ACIT, Central circle-3, New Delhi V. Himanshu Singhal, New Delhi

ITA 7363/DEL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4169 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAUSHLENDRA TIWARI
• Assessee Lawyers: ASHWANI TANEJA; S.C. SANNIGRAHI
• Keywords: Retrospective amendment; Tax effect
• Section: 268A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D + SMC : NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER 1. ITA NO.5735/DEL./2017 (ASSESSMENT YEAR : 2010-11) ITO, WARD 3, VS. M/S. OM INVESTMENT, ROHTAK. H.NO.509/19, GREEN ROAD, SHAKTI NAGAR, ROHTAK (HARYANA). (PAN : AABFO8695C) ASSESSEE BY : SHRI ROHAN KHARE, ADVOCATE SHRI KARAN KUMAR, CA REVENUE BY : SHRI KAUSHLENDRA TIWARI, SENIOR DR 2. ITA NO.710/DEL./2018 (ASSESSMENT YEAR : 2011-12) ITO, WARD 4 (1), VS. KUMARI SANJANA RAM, GURGAON. H.NO.18/11, DLF CITY, PHASE-I, GURGAON. (PAN : ACRPR5819J) ASSESSEE BY : SHRI S.C. SANNIGRAHI, FCA REVENUE BY : SHRI KAUSHLENDRA TIWARI, SENIOR DR 3. ITA NO.841/DEL./2018 (ASSESSMENT YEAR : 2007-08) ACIT, CIRCLE 6 (1), VS. M/S. CHL SOUTH HOTELS LTD. , NEW DELHI. HOTEL CROWN PLAZA SURYA, NEW FRIENDS COLONY, NEW DELHI-110 025. (PAN : AACCC6152E) ASSESSEE BY : SHRI S.C. SANNIGRAHI, FCA REVENUE BY : SHRI KAUSHLENDRA TIWARI, SENIOR DR 2 4. ITA NO.7356/DEL./2017 (ASSESSMENT YEAR : 2014-15) ACIT, CENTRAL CIRCLE-3, VS. SMT. ANITA SINGHAL, NEW DELHI. R/O F 100, 1 ST FLOOR, RAJOURI GARDEN, NEW DELHI. (PAN : BAPPS5839B) ASSESSEE BY : NONE REVENUE BY : SHRI KAUSHLENDRA TIWARI, SENIOR DR 5. ITA NO.5723/DEL./2017 (ASSESSMENT YEAR : 2012-13) ACIT, CIRCLE 27 (2), VS. M/S. XAVIENT INFORMATION S YSTEMS NEW DELHI. (INDIA) PVT. LTD., PH 702, TENNESSEE TOWER, OMAXE FOREST, SECTOR 92, NOIDA (U.P.) (PAN : AAACZ0926H) ASSESSEE BY : SHRI ASHWANI TANEJA, ADVOCATE SHRI LAKSHAY GOYAL, ADVOCATE REVENUE BY : SHRI KAUSHLENDRA TIWARI, SENIOR DR 6. ITA NO.7363/DEL./2017 (ASSESSMENT YEAR : 2015-16) ACIT, CENTRAL CIRCLE-3, VS. SHRI HIMANSHU SINGAL,, NEW DELHI. R/O F 100, 1 ST FLOOR, RAJOURI GARDEN, NEW DELHI-110 027. (PAN : CNYPS3849G) ASSESSEE BY : NONE REVENUE BY : SHRI KAUSHLENDRA TIWARI, SENIOR DR (APPELLANT) (RESPONDENT) DATE OF HEARING : 16.08.2018 DATE OF ORDER : 16.08.2018 O R D E R 3 PER BENCH : THESE APPEALS BY THE REVENUE ARISE OUT OF THE ORDE RS PASSED BY THE CIT(A) IN RELATION TO THE CAPTIONED ASSESSME NT YEARS. 2. PERUSAL OF THE AFORESAID APPEALS FILED BY THE R EVENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFF ECT AS PER CBDT CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.20,00,000/- AND THIS FACTUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. THE LD. AUTHORIZED REPRESENTATIVES CONTENDED THAT THE APPEALS OF THE R EVENUE MAY BE DISMISSED IN THE LIGHT OF CBDT CIRCULAR (SUPRA). 3. WE HAVE HEARD PARTIES ON THE ISSUE IN CONTROVER SY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIR CULAR (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 AND THE RELEVANT PORTION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: SUBJECT: REVISION OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HI GH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT-MEASURES FOR REDUCING LITIGATION-REG. REFERENCE IS INVITED TO BOARDS CIRCULAR NO. 21 OF 2015 DATED 10.12.2015 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCOME-TAX MATT ERS) BEFORE 4 INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS / APPEALS BEFORE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE CIRCULAR, IT HAS BE EN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURT S AND SLPS/ APPEALS BEFORE SUPREME COURT KEEPING IN VIEW THE MONETARY LIMITS AND CONDITIONS SPECIFIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVE N HEREUNDER: S. NO. APPEALS/SLPS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 20,00,000/- 2 BEFOR E HIGH COURT 50,00,000/- 3 BEFORE SUPREME COURT 1,00,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMIT S PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECI DED ON MERITS OF THE CASE. 12. IT IS CLARIFIED THAT THE MONETARY LIMIT OF RS. 20 LAKHS FOR FILING APPEALS BEFORE THE ITAT WOULD APPLY EQUALLY TO CROS S OBJECTIONS UNDER SECTION 253(4) OF THE ACT. CROSS OBJECTIONS B ELOW THIS MONETARY LIMIT, ALREADY FILED, SHOULD BE PURSUED FO R DISMISSAL AS WITHDRAWN/ NOT PRESSED. FILING OF CROSS OBJECTIONS BELOW THE MONETARY LIMIT MAY NOT BE CONSIDERED HENCEFORTH. SI MILARLY, REFERENCES TO HIGH COURTS AND SLPS/ APPEALS BEFORE SUPREME COURT BELOW THE MONETARY LIMIT OF RS. 50 LAKHS AND RS. 1 CRORE RESPECTIVELY SHOULD BE PURSUED FOR DISMISSAL AS WIT HDRAWN/ NOT PRESSED. REFERENCES BEFORE HIGH COURT AND SLPS/ APP EALS BELOW THESE LIMITS MAY NOT BE CONSIDERED HENCEFORTH. 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CRO SS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/ APPEALS / CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSE D. 14. THE ABOVE MAY BE BROUGHT TO THE NOTICE OF ALL C ONCERNED. 15. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TA X ACT 1961 5 4. THE CONTENTION OF LD. SR. D.R. THAT HE NEEDS SO ME TIME TO PROCURE THE REPORT FROM THE ASSESSING OFFICER TO WO RK OUT THE TAX EFFECT, IS NOT TENABLE BECAUSE WHEN APPARENTLY, THE APPEAL IN QUESTION IS COVERED UNDER CBDT CIRCULAR NO.3/2018 D ATED 11 TH JULY, 2018 (SUPRA), THE REVENUE CANNOT IMPORT THE F ACTS WITHIN THE KNOWLEDGE OF THE ASSESSING OFFICER TO FURTHER PROLO NG THE MATTER. HOWEVER, IN CASE ANY FACT WHICH IS OTHERWISE NOT ON RECORD, WARRANTS THE RESTORATION OF THE PRESENT APPEAL, THE REVENUE IS AT LIBERTY TO APPROACH THE TRIBUNAL UNDER RELEVANT PRO VISIONS OF LAW. 5. IN VIEW OF THE CBDT CIRCULAR NO.3/2018 DATED 11 .07.2018 HAVING RETROSPECTIVE EFFECT AND WHAT HAS BEEN DISCU SSED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE AFORESAID APPEA LS ARE NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS TH AN RS.20,00,000/- HENCE, THE AFORESAID APPEALS FILED BY THE REVENUE I S HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON THIS 16 TH DAY OF AUGUST, 2018 AFTER THE CONCLUSION OF THE HEARING. SD/- SD/- (AMIT SHUKLA) (L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 16 TH DAY OF AUGUST, 2018 TS 6 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A). 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.