ACIT, New Delhi V. Majestic Properties Pvt. Ltd., New Delhi

ITA 912/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6872 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 16-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, DELHI BENCH E, NEW DELHI BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO.912/DEL/2017 ASSESSMENT YEAR: 2012-13 ACIT, CENTRAL CIRCLE - 26, NEW DELHI (APPELLANT) VS. MAJESTIC PROPERTIES PVT. LTD., 1/18B, ASAF ALI ROAD, NEW DELHI. PAN- AAACM7158E (RESPONDENT) APPELLANT BY SH. ATIQ AHMED, SR. DR RESPONDENT BY SH. DEEPESH GARG, ADVOCATE DATE OF HEARING 17.09.2019 DATE OF PRONOUNCEMENT 31.10.2019 ORDER PER O.P. KANT, A.M.: THE PRESENT APPEAL BY THE REVENUE IS DIRECTED AGAI NST ORDER DATED 28.11.2016, PASSED BY LEARNED COMMISSIONER OF INCOM E TAX (APPEALS)-29, NEW DELHI, FOR ASSESSMENT YEAR 2012-13. 2. AT THE OUTSET, THE LEARNED SR. DR BROUGHT TO OUR A TTENTION THAT CBDT, VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST, 2019, HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY APPEAL BEFORE THE TRIB UNAL, 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 THE CBDT. ITA NO. 912/DEL/2017 2 3. WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17/2019 DA TED 08.08.2019, HAS ENHANCED THE MONETARY LIMIT FOR FILING OF APPEALS B Y THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS.20 LAKHS TO RS.50 LAKHS. THE SAID CIRCULAR ALSO MAKES REFERENCE TO THE EARLIER CIRCUL AR NO. 3/2018, DATED 11.7.2018 AND, ESPECIALLY STATES THAT AS A STEP TOW ARDS FURTHER MANAGEMENT OF LITIGATION, THE BOARD HAS DECIDED TO ENHANCE THE MO NETARY LIMIT FOR FILING OF THE APPEALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF TH E EARLIER CIRCULAR 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 THE EARLIER CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WILL 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 RE PRODUCED AS UNDER: SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPEL LATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREM E 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 APPE ALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE B EEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED TH AT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOV ED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF ITA NO. 912/DEL/2017 3 APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THR OUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE TABLE FOR MONETARY LIMITS SPECIFIE D IN PARA 3 OF THE CIRCULAR SHALL 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 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 EF FECT 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 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 SPEC IFIED 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 CAS E OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTH ORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND CO MMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE ITA NO. 912/DEL/2017 4 TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MO RE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEP ARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FRO M THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CONC ERNED. 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 APPLY TO A LL PENDING APPEALS. THUS, IN VIEW OF THE AFORESAID CIRCULAR, THE APPEAL OF THE R EVENUE IS DISMISSED AS NON- MAINTAINABLE AS THE TAX EFFECT INVOLVED IN THE APPE AL IS BELOW RS.50 LAKHS. 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 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. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 31 OCTOBER, 2019. SD/- SD/- (BHAVNESH SAINI) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31 OCT., 2019 *AKS*