ACIT, Ludhiana V. Sh. Adesh Bajaj, Ludhiana

ITA 963/CHANDI/2014

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3693 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-07-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 07-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A , CHANDIGARH , ! ' # $ % & ' , ' BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO.963/CHD/2014 / ASSESSMENT YEAR : 2011-12 THE A.C.I.T., CIRCLE-II, LUDHIANA. SH.ADESH BAJAJ, C/O BLISS RESTAURANT, 26-30, SCF, RISHI NAGAR, LUDHIANA. ./PAN NO: ABUPB1536F /APPELLANT /RESPONDENT /ASSESSEE BY: SHRI SUDHIR SEHGAL, ADV. ! / REVENUE BY: SMT.CHANDERKANTA, SR.DR ' # $ /DATE OF HEARING : 28.08.2019 %&'( $ /DATE OF PRONOUNCEMENT: 29.08.2019 /ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER : THIS APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-I, LUDHIANA [(IN SHORT CIT(A)] DATED 29.8.2014 RELAT ING TO ITA NO.963/CHD/2014 A.Y. 2011-12 2 ASSESSMENT YEAR 2011-12, PASSED U/S 250(6) OF THE I NCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT). 2. THE ABOVE APPEAL WAS EARLIER HEARD ON 11.7.2019 BUT BEFORE THE ORDER COULD BE PRONOUNCED THE CBDT ISSUE D A CIRCULAR ENHANCING THE MONETARY LIMIT FOR FILING AP PEALS BY THE DEPARTMENT TO THE I.T.A.T. FROM RS.20 LACS TO R S.50 LACS VIDE ITS CIRCULAR NO.17/2019 DATED 8.8.2019. IN VIE W OF THE SAME AND SINCE THE TAX EFFECT INVOLVED IN THIS APPE AL APPEARED TO BE LESS THAN RS.50 LACS, THE APPEAL WAS FIXED FOR HEARING AGAIN FOR SEEKING CLARIFICATION FROM BOTH T HE PARTIES ON 28.8.2019. ON THE SAID DATE THE LD.COUNSEL FOR T HE ASSESSEE SUBMITTED A TAX CALCULATION WITH RESPECT T O THE APPEAL REFLECTING THE TAX EFFECT INVOLVED IN THE AP PEAL BEING LESS THAN RS.50 LACS. 3. THE LD. DR FAIRLY CONCEDED TO THIS FACT AND ALSO AGREED THAT THE APPEAL WAS LIABLE TO BE WITHDRAWN ON ACCOU NT OF THE RECENT CBDT CIRCULAR. 4. IN VIEW OF THE ABOVE, SINCE THE PRESENT APPEAL ADMITTEDLY STANDS COVERED WITHIN THE MONETARY LIMIT SPECIFIED BY THE CBDT FOR FILING THE APPEALS BY THE DEPARTMENT TO THE I.T.A.T., THE SAME STANDS DISMISS ED AS ITA NO.963/CHD/2014 A.Y. 2011-12 3 WITHDRAWN. MOREOVER, WE HAVE CONSIDERED THE IMPACT OF THE IMPUGNED CBDT CIRCULAR IN PENDING APPEALS IN THE CA SE OF ACIT VS. M/S ALCHEMIST LTD. IN ITA NOS. 1142 & 1143/CHD/2012 DATED 26.8.2019 WHEREIN WE HAVE HELD THAT THE SAID CIRCULAR APPLIES TO THE PENDING APPEALS AL SO. OUR DISCUSSION ON THIS ASPECT AT PARAS 4 AND 5 OF OUR O RDER 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 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/ REFERE NCES. 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. ITA NO.963/CHD/2014 A.Y. 2011-12 4 5. IN VIEW OF CBDT CIRCULAR NO.17/2019 DATED 8.8.20 19 READ ALNGWITH CIRCULAR NO.3/2018, THE PRESENT APPEA L OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 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. 7. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- # $ % & ' (DIVA SINGH) (ANNAPURNA GUPTA) ! ' /JUDICIAL MEMBER () ' /ACCOUNTANT MEMBER # /DATED: 29 TH AUGUST, 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