ACIT, CENTRAL CIRCLE- 32, NEW DELHI v. COUNTRYWIDE PROMOTERS PVT. LTD., NEW DELHI

ITA 7864/DEL/2017 | 2006-2007
Pronouncement Date: 18-11-2019 | Result: Dismissed

Appeal Details

RSA Number 786420114 RSA 2017
Assessee PAN AAACC5280H
Bench Delhi
Appeal Number ITA 7864/DEL/2017
Duration Of Justice 1 year(s) 10 month(s) 19 day(s)
Appellant ACIT, CENTRAL CIRCLE- 32, NEW DELHI
Respondent COUNTRYWIDE PROMOTERS PVT. LTD., NEW DELHI
Appeal Type Income Tax Appeal
Pronouncement Date 18-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 18-11-2019
Assessment Year 2006-2007
Appeal Filed On 29-12-2017
Judgment Text
PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE MS SUCHITRA KAMBLE JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI ACCOUNTANT MEMBER ITA NO. 5172/DEL/2017 (ASSESSMENT YEAR: 2014 - 15 ) ACIT CENTRAL CIRCLE - 32 NEW DELHI VS. COUNTRYWIDE PROMOTORS PVT. LTD M - 11 MIDDLE CIRCLE CONNAUGHT CIRCUS NEW DELHI PAN: AAACC5280H (APPELLANT) (RESPONDENT) ITA NO. 7864/DEL/2017 (ASSESSMENT YEAR: 2006 - 07) ACIT CENTRAL CIRCLE - 32 NEW DELHI VS. COUNTRYWIDE PROMOTERS PVT. LTD M - 11 MIDDLE CIRCLE CONNAUGHT CIRCUS NEW DELHI PAN: AAACC3536A ASSESSEE BY : MS. NIDHI SRIVASTAVA CIT DR REVENUE BY: SHRI AJAY BHAGWANI CA DATE OF HEARING 14/11 / 201 9 DATE OF PRONOUNCEMENT 1 8 / 11 / 2019 O R D E R PER PRASHANT MAHARISHI A. M. 1. THESE ARE APPEAL S FILED BY THE REVENUE AGAINST THE ORDER OF THE LD CIT(A) - 30 NEW DELHI DATED 11.10.2017 FOR THE AY 2006 - 07 AND 05.05.2017 FOR THE AY 2014 - 15 . 2. AT THE OUTSET OF THE HEARING ITSELF THE LD. AR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST 2019 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER ANY APPEAL BEFORE THE TRIBUNAL IF THE TAX EFF ECT IS LESS THAN RS. 50 LAKHS. THEREFORE HE PLEADED THAT THE APPEAL OF THE REVE NUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. 3. THE LD DRS VEHEMENTLY OBJECTED TO THE SAME AND SUBMITTED THAT IT APPLIES PROSPECTIVELY AND NOT TO PENDING APPEALS. 4. WE HAVE HEARD THE CONTENTION OF BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE CBDT VIDE CIRCULAR NO. 17/2019 DATED 08 TH AUGUST 2019 HAS ENHANCED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE PAGE | 2 DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AF ORESAID CIRCULAR IS REPRODUCED AS UNDER : - 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 CIRCUL AR 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 Y EARS 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 TH AN 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/ JUDG EMENT 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. 6. THIS ISSUES UNDER SECTION 268A OF THE INCOME - TAX ACT 1961. 5. WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS. 50 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES THEREFORE THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT PAGE | 3 APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 50 LAKHS. THE ISSUE OF APPLICABILITY OF THE ABOVE CIR CULAR TO PENDING APPEALS HAS BEEN DECIDED BY THE COORDINATE BENCH IN DINESH MADHAVLAL PATEL [TS - 469 - ITAT - 2019(AHD)] 2019 - TIOL - 1556 - ITAT - AHM DATED 14TH AUGUST 2019 . 6. IN VIEW OF THE ABOVE CIRCULAR NO. 17/2019 DATED 08/08/2019 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS. 50 LAKHS. ACCORDINGLY IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. WE ALSO HASTENED TO ADD THAT CER TAIN TIMES INSTANCES STATED IN PARA NO. 10 OF THE CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018 IS NOT DISCERNABLE FROM THE ASSESSMENT AND APPELLATE ORDERS THEREFORE IN SUCH CASES WE ALSO GIVE LIBERTY TO REVENUE THAT IF SUCH INSTANCES COMES TO THEIR NOTICE THAN REVENUE MAY FILE MISCELLANEOUS APPLICATION WITH SUCH EVIDENCES. 7. IN THE RESULT APPEAL S FILED BY THE DEPARTMENT ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 8 / 11 / 2019 . - SD/ - - SD/ - ( SUCHITRA KAMBLE ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 8 / 11 / 2019 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT NEW DELHI PAGE | 4 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/ PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER