DCIT, Circle, Mandi Gobindgarh Hq, Sirhind V. M/s Sahil Concast (P) Ltd., Mandi Gobindgarh

ITA 815/CHANDI/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9483 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 24-05-2019
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH , ! ' # $ % & ' ( , ' BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO.815/CHD/2019 / ASSESSMENT YEARS : 2013-14 THE D.C.I.T., CIRCLE MANDI GOBINDGARH, HQ. SIRHIND. M/S SAHIL CONCAST (P) LTD., AMLOH ROAD, MANDI GOBINDGARH. ./PAN NO: AAMCS2652K /APPELLANT /RESPONDENT /ASSESSEE BY : SHRI DEEPAK AGGARWAL, ADV. ! / REVENUE BY : SHRI AKARSHAN SINGH, CIT DR ' # $ /DATE OF HEARING : 04.09.2019 %&'( $ /DATE OF PRONOUNCEMENT: 23.09.2019 /ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER : THE ABOVE APPEAL HAS BEEN PREFERRED BY THE REVENUE CHALLENGING THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX APPEALS, PATIALA [(IN SHORT REFERRED TO AS CIT( A)] DATED 22.3.2019 RELATING TO ASSESSMENT YEAR 2013-14, PASS ED U/S 250(6) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS ACT). ITA NO.815/CHD/2019 A.Y. 2013-1 4 2 2. AT THE OUTSET IT WAS POINTED OUT THAT THE CBDT VIDE ITS RECENT CIRCULAR NO.17/2019 DATED 8.8.2019 HAD ENHANCED THE MONETARY LIMIT FOR FILING THE APPEALS BY THE DEPARTMENT BEFORE THE I.T.A.T. FROM RS.20 LACS TO R S.50 LACS AND THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL FELL WITHIN THIS SPECIFIED LIMIT, AND THUS WAS LIABLE TO BE WIT HDRAWN BY THE DEPARTMENT AS PER THE SAID CIRCULAR. 3. THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT I NVOLVED IN THE ABOVE APPEAL DID NOT EXCEED RS.50 LACS.. 4. WE HAVE HEARD THE PARTIES. THE MODIFICATION MADE BY THE RECENT CBDT CIRCULAR NO.17/2019 HAS BEEN CONSID ERED BY THE ITAT ,CHANDIGARH BENCH IN THE CASE OF ACIT V S. M/S ALCHEMIST LTD. IN ITA NO.1142 & 1143/CHD/2012 DATED 26.12.2019, WHEREIN AFTER GOING THROUGH THE CONTENT S OF CBDT CIRCULAR NO.17/2019 IT WAS NOTED THAT IT HAS E FFECTED ENHANCEMENT IN MONETARY LIMITS FOR FILING THE APPEA LS BY THE DEPARTMENT TO RS.50 LACS AND ALSO THAT THE SAID ENHANCEMENT APPLIED TO PENDING APPEALS ALSO WHEN R EAD ALONGWITH EARLIER CBDT CIRCULAR NO.3/2018. THE FIND INGS IN THAT CASE ARE AS UNDER: 4. WE HAVE CONSIDERED THE CONTENTIONS OF THE PARTIES BEFORE US AND HAVE ALSO GONE THROUGH THE CBDT CIRCULAR NO.17/2019 DATED 8/8/19, AND ITA NO.815/CHD/2019 A.Y. 2013-1 4 3 HAVE NOTED THE ENHANCEMENT IN MONETARY LIMITS FOR FILING APPEAL BY THE DEPARTMENT TO THE ITAT TO RS.50 LACS FROM THE EARLIER LIMIT OF RS. 20 LACS WHICH WAS SPECIFIED VIDE CIRCULAR NO.3/2018.WE HAVE ALSO NOTED THAT THE CBDT HAS VIDE THIS CIRCULAR MODIFIED ONLY PARA 3 AND 5 OF ITS EARLIER CIRCULAR NO.3/2018 LEAVING ALL OTHER PARAS INTACT. PARA 13 OF THE EARLIER CIRCULAR DEALT WITH APPLICABILITY OF THE CIRCULAR RETROSPECTIVELY TO PENDING APPEALS ALSO AND READ AS UNDER: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTI VELY TO PENDING SLPS/ APPEALS/CROSS OBJECTIONS/ REFERENC ES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 5. SINCE THIS PARA HAS NOT BEEN MODIFIED BY THE RECENT CIRCULAR, THE ENHANCED MONETARY LIMITS SPECIFIED IN THE RECENT CIRCULAR WILL APPLY TO THE PENDING APPEALS ALSO. IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 (SUPRA) READ ALONGWITH CIRCULAR NO.3/2018,THE PRESENT APPEALS OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 5. ACCORDINGLY, IN VIEW OF THE CBDT CIRCULAR NO.17/2019 READ ALONGWITH CBDT CIRCULAR NO.3/2018, THE PRESENT APPEAL OF THE REVENUE STAND DISMISSED AS WITHDRAWN. 6. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT(A) ON MERITS. THE LEGAL ISSUE RAISED BY THE REVENUE IS BEING LEFT OPEN TO BE ADJUDICATED IN AN APPROPRI ATE CASE. ITA NO.815/CHD/2019 A.Y. 2013-1 4 4 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- $ % & ' ( (DIVA SINGH) (ANNAPURNA GUPTA) ! ' /JUDICIAL MEMBER )* ' /ACCOUNTANT MEMBER $ /DATED: 23 RD SEPTEMBER, 2019 * * &) *+,+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' - / CIT 4. ' - ( )/ THE CIT(A) 5. +./ 0 , $0 , 123/4 / DR, ITAT, CHANDIGARH 6. /35# / GUARD FILE &) ' / BY ORDER, / ASSISTANT REGISTRAR