ACIT, New Delhi V. M/s. Saarthak Vanijya India Ltd., Kolkata

MA 23/DEL/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2780 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-09-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 15-09-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 05-09-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEARNED SENIOR
• Keywords: Tax effect; Tax effect

Judgement Text

Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’: NEW DELHI BEFORE, SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER MA No.23/Del/2020 (Arising out of ITA No.6399/Del/2020) ASSESSMENT YEAR 2014-15 ACIT Central Circle-28 New Delhi-110 055 Vs. M/s Saarthak Vanijya India Pvt. Ltd. 11, Goenka Lane Shivatalla Street Kolkata West Bengal-700 007 PAN-AACCR 1635F (Appellant) (Respondent) Appellant By Sh. Sanjay Kumar, Learned Senior Departmental Representative [“Ld. Sr. DR” for short] Respondent by Sh. Satyajeet Goel, CA ORDER PER ANADEE NATH MISSHRA, AM: (A) In this case, the Co-ordinate Bench of ITAT, Delhi had passed order dated 28/08/2019, vide appeal No.330/Del/2017 for Assessment Year 2012-13, filed by the Revenue; wherein the appeal filed by Revenue was dismissed on account of the tax effect being less than Rs.50,00,000/- holding as under: MA.23/Del/2020 ACIT vs. Saarthak Vanijya India Ltd. Page 2 of 5 “1. The captioned appeal in ITA No. 330/Del/2017 and 99 appeals [as per Annexure-A] preferred by the Revenue have been listed by the Registry before the Bench on the ground that they do not survive for consideration in view of the CBDT Circular No.17/2019 dated 8 th August, 2019. 2. The CBDT, vide Circular dated 8th August, 2019 (supra), has amended para 3 of Circular No. 3/2018 dated 11/07/2018 modifying the monetary limits for filing of appeals by the Department before the Tribunal. The tax effect in dispute in the captioned appeals is stated to be below the enhanced monetary limit of Rs. 50 lakhs specified in the CBDT Circular dated 08/08/2019 (supra) read with circular dated 11/07/2018 (supra). CBDT, vide clarification in F.No.279/Misc/M-93/2018-ITJ dated 20 th August, 2019 has clarified that the revised monetary limits specified in Circular dated 8 th August, 2019 (supra) are applicable to pending appeals also. 3. In this background, the learned D.R. appearing for the Revenue was required to state his position; he has not referred to any material which would show that the captioned appeals are protected by any of the exceptions provided in para 10 of the CBDT circular dated 11/07/2018 (supra) and its amendment dated 20 th August, 2018. 4. Without going into the merit of the issues raised in the captioned appeal, they are deemed to be withdrawn/not pressed, as their filing is not in consonance with the CBDT circular dated 08/08/2019 (supra) read with circular dated 11/07/2018 (supra). It is also noted that the Hon'ble Supreme Court in the case of DCIT & Ors vs. MSEB Holding Company Ltd. [SLP (Civil) No.26373/2019 dated 16/08/2019] has taken cognizance of the enhanced limit while dismissing the SLP arising from the judgment passed by the Hon'ble Bombay High Court in WP No.3642/2018 dated 25/01/2019. (B) This present Miscellaneous Application (‘MA’, for short) has been filed by Revenue seeking recall of the aforesaid order dated 28/08/2019 of Co-ordinate Bench of ITAT, Delhi; and requesting for decision of the case on merits; on the ground that MA.23/Del/2020 ACIT vs. Saarthak Vanijya India Ltd. Page 3 of 5 tax effect in the case is Rs.63,27,687/- which is more than the minimum threshold limit of tax effect of Rs.50,00,000/- for filing appeal before ITAT as per CBDT Circular No.17/2019 dated 08/08/2019. (C) In the course of appellate proceedings in Income Tax Appellate Tribunal (‘ITAT’ for short) pertaining to the present MA, calculation of tax effect was submitted from the assessee’s side, contending that the tax effect was Rs.41,55,815/-, well below the prescribed monetary limit of Rs.50,00,000/-. The tax effect calculation submitted from the assessee’s side is as under: Tax Effect Calculation Amount (In Rs.) Addition made by the Assessing Officer 1,42,32,000/- Addition deleted by CIT(A) 1,28,08,800/- Amount disputed by the revenue before ITAT 1,28,08,800/- Calculation of Income tax on amount of Rs.1,28,08,800/- Income Tax @ 30% 38,42,640/- Surcharge @ 5% 1,92,132/- Education Cess @3% 1,21,043/- Total Tax 41,55,815/- (D) At the time of hearing before us on 16/09/2022, the Ld. Sr. DR for Revenue agreed with the contention of the Ld. MA.23/Del/2020 ACIT vs. Saarthak Vanijya India Ltd. Page 4 of 5 Authorized Representative (‘Ld. AR’ for short) of the assessee that the tax effect was below Rs.50,00,000/-. The Ld. Sr. DR did not press the present MA and sought to withdraw the same. In view of the foregoing, we do not find any merits in the present MA of Revenue. Accordingly, this MA is dismissed, on the ground that it lacks in merits and further on the ground that it was not pressed and was sought to be withdraw. (E) In the result, this Miscellaneous Application filed by the Revenue is dismissed. Our order was already pronounced orally on 16 th September, 2022 in Open Court, in the presence of representatives of both sides, after conclusion of the hearing. Now this order in writing is signed today on 19.09.2022. Sd/- Sd/- (CHANDRA MOHAN GARG) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 19.09.2022 Pk MA.23/Del/2020 ACIT vs. Saarthak Vanijya India Ltd. Page 5 of 5 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI