DCIT, Moradabad V. M/s. Ranjan Overseas Inc., Moradabad

ITA 782/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5831 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 09-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Keywords: Competent authority; Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA ACCOUNTANT MEMBER , AND SHRI N.K. CHOUDHRY , JUDICIAL MEMBER ITA NO. 782 / DEL/201 5 [ASSESSMENT YEAR: 20 11 - 12 ] THE DY .C.I.T VS. RAJAN OVERSEAS INC RANGE II LAKRI FAZALPUR MORADABAD MORADABAD PAN : AACFD 6576 G [APPELLANT] [RESPONDENT] DATE OF HEARING : 0 7 .0 6 .2018 DATE OF PRONOUNCEMENT : 0 7 .0 6 .2018 ASSESSEE BY : SHRI PIYUSH KAUSHIK, ADV REVENUE BY : SHRI RAVI KANT GUPTA , SR. DR ORDER PER N.K. BILLAIYA , ACCOUNTANT MEMBER, THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 28 . 11 .2014 OF COMMISSIONER OF INCOME TAX [APPEALS] , MORADABAD AND RELATES TO ASSESSMENT YEAR 20 11 - 12 . 2 2. THIS APPEAL IS FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LAKH FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 26 8A(1) OF THE INCOME - TAX ACT. 3. THE CBDT IN ITS CIRCULAR NO. 21/2015 DATED 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE I TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKHS MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT - DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED T HAT APPEAL CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FURTHER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENC E IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 3 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, STATED THAT THE CIRCULAR IS SQUARELY A PPLICABLE TO THE PRESENT APPEAL OF THE REVENUE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN TH I S APPEAL BY THE REVENUE IS BELOW RS. 10.00 LACS AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEAL PARTICULARLY BECAUSE THE PENDING APPEAL IS COVERED BY CIRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS.10 LACS OR IN ANY OTHER MANN ER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORDER WHICH THE TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE F ORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN TH IS APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUES, INVOLVED IN TH IS APPEAL, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN TH OSE YEARS IS MORE THAN RS.10 LAKH S. 4 7. WE ARE ALSO INCLINED TO AGREE WITH THE CONTENTION OF THE LD. DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS A PPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS. 10 LAKHS. WITH THESE DIRECTIONS WE DEEM IT PROPER TO DISMISS THE PRESENT APPEAL IN THE LIGHT OF THE CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER 2015. ACCORDINGLY, WITHOUT GOING INTO MERITS OF THE CASE, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. THE ORDER IS PR ON OUNC ED IN THE OPEN COURT ON 0 7 .0 6 .2018. SD/ - SD/ - [ N.K. CHOUDHRY ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 7 TH JUNE , 2018 VL/ 5 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI