DCIT, Central Circle- I, Gurgaon V. Aman Sharma, New Delhi

ITA 6979/DEL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3951 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 02-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOEL
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DLEHI BEFORE SHRI R.K. PANDA, JUDICIAL MEMBER AND SHRI NARASIMHA CHARY, JUDICIAL MEMBER ITA NO. 6979/DEL/2018 ASSESSMENT YEARS 2013-14 DCIT, CENTRAL CIRCLE-1, VS. AMAN SHARMA, GURGAON. 16, AMULYAM, THE GREENS, RAJOKRI, NEW DELHI. PAN : AAQPS9820C CO NO. 26/DEL/2019 (IN ITA NO. 6979/DEL/2018 ) ASSESSMENT YEARS 2013-14 AMAN SHARMA, VS. DCIT, CENTRAL CIRCLE-1, 16, AMULYAM, THE GREENS, GURGAON. RAJOKRI, NEW DELHI. (APPELLANTS) (RESPONDENTS) ASSESSEE BY : NONE REVENUE BY : SH. SANJAY GOEL, CIT-DR DATE OF HEARING : 28.10.2020 DATE OF PRONOUNCEMENT: 28.10.2020 ORDER PER BENCH: THE APPEAL BY THE REVENUE AND CROSS OBJECTION BY TH E ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 20.08.2018 PASSED BY THE LD. CIT(A)-3, GURGAON FOR FOR THE ASSESSMENT YEAR 2013-14. 2 2. AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST 2019 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. THEREFORE, HE PL EADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CB DT. NONE IS PRESENT ON BEHALF OF THE ASSESSEE. 3. WE HAVE HEARD THE CONTENTION AND PERUSED THE MAT ERIAL ON RECORD. WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17/2019 DAT ED 08 TH AUGUST 2019 HAS ENHANCED THE MONETARY LIMIT FOR FILING THE APPEAL B Y THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER :- 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION, IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THR OUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1. BEFORE APPELLATE TRIBUNAL 50.00,000 2. BEFORE HIGH COURT 1.00.00.000 3. BEFORE SUPREME COURT 2.00,00.000 3. FURTHER, WITH A VIEW TO PROVIDE PARITY IN FILING OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGHER APPELLATE AUTHORITIES FOR EACH ASSESSMENT YEAR VIS-A-VIS WHER E COMPOSITE ORDER FOR MORE THAN ONE ASSESSMENT YEARS IS PASSED, PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: '5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE. THE DISPUTED ISSUES ARISE IN M ORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RE SPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX E FFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONET ARY' LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR Y EARS IN WHICH TH E TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. 3 FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE TH AN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RE SPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFF ECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. I N CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE TH AN ONE ASSESSEE. EACH ASSESSEE 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-TA X ACT, 1961. 4. WE FIND THAT THE TAX EFFECT INVOLVED IN THE APPE AL OF THE REVENUE IS BELOW RS. 50 LAKHS. THERE IS NO DISPUTE THAT THE B OARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 50 LA KHS. THE ISSUE OF APPLICABILITY OF THE ABOVE CIRCULAR TO PENDING APPE ALS HAS BEEN DECIDED BY THE COORDINATE BENCH IN DINESH MADHAVLAL PATEL [TS-469- ITAT-2019(AHD)] 2019- TIOL-1556-ITAT-AHM DATED 14 TH AUGUST, 2019 . 5. IN VIEW OF THE ABOVE, CIRCULAR NO. 17/2019 DATED 08/08/2019 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. SINCE THE APPEAL OF THE REVENUE IS FO UND NOT MAINTAINABLE AS DISCUSSED ABOVE, THE CROSS OBJECTION OF THE ASSESSE E BECOMES INFRUCTUOUS AND IS ACCORDINGLY DISMISSED. 6. WE MAY, HOWEVER, ADD THAT CERTAIN TIMES INSTANCE S STATED IN PARA NO. 10 OF THE CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018 ARE NOT DISCERNIBLE FROM THE ASSESSMENT AND APPELLATE ORDERS. WE, THERE FORE, GIVE LIBERTY TO 4 REVENUE IN SUCH CASES WHERE THE INSTANCES STATED IN PARA NO 10 OF THE CIRCULAR EXIST, TO FILE MISCELLANEOUS APPLICATION W ITH EVIDENCES. 7. IN THE RESULT, APPEAL FILED BY THE REVENUE AND C ROSS OBJECTION FILED BY ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/10/2020 SD/- SD/- (K. NARASIMHA CHARY) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28/10/2020 AKS