DCIT, New Delhi V. M/s. Sharsh Finance & Investment Company Pvt. Ltd., New Delhi

ITA 6297/DEL/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6968 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2012-2013
• Appeal Filed On: 27-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BERNWAL
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI G.D. AGR A WAL , VICE PRESIDENT , AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO. 6297 /DEL /20 15 [ ASSESSMENT YEAR : 20 12 - 13 ] THE DY. C.I.T VS. M/S SHARSH FINANCE & INVESTMENT CENTRAL CIRCLE 25 COMPANY PVT. LTD NEW DELHI B - 5/13, AZAD APARTMENT SRI AUROBINDA MARG , NEW DELHI PAN : A AHCS 1410 L ITA NO. 6 054 /DEL /20 15 [ ASSESSMENT YEAR: 20 06 - 07 ] THE I.T .O VS. M/S ADORATION SECURITIES & WARD - 1(3) FINANCE PVT. LTD NEW DELHI 18 / 2 , WAZIRPUR INDUSTRIAL AREA DELHI PAN : A AACA 7535 M ITA NO. 5951 /DEL /20 15 [ ASSESSMENT YEAR: 2010 - 11] THE I.T.O VS. VINOD KUMAR GARG WARD - 7(1) D - 35, MULTAN NAGAR NEW DELHI NEW DELHI PAN : A FUPG 6987 R ITA NO S . 5430 & 5431 /DEL /20 15 [ ASSESSMENT YEAR: 2010 - 11 & 2011 - 12] THE A.C.I.T. VS. BAWEJA EXPORTS LTD CENTRAL CIRCLE - 3 D - 37, DEFENCE COLONY NEW DELHI NEW DELHI PAN : AABCB 6318 G 2 2 ITA NO. 5771 /DEL /20 15 [ ASSESSMENT YEAR: 2011 - 12] THE I.T.O VS. ADVANCE INFORMATICS WARD - 28(1) D - 1070, NEW FRIENDS COLONY NEW DELHI NEW DELHI PAN : A AFFA 3516 Q APPELLANT BY : MS. ANIMA BERNWAL, SR. DR RESPONDENT BY : NONE ITA NO. 5765 /DEL /20 15 [ ASSESSMENT YEAR: 2009 - 10] THE A. C.I. T VS. M/S TIKAULA SUGAR MILLS LTD CIRCLE 2 25 - B, GHER KHATTI, NEW MANDI MUZAFFARNAGAR MUZAFFARNAGAR PAN : A ACCT 5815 B APPELLANT BY : MS. ANIMA BERNWAL, SR. DR RESPONDENT BY : SHRI AKHILESH KUMAR, ADV ITA NO. 57 72 /DEL /20 15 [ ASSESSMENT YEAR: 2009 - 10] THE A. C.I.T VS. M/S BARNALA STEEL INDUSTRIES LTD CIRCLE 1 FLAT NO. 17, JASWANT APARTMENT MUZAFFARNAGAR JAMIA NAGAR, OKHLA VILLAGE, DELHI PAN : AABCB 2772 Q [APPELLANT] [RESPONDENT] APPELLANT BY : MS. ANIMA BERNWAL, SR. DR RESPONDENT BY : SHRI ANKIT GUPTA, ADV. DATE OF HEARING : 08 .0 2 .2016 DATE OF PRONOUNCEMENT: 1 9 .0 2 .2016 3 3 ORDER PER BENCH: - THESE ARE A BUNCH OF APPEALS FILED BY THE REVENUE DIRECTED AGAINST SEPARATE ORDER S OF THE LD. CIT(A) PERTAINING TO DIFFERENT ASSESSMENT YEARS. SINCE THE ISSUES INVOLVED IN THESE APPEALS ARE SIMILAR AND THE APPEALS WERE HEARD TOGETHER, SO THESE ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. THESE APPEALS HAVE BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LA KHS FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 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 AP PEAL SHALL BE FILED BEFORE THE I TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS IN STRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4 4 4. THE LEARNED SR. DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL S CAN BE WITHDR AWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FURTHER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBS EQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. THE LEARNED COUNSEL S FOR THE ASSESSEE APPEARING IN A COUPLE OF CASES , ON T HE OTHER HAND, STATED THAT THE C IRCULAR WAS SQ UARELY APPLICABLE TO THE PRESENT APPEAL S OF THE REVENUE WHILE IN SIX OTHER CASES, NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE. HOWEVER, THE APPEAL S W ERE HEARD EX PARTE AS THE CBDT CIRCULAR IS BENEFICIAL TO THEM. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THESE APPEALS BY THE REVENUE IS BELOW RS. 10.00 LA KH S 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 5 5 ASSESSING OFFICER FINDS THAT T HE TAX EFFECT IS ABOVE RS.10 LAKHS OR IN ANY OTHER MANNER, THE C IRCULAR IS NOT APPLICABLE IN VIEW O F EXCEPTIONS CULLED OUT IN THE C IRCUL AR, 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 A CCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL 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 LA KH S. 7. KEEPING IN VI EW 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 ALL THE APPEAL S IS LESS THAN RS.10 LA KHS . 6 6 8 . IN THE RES ULT, ALL THE APPEAL S OF THE REVENUE STAND DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 1 9 .0 2 .2016. S D / - S D / - ( G.D. AGRAWAL ) (C.M. GARG) VICE PRESIDENT JUDICIAL MEMBER DATED: 1 9 T H FEBRUARY , 2015 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI