ACIT, New Delhi V. Smt. Ruchita Bhatt, New Delhi

ITA 6319/DEL/2015

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5229 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 30-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P SINGH
• Assessee Lawyers: RAVI GUPTA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A : NEW DELHI) BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.6319/DEL./2015 (ASSESSMENT YEAR : 2012-13) ACIT, RUCHITA BHATT CC-17, ROOM NO. 103, VS. M-16, GR. KAILASH, HALL NO.-1, 1 ST FLOOR PART-I ARA CENTRE, NEW DELHI EXTN. JHANDEWALAN NEW DELHI (PAN : AHSPD7095B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. RAVI GUPTA, ADV. & RAJESH JAIN, CA REVENUE BY : SHRI S.P.SINGH, SR. DR DATE OF HEARING : 17.10.2018 DATE OF ORDER : 18.10.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ASSISTANT COMMISSIONER OF INCOME-TA X, CC-17, NEW DELHI (HEREINAFTER REFERRED TO AS THE REVENUE ) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORD ER DATED 22.09.2015 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)- 27, NEW DELHI QUA THE ASSESSMENT YEAR 2012-13. 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFF ECT AS PER ITA NO.6319/DEL./2015 2 CBDT CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.20,00,000/- AND THIS FACTUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. THE LD. A.R. CONTE NDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT CIRCULAR (SUPRA). 3. WE HAVE HEARD THE PARTIES ON THE ISSUE IN CONTR OVERSY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIR CULAR (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 PORTION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: SUBJECT: REVISION OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HI GH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT-MEASURES FOR REDUCING LITIGATION-REG. REFERENCE IS INVITED TO BOARDS CIRCULAR NO. 21 OF 2015 DATED 10.12.2015 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCOME-TAX MATT ERS) BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS / APPEALS BEFORE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE CIRCULAR, IT HAS BE EN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURT S AND SLPS/ APPEALS BEFORE SUPREME COURT KEEPING IN VIEW THE MONETARY LIMITS AND CONDITIONS SPECIFIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVE N HEREUNDER: ITA NO.6319/DEL./2015 3 S. NO. APPEALS/SLPS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 20,00,000/- 2 BEFORE HIGH COURT 50,00,000/- 3 BEFORE SUPREME COU RT 1,00,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMIT S PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECI DED ON MERITS OF THE CASE. 12. IT IS CLARIFIED THAT THE MONETARY LIMIT OF RS. 20 LAKHS FOR FILING APPEALS BEFORE THE ITAT WOULD APPLY EQUALLY TO CROS S OBJECTIONS UNDER SECTION 253(4) OF THE ACT. CROSS OBJECTIONS B ELOW THIS MONETARY LIMIT, ALREADY FILED, SHOULD BE PURSUED FO R DISMISSAL AS WITHDRAWN/ NOT PRESSED. FILING OF CROSS OBJECTIONS BELOW THE MONETARY LIMIT MAY NOT BE CONSIDERED HENCEFORTH. SI MILARLY, REFERENCES TO HIGH COURTS AND SLPS/ APPEALS BEFORE SUPREME COURT BELOW THE MONETARY LIMIT OF RS. 50 LAKHS AND RS. 1 CRORE RESPECTIVELY SHOULD BE PURSUED FOR DISMISSAL AS WIT HDRAWN/ NOT PRESSED. REFERENCES BEFORE HIGH COURT AND SLPS/ APP EALS BELOW THESE LIMITS MAY NOT BE CONSIDERED HENCEFORTH. 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CRO SS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS / CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D. 14. THE ABOVE MAY BE BROUGHT TO THE NOTICE OF ALL C ONCERNED. 15. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TA X ACT 1961 4. IN VIEW OF THE CBDT CIRCULAR NO.3/2018 DATED 11 .07.2018 HAVING RETROSPECTIVE EFFECT AND WHAT HAS BEEN DISCU SSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEA L IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS TH AN RS.20,00,000/- HENCE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. HOWEVER, IN CASE, THE ITA NO.6319/DEL./2015 4 PRESENT APPEAL IS FOUND TO BE COVERED BY THE REVISE D GUIDELINES ISSUED BY THE CBDT VIDE LETTER F.NO.279/MISC.142/20 07-ITJ (PT) DATED 20 TH AUGUST, 2018, THE DEPARTMENT SHALL BE AT LIBERTY T O SEEK RECALL OF THIS ORDER UNDER RELEVANT PROVISIONS OF L AW. ORDER PRONOUNCED IN OPEN COURT ON THIS 18 TH OCTOBER, 2018. SD/- SD/- (R.K.PANDA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 18/10/ 2018 BR COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXVI, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI. DATE OF DICTATION 18 .10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18 .10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 18 .10.2018 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 18 .10.2018 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 18 .10.2018 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 23 .10.2018 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 23 .10.2018 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT ITA NO.6319/DEL./2015 5 REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER