DCIT, New Delhi V. M/s. Mayar Health Resorts Ltd., New Delhi

ITA 6351/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7619 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 16-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 29-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJANA SENIOR
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.6351/DEL./2013 (ASSESSMENT YEAR : 2009-10) DCIT, CIRCLE 6 (1), VS. M/S. MAYAR HEALTH RESORTS LTD., NEW DELHI. PLOT NO.A, BASANT LOK COMMUNITY CENTRE, VASANT VIHAR, NEW DELHI 110 057. (PAN : AADCM6414C) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI GAURAV JAIN, ADVOCATE REVENUE BY : SHRI P. DAM KANUNJANA, SENIOR DR DATE OF HEARING : 16.05.2016 DATE OF ORDER : 16.05.2016 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 6 (1), NEW DELHI (HEREINAFTER REFERRED TO AS THE R EVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 26.03.2013 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)- IX, NEW DELHI QUA THE ASSESSMENT YEAR 2009-10. 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.6351/DEL./2013 2 CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APP EAL IN CASE THE TAX EFFECT IS LESS THAN RS.10,00,000/- AND THIS FAC TUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. THE LD. AR CO NTENDED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT CIRCULAR (SUPRA). 3. WE HAVE HEARD PARTIES ON THE ISSUE IN CONTROVER SY 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: '3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVE N HEREUNDER: S.NO. APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 10,00,000 2 BEFORE HIGH COURT 20,00,000 3 BEFORE SUPREME COURT 25,00,000 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCR IBED ABOVE. FILING OF APPEAL IN SUCH CASES 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 AB OVE MAY BE WITHDRAWN / NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEAL WAS FILED.' ITA NO.6351/DEL./2013 3 4. THE CONTENTION OF LD. SR. DR THAT HE NEEDS SOME TIME TO PROCURE THE REPORT FROM THE ASSESSING OFFICER TO WO RK OUT THE TAX EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEAL IN QUESTION IS COVERED UNDER CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 (SUPRA), THE REVENUE CANNOT IMPORT T HE FACTS WITHIN THE KNOWLEDGE OF THE ASSESSING OFFICER TO FU RTHER PROLONG THE MATTER. HOWEVER, IN CASE, ANY FACT WHICH IS OTH ERWISE NOT ON RECORD, WARRANTS THE RESTORATION OF THE PRESENT APP EAL, THE REVENUE IS AT LIBERTY TO APPROACH THE TRIBUNAL UNDER RELEVA NT PROVISIONS OF LAW. 5. IN VIEW OF THE CBDT CIRCULAR NO.21 DATED 10.12. 2015 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.10,00,000/- HENCE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 16 TH DAY OF MAY, 2016. SD/- SD/- (N.K. SAINI) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 16 TH DAY OF MAY, 2016 TS ITA NO.6351/DEL./2013 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-IX, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.