JCIT, SPECIAL RANGE- 1, NEW DELHI V. ADM AGRO INDUSTRIES INDIA PVT. LTD., GURGAON

MA 852/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2595 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-10-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 27-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ROBIN RAWAL
• Keywords: Tax effect
• Section: 20

Judgement Text

1 M.A NOS. 852, 853 & 854/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: FRIDAY NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER M.A. NO.- 852/DEL/2019 ARISING OUT OF ITA NO:- 892/DEL/2019 ( ASSESSMENT YEAR: 2015-16) M.A. NO.- 853/DEL/2019 ARISING OUT OF ITA NO:- 893/DEL/2019 ( ASSESSMENT YEAR: 2013-14) M.A. NO.- 854/DEL/2019 ARISING OUT OF ITA NO:- 894/DEL/2019 ( ASSESSMENT YEAR: 2014-15) ASSISTANT COMMISSIONER OF INCOME TAX , SPECIAL RANGE-1 CIRCLE-1(2), NEW DELHI VS. M/S ADM AGRO INDUSTRIES LTD. 807, NEW DELHI HOUSE, BARAKHAMBA ROAD, NEW DELHI-01 PAN NO: AAACT0700F APPELLANT RESPONDENT DATE OF HEARING : 22/10/2021 REVENUE BY : SH. ROBIN RAWAL, SR.DR ASSESSEE BY : MS. SOUMYA SINGH, CA 2 M.A NOS. 852, 853 & 854/DEL/2019 ORDER PER ANADEE NATH MISSHRA, AM (A) THESE MISCELLANEOUS APPLICATIONS U/S 254 (2) O F THE INCOME TAX ACT, 1961 (I.T. ACT, FOR SHORT) READ WITH RULE 24 OF INCOME-TAX (A PPELLATE TRIBUNAL) RULES, 1963 (IT(AT) RULES, FOR SHORT) HAVE BEEN FILED BY REVE NUE, REQUESTING FOR RECALLING OF CONSOLIDATED ORDER DATED 28.08.2019 IN THE MAIN APP EAL OF THE ASSESSEE M/S ADM AGRO INDUSTRIES IN REVENUES APPEALS VIDE ITA NOS. 89 2, 893 & 894/DEL/2019. THE APPEALS FIELD BY THE REVENUE IN AFORESAID ITA NOS. 892, 893 & 894/DEL/2019 WERE FIXED FOR HEARING ALONG WITH SOME OTHER APPEALS FILED BY REVE NUE AND A CONSOLIDATED ORDER DATED 28/8/2019 WAS PASSED DISMISSING THE APPEALS F IELD BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT. IN THE AFORESAID ORDER DATED 28.08 .2019, INCOME TAX APPELLATE TRIBUNAL ('ITAT', FOR SHORT) TOOK NOTE OF CBDT CIRCULAR NO, 17/2019 DATED 08/08/2019, WHEREBY THE EARLIER CBDT CIRCULAR NO. 3/2018 DATED 11.07.20 18 WAS AMENDED, AND THE MINIMUM MONETARY LIMIT OF TAX EFFECT FOR FILING OF DEPARTMENTAL APPEALS BY REVENUE BEFORE INCOME TAX APPELLATE TRIBUNAL WAS ENHANCED T O RS. 50 LAKHS. NOTE WAS ALSO TAKEN OF CLARIFICATION ISSUED BY CBDT VIDE F.NO. 27 9/MISC/M-93/2018-RRJ, DATED 20 TH AUGUST, 2019 WHEREIN IT WAS DIRECTED THAT THE REVISED MONETARY LIMITS MENTIONED IN CIRCULAR 17/2019 WERE APPLICABLE TO ALL PENDING SL PS/APPEALS/ CROSS OBJECTIONS/REFERENCE; AND FURTHER, THAT ALL SUCH PE NDING APPEALS WITHIN THE REVISED LIMITS SHOULD BE WITHDRAWN ON OR BEFORE 31.10.2019. 3 M.A NOS. 852, 853 & 854/DEL/2019 (A.1) REVENUE'S AFORESAID APPEALS VIDE ITA NOS, 892 , 893 & 894/DEL/2019 WERE DISMISSED BY AFORESAID ORDER DATED 28.08.2019 OF IT AT ON THE GROUND THAT THE TAX EFFECT IN REVENUE'S APPEALS WERE BELOW RS. 50 LAKHS . IT WAS HELD IN THE AFORESAID ORDER DATED 28.08.2019 THAT REVENUE'S APPEALS WERE TO BE TREATED AS WITHDRAWN/ NOT PRESSED BY REVENUE, AND ALSO NOT MAINTAINABLE, HAVING REGAR D TO AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019 . HOWEVER, IT WAS CLARIFIE D IN PARAGRAPH (B.3) OF THE AFORESAID ORDER DATED 28.08.2019 THAT REVENUE WOULD BE AT LIBERTY TO APPROACH ITAT FOR RECALL OF THE ORDER AND FOR RESTORATION OF THE APPEAL, IF IT WAS FOUND THAT REVENUE'S APPEALS WERE NOT COVERED BY AFORESAID CBDT CIRCULAR NO. - 17/2019 DATED 08/08/2019. (B) NOW, THESE PRESENT MISCELLANEOUS APPLICATION HA VE BEEN FILED BY REVENUE SEEKING RECALL OF AFORESAID ORDER DATED 28.08.2019 OF ITAT HAVING REGARD TO REVENUE'S AFORESAID APPEALS VIDE ITA NOS. 892,893 AND 894/DEL/2019, ON THE GROUND THAT TAX EFFECT IN EACH OF THESE APPEALS WAS MORE THAN RS. 50 LAKHS, THE PR ESCRIBED MONETARY LIMIT IN AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019. IN PAR TICULAR, IT HAS BEEN CONTENDED IN M.A. NO. 852/DEL/2019 (ARISING OUT OF REVENUES APP EAL IN ITA NO. 892/DEL/2019) THAT TAX EFFECT IS RS. 1,14,79,212). FURTHER, IT IS CON TENDED IN M.A. NO. 853/DEL/2019 (ARISING OUT OF REVENUES APPEAL IN ITA NO. 893/DEL /2019) THAT THE TAX EFFECT IS RS. 76,50,477/-. FURTHERMORE, IT IS CONTENDED IN M.A. NO. 854/DEL/2019 (ARISING OUT OF REVENUES APPEAL IN ITA NO. 894/DEL/2019) THAT THE TAX EFFECT IS RS. 74,09,230/-. (C) AT THE TIME OF HEARING BEFORE US, THE LD. SENIO R DEPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHORT) DREW OUR ATTENTION TO THE CONTENTIONS MADE IN THE PRESENT THREE MISCELLANEOUS APPLICATIONS BEFORE US, AND SUB MITTED THAT THE TAX EFFECT IN EACH OF 4 M.A NOS. 852, 853 & 854/DEL/2019 THE THREE REVENUE APPEALS VIDE ITA NOS. 894, 895 & 896/DEL/2019 IS MORE THAN RS. 50 LACS PRESCRIBED AS MINIMUM MONETARY LIMIT IN CBDT C IRCULAR NO. 17/2019 DATED 8/8/2019. HE SUBMITTED THAT THE APPEALS SHOULD BE RESORTED FOR DECISION ON MERIT. THE LD. COUNSEL FOR THE ASSESSEE AGREED WITH THE SUBMIS SIONS OF THE LD. SENIOR DR AND EXPRESSED NO OBJECTION TO RESTORATION OF REVENUES APPEALS. HOWEVER, SHE SUBMITTED THAT THE ASSESSEE HAS OPTED FOR VIVAD SE VISHWAS SC HEME 2020, (VSVS, FOR SHORT) AND FURTHER, THAT FORM 3 UNDER AFORESAID VSVS HAS A LREADY BEEN ISSUED BY THE DESIGNATED AUTHORITY UNDER VSVS, IN RESPECT OF ALL THE THREE APPEALS. SHE FURTHER SUBMITTED THAT THE ASSESSEE HAS ALSO FILED FORM 4 U NDER THE VSVS IN RESPECT OF ALL THE THREE APPEALS AND IS AWAITING THE ISSUE OF FORM 5 B Y REVENUE AUTHORITIES IN ALL THE THREE APPEALS. SHE, THEREFORE, SUBMITTED THAT WHIL E THE ASSESSEE HAD NO OBJECTION TO RESTORATION OF THE AFORESAID APPEALS FILED BY THE R EVENUE VIDE ITA NOS. 893, 894 & 895/DEL/2019; HOWEVER, SHE SUBMITTED, THE APPEALS O F REVENUE UPON RESTORATION OF THE APPEALS, DESERVED TO BE DISMISSED ON ACCOUNT OF AFORESAID VSVS. FOR THIS PURPOSE, SHE SUBMITTED THAT THE APPEALS OF REVENUE SHOULD BE FIXED FOR HEARING IMMEDIATELY UPON THEIR RESTORATION. AT THIS STAGE, THE LD. DEP ARTMENTAL REPRESENTATIVE FOR REVENUE AS WELL AS THE LD. COUNSEL FOR THE ASSESSEE, BOTH A GREED BEFORE US, THAT THE APPEALS OF REVENUE SHOULD BE FIXED FOR HEARING, UPON RESTORATI ON, ON 22.10.2021 ITSELF. (C.1) IN VIEW OF THE FORGOING, AND AS BOTH SIDES AR E IN AGREEMENT ON THIS, WE ARE HEREBY RECALLING AFORESAID ITATS ORDER DATED 28/8/ 2019 IN RESPECT OF REVENUES APPEAL IN ITA NOS. 893, 894 & 895/DEL/2019; AND WE ARE RES TORING THESE APPEALS FILED BY THE REVENUE FOR DENOVO HEARING AND HEARING IS FIXED IN THESE APPEALS, UPON RESTORATION, ON 5 M.A NOS. 852, 853 & 854/DEL/2019 22.10.2021 ITSELF. THE APPEALS IN ITA NOS. 893, 89 4 & 895/DEL/2019 HAVE ALSO BEEN HEARD ON 22.10.2021, UPON THEIR RESTORATION, AND SE PARATE ORDER IS BEING PASSED IN THESE APPEALS. THE MISCELLANEOUS APPLICATIONS FIL ED BY REVENUE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSE. (D) THE ORDER WAS ORALLY PRONOUNCED IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES, AFTER CONCLUSION OF HEARING ON 22.10.21. NOW, THIS WRITTEN ORDER IS SIGNED TODAY ON 26.10.2021. SD/- SD/- (KUL BHARAT) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 26/10/2021 *R.N/- *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI