ITO, Muzaffarnagar v. M/s. Cane Development Council, Muzaffarnagar

ITA 6484/DEL/2016 | 2008-2009
Pronouncement Date: 27-11-2019 | Result: Dismissed

Appeal Details

RSA Number 648420114 RSA 2016
Assessee PAN AAALC0277F
Bench Delhi
Appeal Number ITA 6484/DEL/2016
Duration Of Justice 2 year(s) 11 month(s) 8 day(s)
Appellant ITO, Muzaffarnagar
Respondent M/s. Cane Development Council, Muzaffarnagar
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 27-11-2019
Assessment Year 2008-2009
Appeal Filed On 19-12-2016
Judgment Text
INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B: NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA ACCOUNTANT MEMBER ITA NO. 6484/DEL/2016 ASSTT. YEARS: 2008-09 ITA NO. 6486/DEL/2016 ASSTT. YEAR: 2012-13 INCOME TAX OFFIC ER WARD-1 (2) MUZAFFARNAGAR VS. M/S. CANE DEVELOPMENT COUNCIL ROHANA KALAN MUZAFFARNAGAR PAN AAALC0277F (APPELLANT) (RESPONDENT) CO NO. 43/DEL/2017 (ITA NO. 6484/DEL/2016) ASSTT. YEAR 2008-09 INCOME TAX OFFICER WARD-1 (2) MUZAFFARNAGAR VS. M/S. CANE DEVELOPMENT COUNCIL TITAWI OPP. RAILWAY STATION MUZAFFARNAGAR PAN AAALC0173E (APPELLANT) (RESPONDENT) M/S. CANE DEVELOPMENT COUNCIL TITAWI OPP. RAILWAY STATION MUZAFFARNAGAR PAN AAALC0173E VS. ITO WARD-1(2) MUZAFFARNAGAR (APPELLANT) (RESPONDENT) ITA NOS. 6484 6486/DEL/2016 ITO VS CANE DEVELOPMENT COUNCIL CO NOS. 43 45/ DEL/ 2017 CANE DEVELOPMENT COUNCIL VS ITO 2 CO NO. 45/DEL/2017 (ITA NO. 6486/DEL/2016) ASSTT. YEAR 2012-13 M/S. C ANE DEVELOPMENT COUNCIL ROHANA KALAN MUZAFFARNAGAR PAN AAALC0277F VS. ITO WARD-1(2) MUZAFFARNAGAR (APPELLANT) (RESPONDENT) O R D E R PER BENCH: THE APPEALS HAVE BEEN PREFERRED BY THE DEPARTMENT AND PERTAIN TO ASSESSMENT YEARS 2008-09 AND 2012-13. THE CROSS OBJECTIONS HAVE BEEN FILED BY THE ASSESSEE. 2. AT THE TIME OF HEARING NONE WAS PRESENT ON BEHALF OF THE ASSESSEE/RESPONDENT. HOWEVER A LETTER ADDRESSED TO THE BENCH AND SIGNED BY SHRI DINESH MOHAN ADVOCATE HAS BEEN PUT UP BEFORE US IN WHICH IT HAS BEEN PRAYED THAT SINCE THE ARGUING COUNCIL IS SUFFERING FROM VIRAL FEVER AND THROAT INFECTION THE ASSESSEE BY: NONE DEPAR TMENT BY : MS. ASHIMA NEB SR. DR DATE OF HEARING 26 / 11 /201 9 DATE OF PRONOUNCEMENT 2 7 /1 1 /2019 ITA NOS. 6484 6486/DEL/2016 ITO VS CANE DEVELOPMENT COUNCIL CO NOS. 43 45/ DEL/ 2017 CANE DEVELOPMENT COUNCIL VS ITO 3 HEARING MAY BE ADJOURNED. PER CONTRA THE LD. SR. DR APPEARING ON BEHALF OF THE DEPARTMENT HAS FAIRLY ACCEPTED THAT BOTH THE APPEALS FILED BY THE DEPARTMENT ARE BELOW TAX LIMIT PRESCRIBED FOR FILING THE APPEALS BEFORE THE INCOME TAX APPELLATE TRIBUNAL. WE ALSO NOTE THAT THE CROSS OBJECTIONS OF THE ASSESSEE ARE SUPPORTIVE IN NATURE AND SUPPORT THE ORDER OF THE LD. CIT (APPEALS) IN AS MUCH AS IN BOTH THE YEARS UNDER CONSIDERATION THE ASSESSEES APPEAL HAS BEEN ALLOWED IN TOTALITY BY THE LD. CIT (APPEALS). THEREFORE WE ARE PROCEEDING TO DISPOSE OF THE APPEALS AS WELL AS THE COS EX PARTE QUA THE ASSESSEE/RESPONDENT. 3. IN VIEW OF THE LOW TAX EFFECT IN THE TWO DEPARTMENTAL APPEALS WHICH THE LD. SR. DR HAS BROUGHT TO OUR ATTENTION WE NOTE THAT THE REVENUES APPEALS DO NOT SURVIVE. IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 THE CBDT HAS ENHANCED THE MONETARY LIMIT FOR FILING OF APPEAL BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS. 20 LACS TO RS. 50 LACS. THE SAID CIRCULAR ALSO MAKE REFERENCE TO THE EARLIER CIRCULAR NO. 3/2018 DATED 11.7.2018 AND SPECIALLY STATES THAT AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION THE BOARD HAS DECIDED TO ENHANCE THE MONETARY LIMIT FOR FILING OF ITA NOS. 6484 6486/DEL/2016 ITO VS CANE DEVELOPMENT COUNCIL CO NOS. 43 45/ DEL/ 2017 CANE DEVELOPMENT COUNCIL VS ITO 4 THE APPEALS. THIS CIRCULAR IS NOT IN SUPERSESSION OF THE EARLIER CIRCULAR BUT ONLY AMENDS THE MONETARY LIMITS AS WELL AS GIVES CLARIFICATION WITH REGARD TO PARAGRAPH 5 OF THE EARLIER CIRCULAR. THIS INTER ALIA MEANS THAT ALL THE OTHER CONDITIONS MENTIONED IN THE EARLIER CIRCULAR NO. 3 OF 2018 DATED 11.7.2018 WILL APPLY MUTATIS MUTANDIS INCLUDING THAT IS IT WILL APPLY TO ALL THE PENDING APPEALS. FOR THE SAKE OF READY REFERENCE THE LATEST CIRCULAR IS REPRODUCED HEREUNDER: F. NO.279/MISC. 142/2007-ITJ (PT.) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES JUDICIAL SECTION NEW DELHI. 8TH AUGUST 2019 SUBJECT: - FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATION.- REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF2018 DATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIRECT TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VIDE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPECIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. ITA NOS. 6484 6486/DEL/2016 ITO VS CANE DEVELOPMENT COUNCIL CO NOS. 43 45/ DEL/ 2017 CANE DEVELOPMENT COUNCIL VS ITO 5 2. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION. 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 SPECIFIED IN PARA 3 OF THE CIRCULAR SHALL READ AS FOLLOWS: 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 WHERE 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 EFFECT 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 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 SPECIFIED IN PARA 3. NO APPEAL 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. FURTHER EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL 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. IN CASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY. 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 5. THE SAME MAY BE BROUGHT TO THE NOTICE OF ALL CONCERNED. ITA NOS. 6484 6486/DEL/2016 ITO VS CANE DEVELOPMENT COUNCIL CO NOS. 43 45/ DEL/ 2017 CANE DEVELOPMENT COUNCIL VS ITO 6 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME-TAX ACT 1961. 4. FURTHER CBDT VIDE CIRCULAR DATED 20TH AUGUST 2019 F.NO.279/19-93/2018-ITJ HAS CLARIFIED THAT IT WILL APPLY TO ALL PENDING APPEALS. THUS IN VIEW OF THE AFORESAID CIRCULAR BOTH THE APPEALS OF THE REVENUE ARE DISMISSED AS NON-MAINTAINABLE BECAUSE TAX EFFECT IS BELOW RS. 50 LAKHS. 5. SINCE THE CROSS OBJECTIONS OF THE ASSESSEE ARE SUPPORTIVE IN NATURE THE SAME ARE ALSO LIABLE TO BE DISMISSED. 6. IN THE FINAL RESULT BOTH THE APPEALS OF THE DEPARTMENT AND BOTH THE CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH NOVEMBER 2019. SD/- SD/- (ANADEE NATH MISSHRA) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 .11.2019 VEENA COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ITA NOS. 6484 6486/DEL/2016 ITO VS CANE DEVELOPMENT COUNCIL CO NOS. 43 45/ DEL/ 2017 CANE DEVELOPMENT COUNCIL VS ITO 7 ASSISTANT REGISTRAR ITAT NEW DELHI