ITO, WARD- 17(4), New Delhi v. National High Power Test Laboratory Pvt. Ltd.,, New Delhi

ITA 6920/DEL/2017 | 2014-2015
Pronouncement Date: 10-03-2021 | Result: Dismissed

Appeal Details

RSA Number 692020114 RSA 2017
Assessee PAN AADCN0782A
Bench Delhi
Appeal Number ITA 6920/DEL/2017
Duration Of Justice 3 year(s) 3 month(s) 19 day(s)
Appellant ITO, WARD- 17(4), New Delhi
Respondent National High Power Test Laboratory Pvt. Ltd.,, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 10-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 10-03-2021
Assessment Year 2014-2015
Appeal Filed On 20-11-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI N.K. BILLAIYA ACCOUNTANT MEMBER AND SHRI KULDIP SINGH JUDICIAL MEMBER ITA NO.6920/DEL./2017 (ASSESSMENT YEAR : 2014-15) ITO WARD 17 (4) VS. NATIONAL HIGH POWER TEST LABO RATORY NEW DELHI. PVT. LTD. NTPC BHAWAN CORE 7 INSTITUTIONAL AREA NEW DELHI 110 003. (PAN : AADCN0782A) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI GAYASUDDIN ANSARI SENIOR DR DATE OF HEARING : 10.03.2021 DATE OF ORDER : 10.03.2021 O R D E R PER KULDIP SINGH JUDICIAL MEMBER : THE APPELLANT ITO WARD 17 (4) NEW DELHI (HEREIN AFTER REFERRED TO AS THE REVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 14.09.2017 PASSE D BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-6 NEW DELHI Q UA THE ASSESSMENT YEAR 2014-15. ITA NO.6920/DEL./2017 2 2. PERUSAL OF THE AFORESAID APPEAL FILED BY THE RE VENUE APPARENTLY SHOWS THAT THE SAME IS HAVING LOW TAX EF FECT AS PER CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST 2019 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.50 00 000/- AND THIS FACTUAL POSITION HAS BEEN FAIRLY CONCEDED BY THE LD. SENIOR DR 3. WE HAVE HEARD THE SENIOR DR ON THE ISSUE IN CON TROVERSY AND PERUSED THE MATERIAL ON RECORD. PERUSAL OF CBDT CIRCULAR (SUPRA) SHOWS THAT MONETARY LIMIT FOR FILING THE AP PEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISED AND THE RELEVANT POR TION OF THE AFORESAID CIRCULAR IS EXTRACTED AS UNDER: SUBJECT : FURTHER ENHANCEMENT OF MONETARY LIMITS FO R FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME T AX APPELLATE TRIBUNAL HIGH COURTS AND SLPS/APPEALS BEFORE SUPRE ME COURT - AMENDMENT TO CIRCULAR 3 OF 2018 -MEASURES FOR REDUC ING LITIGATION. REFERENCE IS INVITED TO THE CIRCULAR NO.3 OF 2018 D ATED 11.07.2018 (THE CIRCULAR) OF CENTRAL BOARD OF DIREC T TAXES (THE BOARD) AND ITS AMENDMENT DATED 20TH AUGUST. 2018 VI DE WHICH MONETARY LIMITS FOR FILING OF INCOME TAX APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. HI GH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN SPE CIFIED. REPRESENTATION HAS ALSO BEEN RECEIVED THAT AN ANOMALY IN THE SAID CIRCULAR AT PARA 5 MAY BE REMOVED. 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 FURTHER THR OUGH 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: ITA NO.6920/DEL./2017 3 S. NO. APPEALS/SLPS IN INCOME -TAX MATTERS MONETARY LIMIT (IN 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 FILIN G OF APPEALS IN SCENARIOS WHERE SEPARATE ORDER IS PASSED BY HIGH ER 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 EFFE CT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RE SPECT OF AN 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 APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR NO APPEAL SHALL BE FILED IN RESPEC T OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN CAS E WHERE A COMPOSITE ORDER/ JUDGMENT INVOLVES MORE THAN ONE ASSESSEE. EACH ASSESSEE SHALL BE DEALT WITH SEPARAT ELY.' 4. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENC H OF THE TRIBUNAL IN CASE OF DINESH MADHAVLAL PATEL [TS-469-ITAT- 2019(AHD)] 2019-TIOL-1556-ITAT-AHM DATED 14 TH AUGUST 2019 HAS ALREADY DECIDED THE ISSUE AS TO THE APPLICABILI TY OF THE CAPTIONED CIRCULAR TO THE PENDING APPEALS IN AFFIRM ATIVE AND WHAT HAS BEEN DISCUSSED ABOVE WE ARE OF THE CONSIDERED VIEW THAT THE ITA NO.6920/DEL./2017 4 AFORESAID APPEAL IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.50 00 000/- HENCE THE AFORESAID APPEA L FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEEN BECOME INFR UCTUOUS. HOWEVER IN CASE THE PRESENT APPEAL IS FOUND TO BE MAINTAINABLE AT ANY STAGE FOR ANY TECHNICAL REASONS THE DEPARTMENT SHALL BE AT LIBERTY TO SEEK RECALL OF THIS ORDER UNDER RELEVANT PROVISIONS OF LAW. ORDER PRONOUNCED IN OPEN COURT ON THIS 10 TH DAY OF MARCH 2021. SD/- SD/- (N.K. BILLAIYA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 10 TH DAY OF MARCH 2021 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-6 NEW DELHI. 5.CIT(ITAT) NEW DELHI. AR ITAT NEW DELHI.