DCIT, New Delhi V. Vivek Contracts (P) Ltd, New Delhi

ITA 7088/DEL/2014

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1233 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 31-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V K BAJAJ; RAVINDER BAJAJ
• Keywords: Tax effect
• Section: 268A; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C , NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTA N T MEMBER ITA NO S.7087 & 7088 /DEL/ 2014 ASSESSMENT YEAR S : 2006 - 07 & 2009 - 10 DCIT, CIRCLE - 26(2), NEW DELHI VS. M/S. VIVEK CONTRACTS (P) LTD., D - 39, PANDAV NAGAR, NEW DELHI PAN : AAACV0506F (APPELLANT) (RESPONDENT) APPELLANT BY SHRI RAGHUNATH, SR.DR RESPONDENT BY SHRI V.K. BAJAJ, CA & SHRI RAVINDER BAJAJ, CA ORDER PER O.P. KANT, A.M.: THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAINST TWO DIFFERENT ORDERS , EACH DATED 22.09.2014 , PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 19, NEW DELHI, FOR ASSESSMENT YEAR 2006 - 07 AND 2009 - 10 RESPECTIVELY . 2. AT THE OUTSET, THE LEARNED SR. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST, 2019 HAS DECIDED THAT THE R EVENUE WOULD NOT PREFER ANY APPEAL BEFORE THE TRIBUNAL, IF THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE R EVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. DATE OF HEARING 28.08.2019 DATE OF PRONOUNCEMENT 03.09.2019 2 ITA NO S . 7087 & 7088/DEL/2014 3. NOW , THERE IS A LATEST CBDT CIRCULAR NO. 17 /2019 DATED 08.08.2019, WHEREIN THE CBDT HAS FURTHER ENHANCED THE MONETARY LIMIT FOR FILING OF APPEAL S BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS. 20 LAKHS TO RS. 50 LAKHS . THE SAID CIRCULAR ALSO MAKE S REFERENCE TO T HE EARLIER CIRCULAR NO. 3/2018, DATED 11.7.2018 AND , E SPECIALLY STATES THAT AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, T HE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE APPEALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE E ARLIER CIRCULAR BUT ONLY AMENDS 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 CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WIL L APPLY MUTATIS MUTANDIS INCLUDING THAT, IT WILL APPLY TO ALL THE PENDING APPEALS. FOR THE SAKE OF READY REFERENCE, RELEVANT PORTION OF THE LATEST CIRCULAR , I.E. , CIRCULAR NO. 17/2019 , DATED 08.08.2019 , IS REPRODUCED AS UNDER: SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION. - REFER ENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME T AX APPELLATE TRIBUNAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION. IT HA S BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME - TAX CASES BE ENHANCED FURTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED 3 ITA NO S . 7087 & 7088/DEL/2014 ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIED IN PARA 3 OF THE CIRCULAR SH ALL 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 WHERE 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 EFFECT 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 ISSU ES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN A SSESSMENT 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 APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MOR E THAN ONE ASSESSMENT YEAR, 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. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASS ESSEE SHALL BE DEALT WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CONCERNED. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME - TAX ACT, 1961. 4. FURTHER, CBDT VIDE C IRCULAR DATED 20 TH AUGUS T, 2019 ( F. NO. 279/19 - 93/2018 - ITJ ) HAS CLARIFIED THAT IT WILL APPLY TO ALL PENDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIRCULAR, THE APPEAL S OF THE REVENUE ARE DISMISSED AS NON - MAINTAINABLE AS THE TAX EFFECT INVOLVED IN THE APPEALS IS BELOW RS. 50 LAKHS . HOWEVER, IT IS MADE 4 ITA NO S . 7087 & 7088/DEL/2014 CLEAR THAT THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THE ORDER, IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMIT OF RS.50,00,000 / - OR ANY OF THE CONDITIONS ETC., AS AVAILABLE IN THE AMENDMENT CARRIED OUT IN PARA 10 OF CIRCULAR NO. 3/2018, DATED 20.08.2018, IS MADE OUT. 6. IN THE RESULT, BOTH THE APPEAL S OF REVENUE ARE DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 3 R D SEPTEMBER , 2019. S D / - S D / - [ SUDHANSHU SRIVASTAVA ] [O.P. KANT] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 3 R D SEPTEMBER , 2019. RK/ - [D.T.D.S] COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI