DCIT, New Delhi V. M/s. Kay Jay Fincap Ltd., New Delhi

ITA 6657/DEL/2014

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0243 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL KUMAR MALOTRA
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH A : NEW DLEHI ] BEFORE SHRI G.S. PANNU, VICE PRESIDENT A N D SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA. NOS. 6657 & 6658/DEL/2014 ASSESSMENT YEARS : 2010-11 & 2011-12. DEPUTY CIT, M/S KAY JAY FINCAP LTD. CIRCLE : 14 (1), VS. [FORMERLY KAY JAY AUTO LTD.), NEW DELHI. SACHIDANAND FARM HOUSE, KHASRA NO.95/8/9/10/11/12, KISHAN GARH VILLAGE, NEAR DDA SPORTS COMPLEX, NEW DELHI 110 070. PAN : AAACK0163H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ANIL KUMAR MALOTRA, C. A.; DEPARTMENT BY : MS. RAKHI VIMAL, SR. D. R.; DATE OF HEARING : 28/02/2020 DATE OF ORDER : 02/03/2020 O R D E R PER K. NARSIMHA CHARY, J.M. : THESE TWO APPEALS BY THE REVENUE ARE FILED AGAINST TWO SEPARATE ORDERS PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-VIII, NEW DELHI, FOR ASSESSMENT YEARS 2010-11 AND 2011-12. THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OFF, FOR THE SAKE OF CONVENIENCE, BY THIS CONSOLIDATED ORDER. PAGE | 2 2. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT TAX EFFECT INVOLVED IN THESE APPEALS IS BELOW THE PRESCRIBED LIMIT OF RS.50 LAKHS, AS FIXED BY THE CBDT AND REQUESTED TO DISMISS BOTH THE REVENUES APPEALS ON ACCOUNT OF LOW TAX EFFECT. 3. PERUSAL OF THE AFORESAID APPEALS FILED BY THE REVENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFFECT AS PER CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.50,00,000/- AND THIS FACTUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIRCULAR (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. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENCH OF THE TRIBUNAL IN CASE OF DINESH MADHAVLAL PATEL [TS-469-ITAT-2019(AHD)] 2019- TIOL-1556-ITAT-AHM DATED 14 TH AUGUST, 2019 HAS ALREADY DECIDED THE ISSUE AS TO THE APPLICABILITY OF THE CAPTIONED CIRCULAR TO THE PENDING APPEALS IN AFFIRMATIVE AND WHAT HAS BEEN DISCUSSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEAL IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.50,00,000/- HENCE, BOTH THE AFORESAID APPEALS FILED BY THE REVENUE ARE HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. HOWEVER, IN CASE, BOTH THE PRESENT APPEALS ARE FOUND TO BE MAINTAINABLE AT ANY STAGE FOR ANY TECHNICAL PAGE | 3 REASONS, THE DEPARTMENT SHALL BE AT LIBERTY TO SEEK RECALL OF THIS COMMON ORDER UNDER RELEVANT PROVISIONS OF LAW. 5. IN THE RESULT, BOTH THE APPEALS FILED BY THE REVENUE, ARE DISMISSED BEING INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT ON : 02/03/2020 SD/- SD/- ( G. S. PANNU ) (K. NARASIMHA CHARY) VICE PRESIDENT JUDICIAL MEMBER DATED : _ 02/03/2020 . *MEHTA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI PAGE | 4 DATE OF DICTATION 28/02/2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 28/02/2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 02/03/2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 02/03/2020 DATE ON WHICH THE FAIR ORDER IS PLA CED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 02/03/2020 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS 02/03/2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 02/03/2020 DATE ON WHICH THE FILE GOES TO THE BENCH C LERK 02/03/2020 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER