ACIT, CIRCLE, PANIPAT V. ABHITEX INTERNATIONAL, PANIPAT

ITA 7152/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0755 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 29-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: A NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.7152/DEL./2017 ASSESSMENT YEAR: 2013-14 ACIT, CIRCLE PANIPAT VS. M/S. ABHITEX INTERNATIONAL, PALIWAL NAGAR, G.T. ROAD, PANIPAT PAN :AACFA2394P (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THE PRESENT APPEAL BY THE REVENUE IS DIRECTED AGAIN ST ORDER DATED 06.09.2017, PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-KARNAL, FOR ASSESSMENT YEAR 2013-14. 2. NONE PRESENT FOR THE APPELLANT. AT THE OUTSET, THE LEARNED SR. DR BROUGHT TO OUR ATTENTION THAT CBDT, VIDE CIRCULA R 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 PLEADED THAT T HE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF TH E CBDT. APPELLANT BY SHRI SOHAIL MALIK, SR.DR RESPONDENT BY NONE DATE OF HEARING 22.12.2020 DATE OF PRONOUNCEMENT 22.12.2020 2 ITA NO. 7152/DEL./2017 3. WE HAVE HEARD LEARNED SR. DR THROUGH VIDEO CONFERE NCING AND PERUSED THE RELEVANT RECORD. WE FIND THAT THE C BDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019, HAS ENHANCED THE MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTM ENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS.20 LAKHS TO R S.50 LAKHS. THE SAID CIRCULAR ALSO MAKES REFERENCE TO THE EARLI ER CIRCULAR NO. 3/2018, DATED 11.7.2018 AND, ESPECIALLY STATES THAT AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE APP EALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE EARLIER CIRC ULAR BUT ONLY AMENDS THE MONETARY LIMITS AS WELL AS GIVES CLARIFI CATION WITH REGARD TO PARAGRAPH 5 OF THE EARLIER CIRCULAR. THIS , INTER ALIA, MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN TH E EARLIER CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT, IT WILL APPLY TO ALL THE PENDING A PPEALS. FOR THE SAKE OF READY REFERENCE, RELEVANT PORTION O F THE LATEST CIRCULAR, I.E., CIRCULAR NO. 17/2019, DATED 08.08.2 019, IS REPRODUCED AS UNDER: SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPE LLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DA TED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 20 18 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBU NAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT H AVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIV ED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE RE MOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR 3 ITA NO. 7152/DEL./2017 FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED F URTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTION ED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS F OLLOWS: 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 RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT S PECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF A N ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHE R, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDE R/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASS ESSEE 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. 4. FURTHER, CBDT VIDE CIRCULAR DATED 20 TH AUGUST, 2019 (F. NO. 279/19-93/2018-ITJ), HAS CLARIFIED THAT IT WILL APP LY TO ALL PENDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIR CULAR, THE 4 ITA NO. 7152/DEL./2017 APPEAL OF THE REVENUE IS DISMISSED AS NON-MAINTAINA BLE AS THE TAX EFFECT INVOLVED IN THE APPEAL IS BELOW RS.50 LA KHS. HOWEVER, IT IS MADE CLEAR THAT THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THE ORDE R, IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMI T OF RS.50,00,000/- OR ANY OF THE CONDITIONS ETC., AS AV AILABLE IN THE AMENDMENT CARRIED OUT IN PARA 10 OF CIRCULAR NO. 3/ 2018, DATED 20.08.2018, IS MADE OUT. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND DECEMBER, 2020. SD/- SD/- (SUCHITRA KAMBLE) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 22 ND DECEMBER, 2020. RK/- (D.T.D.S.) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI