ITO, New Delhi V. M/s. MNR Projects Pvt. Ltd., Mumbai

ITA 6529/DEL/2015

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5903 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 08-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. NO.6529/DEL/2015 ASSESSMENT YEAR: 2011-12 ITO, WARD-16(1)4R, NEW DELHI. VS. M/S. MNR PROJECTS PVT. LTD., 301, HERITAGE, HIRANANDANI, GARDEN, POWAI, MUMBAI, MAHARASHTRA. TAN/PAN: AAFCM2428L (APPELLANT) (RESPONDENT) APPELLANT BY: MS. RAKHI VIMAL, SR.D.R. RESPONDENT BY: SHRI LALIT MOHAN, CA DATE OF HEARING: 03 10 2019 DATE OF PRONOUNCEMENT: 03 10 2019 O R D E R PER AMIT SHUKLA, JM THE AFORESAID APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE IMPUGNED ORDER DATED 16.09.2015 PASSED BY COMMISSIONER OF INCOME TAX (APPEALS)-VI, DELHI FOR THE ASSESSMENT YEAR 2011-12. 2. AT THE OUTSET, IT HAS BEEN POINTED OUT BY THE LD . COUNSEL THAT THE TAX EFFECT ON THE DISPUTED ISSUE RAISED IN THE REVENUES APPEAL IS MUCH BELOW RS.50 LAC, AND THERE FORE, IN VIEW OF NEW CBDT CIRCULAR NO.17/2019, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. I.T.A. NO.6529/DEL/2015 2 3. LD. DR DID NOT DISPUTE THAT TAX EFFECT ON THE DI SPUTED ISSUE IS LESS THAN RS.50 LAC. 4. NOW THERE IS A LATEST CBDT CIRCULAR NO.17/2019 D ATED 8 TH AUGUST, 2019, WHEREIN THE CBDT HAS FURTHER ENHANCE D THE MONETARY LIMIT FOR FILING OF APPEAL BY THE DEPA RTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS.20 LACS TO RS.50 LACS. THE SAID CIRCULAR ALSO MAKE REFERENCE T O THE EARLIER CIRCULAR NO.3 OF 2018 DATED 11.07.2018 AND SPECIALLY STATES THAT AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENHANCE THE MO NETARY LIMIT FOR FILING OF THE APPEALS. THIS CIRCULAR IS N OT IN SUPERSESSION OF THE EARLIER CIRCULAR BUT ONLY AMEND S THE MONETARY LIMITS AS WELL AS GIVES CLARIFICATION WITH REGARD TO PARAGRAPH 5 OF THE EARLIER CIRCULAR. THIS INTER ALIA MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN THE EARLIER C IRCULAR NO.3 OF 2018 DATED 11.07.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT IS, IT WILL APPLY TO ALL THE PENDING APPEALS. FOR THE SAKE OF READY REFERENCE, THE LATEST CIRCULAR IS REPRODUCED HEREUNDER: F . NO. 279/MISC. 1 42 / 2007 -ITJ(PT.) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES JUDICIAL SECTION NEW DELHI 8 TH AUGUST 2019 SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS F OR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLA TE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIG ATION. I.T.A. NO.6529/DEL/2015 3 REFERENCE IS INVITED TO THE CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (THE BOA RD) AND ITS AMENDMENT DATED 20 TH AUGUST 2018 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL , HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPECIFI ED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRC ULAR AT PARA 5 MAY BE REMOVED. 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 LIMITS SPEC IFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY TH E FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FIL ED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIE D 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. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND CO MMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE F ILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/JUDGMENT INVOLVES MORE THAN ONE ASSESSE, EACH ASSESSE SHALL BE DEALT WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CON CERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME TAX ACT, 1961. S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) L. BEFORE APPELLATE TRIBUNAL 50,00,000 2. BEFORE HIGH COURT 1,00.00.000 3. BEFORE SUPREME COURT 2,00,00.000 I.T.A. NO.6529/DEL/2015 4 5. THUS, IN VIEW OF THE AFORESAID CIRCULAR, THE APP EAL OF THE REVENUE IS DISMISSED AS NON MAINTAINABLE BECAUSE TA X EFFECT IS BELOW RS.50 LAKHS. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD OCTOBER, 2019. SD/- SD/- [ANADEE NATH MISSHRA] [AMIT SHUKLA] [ACCOUNTANT MEMBER] JUDICIAL MEMBER DATED: 3 RD OCTOBER, 2019 PKK: