DCIT, New Delhi v. Ozone Pharmaceuticals Ltd., New Delhi

ITA 1656/DEL/2016 | 2012-2013
Pronouncement Date: 28-11-2019 | Result: Dismissed

Appeal Details

RSA Number 165620114 RSA 2016
Assessee PAN AAACO0056H
Bench Delhi
Appeal Number ITA 1656/DEL/2016
Duration Of Justice 3 year(s) 7 month(s) 30 day(s)
Appellant DCIT, New Delhi
Respondent Ozone Pharmaceuticals Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 28-11-2019
Assessment Year 2012-2013
Appeal Filed On 29-03-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE MS. SUSHMA CHOWLA JUDICIAL MEMBER AND SHRI O.P. KANT ACCOUNTANT MEMBER ITA NO.1656/DEL/2016 ASSESSMENT YEAR: 2012-13 DCIT CIRCLE-19(1) NEW DELHI VS. M/S. OZONE PHARMACEUTICALS LTD. 1-LSC BLOCK- A-3 JANAKPURI NEW DELHI PAN :AAACO0056H (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT AM: THE PRESENT APPEAL BY THE REVENUE IS DIRECTED AGA INST ORDER DATED 18.01.2016 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-7 NEW DELHI FOR ASSESSMENT YEAR 201 2-13. 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 A PPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.50 LAKHS. THEREFORE HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDE D AS PER THE INSTRUCTION OF THE CBDT. APPELLANT BY SMT.DEEPALI CHANDRA CIT(DR) RESPONDENT BY SHRI SOMIL AGGARWAL ADV. DATE OF HEARING 26.11.2019 DATE OF PRONOUNCEMENT 28.11.2019 2 ITA NO.1656/DEL/2016 3. WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17/2019 DA TED 08.08.2019 HAS ENHANCED THE MONETARY LIMIT FOR FIL ING OF APPEALS BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE T RIBUNAL FROM RS.20 LAKHS TO RS.50 LAKHS. THE SAID CIRCULAR ALSO MAKES REFERENCE TO THE EARLIER CIRCULAR NO. 3/2018 DATED 11.7.2018 AND ESPECIALLY STATES THAT AS A STEP TOWARDS FURTH ER MANAGEMENT OF LITIGATION THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF THE APPEALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE EARLIER CIRCULAR BUT ONLY AMENDS THE MONETARY LIMIT S AS WELL AS GIVES CLARIFICATION WITH REGARD TO PARAGRAPH 5 OF T HE EARLIER CIRCULAR. THIS INTER ALIA MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN THE EARLIER CIRCULAR NO. 3 OF 2018 DAT ED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT IT WILL APPLY TO ALL THE PENDING APPEALS. FOR THE SAKE OF READY REFERENCE R ELEVANT PORTION OF THE LATEST CIRCULAR I.E. CIRCULAR NO. 17/2019 DATED 08.08.2019 IS REPRODUCED AS UNDER: SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPE LLATE TRIBUNAL HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME 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 APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBU NAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT H AVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIV ED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE RE MOVED. 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION. IT HAS BEEN DECIDED BY THE BOARD THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME-TAX CASES BE ENHANCED F URTHER THROUGH AMENDMENT IN PARA 3 OF THE CIRCULAR MENTION ED 3 ITA NO.1656/DEL/2016 ABOVE AND ACCORDINGLY THE TABLE FOR MONETARY LIMIT S SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS F OLLOWS: 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 E FFECT 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 M ORE 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 S PECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF A N ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. FURTHE R EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR AP PELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT Y EAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONE TARY LIMIT SPECIFIED IN PARA 3. IN CASE WHERE A COMPOSITE ORDE R/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASS ESSEE SHALL BE DEALT WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CON CERNED. 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 APP LY TO ALL PENDING APPEALS. THUS IN VIEW OF THE AFORESAID CIR CULAR THE APPEAL OF THE REVENUE IS DISMISSED AS NON-MAINTAINA BLE AS THE 4 ITA NO.1656/DEL/2016 TAX EFFECT INVOLVED IN THE APPEAL IS BELOW RS.50 LA KHS. 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 LIMI T OF RS.50 00 000/- OR ANY OF THE CONDITIONS ETC. AS AV AILABLE 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 28 TH NOVEMBER 2019. SD/- SD/- (SUSHMA CHOWLA) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28 TH NOVEMBER 2019. RK/-(D.T.D.) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR ITAT NEW DELHI