DDIT, New Delhi V. M/s. SMS Siemag AG, New Delhi

ITA 6332/DEL/2014

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8550 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 19-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Keywords: Tax effect

Judgement Text

1 ITA NO. 6332/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE SHRI R. K. PANDA ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 6332/DEL/201 4 (A.Y 2010-11) (THROUGH VIDEO CONFER ENCING) DDIT CIRCLE-2(2) NEW DELHI (APPELLANT) VS SMS SIEMAG AG (FORMERLY KNOWN AS SMS SIEMAG AG), C/O. MOHINDER PURI & CO. 1A-1D, VANDANA, 11, TOLSTOY MARG, NEW DELHI AADCS1173J (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 28/08/2014 PASSED BY DRP-III, NEW DELHI FOR ASSESSMENT YEAR 20 10-11. 2. AT THE OUTSET, IT WAS BROUGHT TO OUR NOTICE THA T THE TAX EFFECT INVOLVED IN THIS APPEAL BEING LESS THAN RS. 50 LACS, SQUARELY F ALLS WITHIN THE AMBIT OF CIRCULAR NO. 17/2019 DATED 08.08.2019 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES PRESCRIBING THE TAX EFFECT FOR PREFERRING APP EALS BEFORE TRIBUNAL BY THE REVENUE AND SUBSEQUENT CLARIFICATION ISSUED BY CBDT ON 20 TH AUGUST, 2019. 3. THE LD. AR SUBMITTED THAT THE TAX LIMIT IS RS. 3 6,42,119/- WHICH COMES UNDER THE PURVIEW OF CBDT CIRCULAR NO. 17/2019 DATE D 08.08.2019. AFTER PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE AMOUNT DISPUTED APPELLANT BY SH. PRABHA KANT, SR. DR RESPONDENT BY MISS. RICHA AGARWAL, CA DATE OF HEARING 12.08.2021 DATE OF PRONOUNCEMENT 12.08.2021 2 ITA NO. 6332/DEL/2014 BEFORE US IS BELOW THE TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 FOR PREFERRING APPEAL BEFO RE TRIBUNAL BY THE REVENUE. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DAT ED 08.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, LD. SR. DR COULD NOT POINT OUT AS TO HOW AND WHY SUCH A CIRCULAR IS NOT APPLICABLE TO THE FACTS OF THE CASE. WE FIND THAT THE SUBSEQUENT CLARIFICATION DATED 20.08.2019 MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PEND ING APPEALS ALSO. THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. HENCE, WE HOLD THAT THE APPEAL OF THE REVENUE DESERVE TO BE DISMISSED ON ACCOUNT OF LOW T AX EFFECT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 AND SUBSEQUENT CLARIFICATI ON ON 20.08.2019. ACCORDINGLY, ON ACCOUNT OF LOW TAX EFFECT CASE, WE DISMISS THIS APPEAL OF REVENUE IN LIMINE, WITHOUT GOING INTO THE MERITS OF THE CASE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT IN PRESENCE OF B OTH THE PARTIES ON THIS 12 TH DAY OF AUGUST, 2021. SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED : 12/08/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT 3 ITA NO. 6332/DEL/2014 ASSISTANT REGISTRAR ITAT NEW DELHI