT WAS A COMMON CONTENTIO N OF THE LD. COUNSELS PRESENT ON BEHALF OF THE DIFFERENT ASSESSEES THAT THESE A PPEALS FILED BY THE DEPARTMENT ARE NOT MAINTAINABLE IN VIEW OF THE CIRCULAR NO. 17/201 9 DT. 08/08/2019 ISSUED BY CBDT WHEREIN THE MONETARY LIMIT FOR FILING THE APPEALS BY T HE DEPARTMENT BEFORE THE ITAT HAS BEEN INCREASED TO RS. 50,00,000/- FROM RS. 20,00,000/ -. 3. IN THE RIVAL SUBMISSIONS THE LD. CIT DR SUBMITTE D THAT THE CIRCULAR NO. 17/2019 DT. 08/08/2019 IS NOT CLEARLY RETROSPECTIVE IN AS MUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT THE SAID MODIFICATION SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. IT WAS STATED THAT THE AFORESAID SENTENCE CLEARLY GIVES AN IMPRESSION THAT THE SAID CIRCULAR IS APPLICABLE AFTER THE DATE MENTIONED THERE IN AND TH EREAFTER THE DEPARTMENTAL APPEALS WHICH COME IN THE SPECIFIED TAX EFFECT LIMIT WILL N OT BE FILED. THE LD. COUNSELS APPEARING ON BEHALF OF THE ASSESSEES VEHEMENTLY OPPOSED THE C ONTENTION OF THE LD. CIT(DR) AND 3 THEY WERE UNANIMOUS IN THEIR ARGUMENTS THAT THE CIRCULAR MUST BE HELD TO HAVE RETROSPECTIVE APPLICATION AND MUST EQUALLY APPLY TO T HE PENDING APPEALS AS WELL, SINCE THE PRESENT CIRCULAR ONLY MODIFIES THE MONETARY LIMIT E ARLIER MENTIONED IN CIRCULAR NO. 3 OF 2018 DT. 11/07/2018. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIE S AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PR ESENT CASE IT IS AN ADMITTED FACT THAT THE CBDT VIDE CIRCULAR NO. 17/2019 ENHANCED THE MO NETARY LIMIT TO RS. 50,00,000/- FOR NOT FILING THE APPEAL BY THE DEPARTMENT BEFORE THE ITAT, EARLIER THIS LIMIT WAS SPECIFIED AT RS. 20,00,000/- IN THE ORIGINAL CIRCULAR NO. 03/2018 DT. 11/07/2018. NOW VIDE THE NEW CIRCULAR NO. 17/2019 DT. 08/08/2019 THE TAX EF FECT LIMIT HAS BEEN ENHANCED AND THIS NEW CIRCULAR DT. 08/08/2019 READ AS UNDER; CIRCULAR NO. - 17 OF 2019 DATE - 8TH AUGUST 2019 FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS /APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDU CING LITIGATION. CIRCULAR NO. 3/2018 DATED 11TH JULY 2018 HAS BEEN R EPLACED BY CIRCULAR NO. 17/2019 DATED 8TH AUGUST 2019 TO ENHANCE MONETARY LIMITS FOR FILI NG OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS /APPEALS BEFORE SUPREME COURT FOR REDUCING LITIGATION. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) [PREVIOUS LIMIT) MONETARY LIMIT (RS.) (REVISED LIMIT) BEFORE APPELLATE TRIBUNAL 20,00,000 50,00,000 BEFORE HIGH COURT 50,00,000 1,00.00.000 BEFORE SUPREME COURT 1,00,00,000 2.00.00,000 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, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSME NT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX E FFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT. NO APPEAL SHALL BE FILE D IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND CO MMON ISSUES IN MORE THAN ONE 4 ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPEC T OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMI T IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 5. FROM THE CONTENTS OF THE AFORESAID CIRCULAR IT IS CR YSTAL CLEAR THAT THE ANOMALY IN THE EARLIER CIRCULAR NO. 3 OF 2018 DT. 11/07/2018 AT PAGE 5 HAS BEEN REMOVED AND THE LIMIT SPECIFIED IN PARA 3 OF THE EARLIER CIRCULAR HAS BEEN ENHANCED. IT IS ALSO NOT IN DISPUTE THAT THE EARLIER CIRCULAR WAS APPLICABLE RET ROSPECTIVELY TO THE PENDING APPEALS / CROSS OBJECTIONS AND PARA NOS. 12 & 13 OF THE ORIGI NAL CIRCULAR NO. 03/2018 DT. 11/07/2018 READ AS UNDER: 12. IT IS CLARIFIED THAT THE MONETARY LIMIT OF RS. 20 L AKHS FOR FILING APPEALS BEFORE THE IT AT WOULD APPLY EQUALLY TO CROSS OBJECTIONS UNDER SECTI ON 253(4) OF THE ACT. CROSS OBJECTIONS BELOW THIS MONETARY LIMIT, ALREADY FILED, SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESSED. FILING OF CROSS OBJECTIONS BELOW THE MONET ARY LIMIT MAY NOT BE CONSIDERED HENCEFORTH. SIMILARLY, REFERENCES TO HIGH COURTS AN D SLPS/ APPEALS BEFORE SUPREME COURT BELOW THE MONETARY LIMIT OF RS. 50 LAKHS AND RS. 1 CRORE RESPECTIVELY SHOULD BE PURSUED FOR DISMISSAL AS WITHDRAWN/ NOT PRESSED. REFERENCES BEF ORE HIGH COURT AND SLPS/ APPEALS BELOW THESE LIMITS MAY NOT BE CONSIDERED HENCEFORTH . 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OB JECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SCIHCS/TRIBUNAL AND IT SHALL ALSO APP LY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEA LS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 6. NOW THE CBDT SIMPLY ENHANCED THE MONITORY LIMIT AND THE DIRECTIONS GIVEN EARLIER VIDE PARA NOS. 12 & 13 OF THE CIRCULAR NO. 3 / 2018 DT. 11/07/2018 ARE STILL INTACT WHICH IS CRYSTAL CLEAR FROM THE LANGUAGE OF THE CIRCUL AR NO. 17/2019 WHEREIN IT HAS BEEN MENTIONED THAT THERE IS ENHANCEMENT OF MONETARY LIMIT AND A MENDMENT TO CIRCULAR NO. 3 /2018 FOR REDUCING THE LITIGATION. WE THEREFORE ARE OF THE CONFIRMED VIEW THAT THE AMENDED CIRCULAR NO. 17/2019 NOW ISSUED BY THE CBDT IS ALSO APPLICABLE TO THE PENDING APPEALS AS HAS BEEN SPECIFIED IN PARA 13 OF TH E ORIGINAL CIRCULAR NO. 3/2018 DT. 11/07/2018 AND THAT THE DEPARTMENT OUGHT NOT HAVE FILED TH E APPEALS BEFORE THE ITAT WHERE THE TAX EFFECT IS RS. 50 LACS OR LESS. FOR THE A FORESAID VIEW WE ARE ALSO FORTIFIED BY THE DECISION DT. 14/08/2019 OF THE COORDINATE BENCH I.E; ITAT, AHMEDABAD BENCH A AHEMDABAD IN ITA NO. 1398/AHD/2004 FOR THE A.Y. 1998-9 9 IN THE CASE OF ITO, WARD-3(2) AHMEDABAD VS. DINESH MADHAVLAL PATE, AHMEDABAD & OTHERS W HEREIN IT HAS BEEN HELD IN PARA 5 TO 7 AS UNDER: 5 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVI NG PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HESITATION IN H OLDING THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEAL S TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8 TH 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 T O REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM TH E FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APP EALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETAR Y 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 FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDE R 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 ISSUES I N THE CASE OF EVERY ASSESSEE. IF IN THE CASE OF AN ASSESSEE, THE DISPUT ED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RE SPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE 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 ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHE R, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTH ORITY 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 M ONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEP ARATELY' 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 INT ACT INCLUDES PARAGRAPH 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 SH ALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS/ CROSS OBJ ECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 6 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APP EALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. 7. IN VIEW OF THE AFORESAID DISCUSSION ALL THE ABOVE APPEALS FILED BY THE DEPARTMENT ARE DISMISSED. 8. AS REGARDS TO APPEAL FILED BY THE ASSESSEE IN IT A NO. 172/ASR/2018 AND C.O. NO. 13/CHD/2018 THE LD. COUNSELS FOR THE ASSESSEES SUBMITTE D THAT THEY HAVE THE INSTRUCTIONS TO WITHDRAW THE APPEAL / CROSS OBJECTION. 9. IN VIEW OF THAT THE APPEAL OF THE ASSESSEE IN ITA N O. 172/ASR/2018 AND C.O. NO. 13/CHD/2018 ARE DISMISSED AS WITHDRAWN. 10. IN THE RESULT, APPEALS OF THE REVENUE AS WELL AS C ROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 23/08/2019 ) SD/- SD/- #$ % .., (SANJAY GARG ) ( N.K. SAI NI) & '(/ JUDICIAL MEMBER ! / VICE PRESIDENT AG DATE: 23/08/2019 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE (+ $ BY ORDER, ; # ASSISTANT REGISTRAR