ACIT, Ludhiana V. M/s Aradhna Knitwears Pvt. Ltd., Ludhiana

ITSSA 8/CHANDI/2004

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5020 (ITAT-CHANDIGARH)
• Duration Of Justice: 15 year(s) 6 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-06-2019
• Assessment Year: misc
• Appeal Filed On: 05-02-2004
• 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, JM & SMT.ANNAPURNA GUPTA, AM ./ ITSS NO. 8/CHD/2004 BLOCK PERIOD : 20.07.1995 TO 24.06.1999 THE ACIT, CIRCLE-II, LUDHIANA. VS M/S ARADHNA KNITWEARS P.LTD., 186, JANAKPURI, LUDHIANA. PAN /TAN NO: AABCA4128M APPELLANT RESPONDENT & ./ ITSS NO. 12/CHD/2004 BLOCK PERIOD : 01.04.1989 TO 24.06.1999 THE ACIT, CIRCLE-VII, LUDHIANA. VS M/S ARADHNA FABRICS (P)LTD., 144, INDL. AREA A, LUDHIANA. PAN /TAN NO: AABCA4127E APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : NONE ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NO. 694/CHD/2016 $% ASSESSMENT YEAR : 2008-09 THE ACIT, CIRCLE, PATIALA. VS M/S DIVINE COLONIZERS P.LTD., OFFICERS ENCLAVE, HOUSE NO. 50, PHASE-II, KHERI GUJJRAN, PATIALA. PAN /TAN NO: AACCD1572B APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI SUDHIR SEHGAL ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NO. 1098/CHD/2017 $% ASSESSMENT YEAR : 2010-11 ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 2 OF 9 THE DCIT, CIRCLE 1(1), CHANDIGARH. VS SHRI GAURAV DHIR, HOUSE NO. 269, SECTOR 10-A, CHANDIGARH. PAN /TAN NO: AETPD9706R APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI SUDHIR SEHGAL ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NO. 584/CHD/2018 $% ASSESSMENT YEAR : 2012-13 THE DCIT, CIRCLE-1, LUDHIANA. VS M/S BBF INDUSTRIES LTD., 181, BEANTPURA, LUDHIANA. PAN /TAN NO: AAACB9276E APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI SUDHIR SEHGAL ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NO. 910/CHD/2018 $% ASSESSMENT YEAR : 2013-14 THE ITO, WARD-4, PATIALA. VS SHRI BHUPINDER SINGH KHAROUD, C/O AJIT FUELS, VILLAGE & P.O. BARAN, SIRHIND ROAD, PATIALA. PAN /TAN NO: AQTPK6531F APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, C.A. ! ' # DATE OF HEARING : 20.08.2019 & C.O. 45/CHD/2018 IN ./ ITA NO. 910/CHD/2018 $% ASSESSMENT YEAR : 2013-14 ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 3 OF 9 SHRI BHUPINDER SINGH KHAROUD, C/O AJIT FUELS, VILLAGE & P.O. BARAN, SIRHIND ROAD, PATIALA. VS THE ITO, WARD-4, PATIALA. PAN /TAN NO: AQTPK6531F APPELLANT RESPONDENT ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, C.A. REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NO. 1348 TO 1351/CHD/2018 $% A.Y.: 2013-14 TO 2016-17 THE DCIT, CIRCLE, MANDI GOBINDGARH, HEADQUARTER-SIRHIND. VS M/S AMBER ENTERPRISES (INDIA) P.LTD., C-1, PHASE-II, FOCAL POINT, RAJPURA. PAN /TAN NO: AABCA3456E APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI SUDHIR SEHGAL ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NO. 267/CHD/2019 $% ASSESSMENT YEAR: 2015-16 THE DCIT, CIRCLE 6(1), MOHALI. VS M/S G NEXT MEDIA PVT.LTD., PLOT NO. F-137, INDL. AREA, PHASE-VIIB, MOHALI. PAN /TAN NO: AACCG7242B APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI VINEET KRISHAN ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NO. 387/CHD/2019 $% ASSESSMENT YEAR: 2016-17 THE DCIT, CENTRAL CIRCLE-II, LUDHIANA. VS M/S HAPPY STEELS P.LTD., KANGANWAL ROAD, LUDHIANA. ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 4 OF 9 PAN /TAN NO: AACCG7242B APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI ASHWANI KUMAR, CA ! ' # DATE OF HEARING : 20.08.2019 & ./ ITA NOS. 493 & 494/CHD/2019 $% ASSESSMENT YEAR: 2013-14, 2014-15 THE ITO, WARD, BADDI. VS M/S KINKO COMPUTER INDUSTRIES, KHASRA NO. 494/444/33, VILLAGE BILLANWALI, LABANA, BADDI. PAN /TAN NO: AAJFK6184C APPELLANT RESPONDENT REVENUE BY : SMT. MEENAKSHI VOHRA, SR.DR ASSESSEE BY : SHRI SUDHIR SEHGAL ! ' # DATE OF HEARING : 20.08.2019 &'()%$ # D ATE OF PRONOUNCEMENT : 22.08.2019 )-/ ORDER PER DIVA SINGH THESE 15 APPEALS AND CROSS OBJECTIONS FILED BY DIF FERENT ASSESSING OFFICERS QUESTION THE CORRECTNESS OF THE RELIEF GRANTED BY THE CIT(A) IN THE RESPECTIVE YEARS. THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS. 50 LACS AS A RESU LT OF THIS FACT IN VIEW OF THE LATEST CBDT CIRCULAR DATED 08.08.2019 T HESE APPEALS AND CROSS OBJECTIONS HAVE BEEN FIXED BY THE REGISTR Y. THE CROSS OBJECTIONS TAKEN UP FOR HEARING EMANATE FROM THE OR DERS WHEREIN RELIEF HAS BEEN GRANTED BY THE CIT(A) AND THESE BEI NG SUPPORTIVE OF THE ORDERS PASSED ARE TAKEN UP FOR HEARING ACCORDIN GLY. ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 5 OF 9 2. AS NOTED, THE PARTIES WERE PUT TO NOTICE OF THE CBDT CIRCULAR DATED 08.08.2019 WHEREIN THE CBDT HAS SPECIFIED THE MONETARY LIMIT FOR AN APPEAL FILED BY THE REVENUE BEFORE THE ITAT AS RS. 50 LACS. THE PARTIES WERE HEARD IN THE BACKGROUND OF THE SAID CBDT CIRCULAR. 3. IN EACH OF THESE APPEALS, THE REVENUE HAS NOT DI SPUTED THAT THE TAX EFFECT INVOLVED IS LESS THAN THE STIPULATED LIMIT. THE RESPECTIVE COUNSELS PRESENT IN THE APPEALS HAVE REL IED UPON THE SAID CIRCULAR AS INDICATED IN THE CAUSE TITLE ABOVE. FE W APPEALS AS INDICATED IN THE CAUSE TITLE HAVE BEEN HEARD IN THE ABSENCE OF ANY REPRESENTATION ON THE PART OF THE ASSESSEE-RESPONDE NT AS THE TAX EFFECT INVOLVED HAD BEEN BELOW THE STIPULATED LIMIT WHICH POSITION WAS FAIRLY CONCEDED BY THE LD. SR.DR. 4. THE LEAD CASE IN THIS BATCH OF APPEALS IS ITSS 8/CHD/2004 WHEREIN THE ASSESSEE RESPONDENT HAS REMAINED NON RE PRESENTED. THE REVENUES APPEAL HAS BEEN PENDING ADJUDICATION BEFORE THE ITAT SINCE 2004. THE PRESENT APPEAL HAVING BEEN FILED O N 05.02.2004 WHICH CAME UP FOR HEARING FOR THE FIRST TIME ON 21. 09.2005 HAS REMAINED PENDING FOR ONE REASON OR THE OTHER AND OR DER COULD NOT BE PASSED EVEN THOUGH THE RECORD SHOWS THAT HEA RING HAD CONCLUDED ON 07.08.2013, HOWEVER, IT WAS THEREAFTER RELEASED FOR SOME CLARIFICATION ON 20.09.2013 AND ULTIMATELY RELEASED FOR FRESH HEARING. THEREAFTER, HEARING WAS AGAIN CONCL UDED ON 03.02.2016 AND AGAIN RELEASED FOR CLARIFICATION ON 28.04.2016. ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 6 OF 9 THE RECORD SHOWS THAT THE APPEAL THEREAFTER CAME UP FOR HEARING ON DIFFERENT DATES WHEREIN ADJOURNMENTS WER E SOUGHT BY ONE SIDE OR THE OTHER FOR VARIOUS REASONS WHEREI N ULTIMATELY ON 23.01.2018 IT WAS INFORMED TO THE BENCH THAT THE RELEVANT RECORD WAS NOT TRACEABLE BY THE AO. FOR READY REFER ENCE, THE RELEVANT ORDERSHEET ENTRY IS EXTRACTED HEREUNDER : 4.1 THE ADJOURNMENTS AGAIN CONTINUED TO BE SOUGHT B Y ONE PARTY OR THE OTHER. IN THE SAID BACKDROP WE NOTE T HAT THE AFORESAID CBDT CIRCULAR PUTS AN END TO THIS LITIGAT ION WHERE RELIEF GRANTED BY THE CIT(A) IS UNDER CHALLENGE OVE R THE YEARS. TO QUOTE FROM THE ORDER DATED 14.08.2018 IN ITA 1398/AHD/2004 IN THE CASE OF ITO VS DINESH MADHAVLAL PATEL AND 62 7 OTHERS, THE ITAT ADDRESSING THE BACKDROP OF THE AFORESAID CBDT CIRCULAR DATED 08.08.2019 WAS PLEASED TO NOTE WHAT IT MEANS, IN PLAIN WORDS, IS THAT WHEN A COMMISSIONER (APPEALS) GIVES THE TAXPAYER ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 7 OF 9 TAX RELIEF OF UPTO RS 50 LAKHS IN AN APPEAL IN AN A SSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANT ED BY THE COMMISSIONER (APPEALS) CANNOT BE CHALLENGED BEFORE THIS TRIBUNAL WE HAVE SEEN THAT THE TAX INVOLVED IS MUCH BELOW THE STATED LIMIT, ACCORDINGLY IN TERMS OF THE AFORE SAID CIRCULAR, THE LD. SR.DR CONSIDERING THE FACTS POSED NO OBJECT ION TO THE DISMISSAL OF REVENUES APPEAL. 4.2 SIMILAR IS THE POSITION IN ALL THE OTHER APPEAL S WHICH HAVE BEEN TAKEN FOR HEARING. ACCORDINGLY, IN VIEW OF TH E ABOVE STATED POSITION, WHERE THERE IS NO DISPUTE THAT THE TAX IN VOLVED IN EACH OF THESE APPEALS IS LESS THAN RS. 50 LACS, THE APPEALS ARE DISMISSED AS NON MAINTAINABLE. IT IS APPROPRIATE TO TAKE NOTE O F THE AFORESAID ORDER DATED 14.08.2019 PASSED IN THE CASE OF ITO, W ARD 3(2) AHMEDABAD VS DINESH MADHAVLAL PATEL AND 627 OTHERS WHEREIN CONSIDERING THE AFORESAID CBDT CIRCULAR, 628 DEPART MENTAL APPEALS AND CROSS OBJECTIONS WERE DISMISSED HOLDING AS UNDE R : 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAV ING PERUSED THE MATERIAL ON RECORD, WE DO NOT HAVE SLIGHTEST OF HESITATION IN HOLDING T HAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEALS TO BE FILED IN FUTU RE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THE RETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS I S EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH AUGUST 2019: 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATI ON. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED FURTHER THROUGH 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 L IMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50,00,000 ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 8 OF 9 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 AUTHOR ITIES FOR EACH ASSESSMENT YEAR VIS- A-VIS WHERE COMPOSITE ORDER FOR MORE THAN ONE ASSES SMENT YEARS IS PASSED. PARA 5 OF THE CIRCULAR IS SUBSTITUTED BY THE FOLLOWING PARA: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES 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 SPECIFIE D IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPEC IFIED IN PARA 3. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE AS SESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO A PPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. I N CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE A SSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 O F 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAP H 13 OF THE AFORESAID CIRCULAR WHICH IS AS FOLLOWS : 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROS S OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNA L AND IT SHALL ALSO APPLY RETROSPECTIVELY TO ENDING SLPS/ APPEALS/ CRO SS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SP ECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7 . IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS T O BE FILED HENCEFORTH. 8. LEARNED COMMISSIONER (DR) THEN SUBMITS LIBERTY M AY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEM ONSTRATED THAT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY IN CLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT T HE APPELLANTS SHALL BE AT LIBERTY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APP EALS SO SUMMARILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUC H CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY OTHER REASON, AND WE WILL TA KE APPROPRIATE REMEDIAL STEPS IN THIS REGARD. 9. IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE A PPEALS STAND DISMISSED AS WITHDRAWN. AS THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MA INTAINABLE AND AS ALL THE RELATED CROSS- OBJECTIONS OF THE ASSESSEE ARISE ONLY AS A RESULT O F THOSE APPEALS AND MERELY SUPPORT THE ORDER OF THE CIT(A), THE CROSS OBJECTIONS FILED BY THE AS SESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. ORDERED, ACCORDINGLY. ITSS 8,12/2004, ITA 694/2016, ITA 1098/2017, ITA 584,910/2018 CO 45/2018,ITA 1348 TO 1351/2018 ITA 267&387/ 2019 & ITA 493&494/2019 PAGE 9 OF 9 5. ACCORDINGLY, IN THE LIGHT OF THE AFORESAID CBDT CIRCULAR AND THE AFORESAID DECISION OF THE AHMEDABAD BENCH OF TH E ITAT, THE APPEALS OF THE REVENUE ARE DISMISSED AS NOT MAINTAI NABLE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSE D AS INFRUCTUOUS. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 6. IN THE RESULT, ALL THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND AUGUST,2019. SD/- SD/- ( $ % & ' ( ) ( ! ) (ANNAPURNA GUPTA) (DIVA SINGH) )* #/ ACCOUNTANT MEMBER ' #/ JUDICIAL MEMBER POONAM ' + ,- . -% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ! / / CIT 4. ! / ( )/ THE CIT(A) 5. -01 2 , # 2$ , 34516 / DR, ITAT, CHANDIGARH 6. 15 7' / GUARD FILE ' + ! / BY ORDER, 8 / ASSISTANT REGISTRAR