Income Tax Appellate Tribunal - Chandigarh
Ito, W-3, Yamunanagar vs Shri Puran Chand, Yamunanagar on 20 August, 2019
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "बी" , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH "B", CHANDIGARH ी एन.के.सैनी, उपा य! एवं ी संजय गग%, या&यक सद(य BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, JM आयकर अपील सं./ ITA No. 661/Chd/2016 नधा रण वष / Assessment Year : 2005-06 The ITO बनाम M/s Prem Steel & Metals, (P) Ltd.
Ward-1, Mandi Gobindgarh Amloh Road, Mandi Gobindgarh
थायी लेखा सं./PAN NO: AACCP2920R
अपीलाथ /Appellant यथ /Respondent
(आयकर अपील सं./ ITA No. 448/Chd/2016
नधा रण वष / Assessment Year : 2006-07
The ITO बनाम M/s Prem Steel & Metals, (P) Ltd.
Ward-1, Mandi Gobindgarh Amloh Road, Mandi Gobindgarh
थायी लेखा सं./PAN NO: AFMPR7857K
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : Shri Ashok Goyal, CA
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 248/Chd/2017
नधा रण वष / Assessment Year : 2006-07
The ACIT बनाम Sh. Ved Prakash
Central Circle II, Ludhiana S/o Sh. Dewan Chand, 788-1,
BRS Nagar, Ludhiana
थायी लेखा सं./PAN NO: AIAPP7775R
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : None
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 1178/Chd/2016
नधा रण वष / Assessment Year : 2007-08
The ACIT, CC-II, बनाम Sh. Surjit Singh
Ludhiana C/o M/s Aar Pee Steel Rolling Mills.
Ambala Bye Pass, Ludhiana
थायी लेखा सं./PAN NO: AEFPS6342Q
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : Shri Sudhir Sehgal, Advocate
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
2
आयकर अपील सं./ ITA No. 441/Chd/2019
नधा रण वष / Assessment Year : 2007-08
The ITO,W-3 बनाम Shri Puran Chand
Aayakar Bhawan, Yamuna nagar, S/o Shri Garibu,Tehsil Jagadhri
Haryana Yamuna nagar, Haryana
थायी लेखा सं./PAN NO: AKTPC0458R
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : Shri Ajay Jain, CA
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 72/Chd/2019
नधा रण वष / Assessment Year : 2008-09
The DCIT, Central Circle बनाम M/s Standard Corporation India Ltd.
Patiala, Punjab Handiaya Chowk, Barnala, Punjab
थायी लेखा सं./PAN NO: AAFCS4440L
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : Shri Rajiv Gupta, CA
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 370/Chd/2019
नधा रण वष / Assessment Year : 2009-10
The ITO, W-3 बनाम Sh. Satish Kumar
Ward 3, SCO 24, Sector-17 S/o Sh. Abhey Singh, Vill Bibipur
Kurukshetra, Haryana Kalan, PO- Murtazpur, Pehowa
Kurukshetra- Haryana
थायी लेखा सं./PAN NO: EHRPK9899F
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : None
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 996/Chd/2017
नधा रण वष / Assessment Year : 2009-10
The ITO, W-4 बनाम Shri Tarlochan Singh
Khanna S/o Sh. Harnek Singh,
VPO- Kokrala Khurd, Samrala
थायी लेखा सं./PAN NO: BWDPS4901G
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : None
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
3
आयकर अपील सं./ ITA Nos. 325, 945, 947, 946, 1334/Chd/2016 & 2017 नधा रण वष / Assessment Years : 2010-11 to 2014-15 The DCIT बनाम Snow Valley Resorts Circle, Palampur A unit of Bakshi Hospitality Services The Mall, Dalhousie थायी लेखा सं./PAN NO: ABEFS7036D अपीलाथ /Appellant यथ /Respondent &नधा%)रती क+ ओर से/Assessee by : Shri Ashwani Kumar, CA राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR आयकर अपील सं./ ITA No. 1077 & 1078/Chd/2016 नधा रण वष / Assessment Year : 2009-10 & 2010-11 The ITO, Ward-3 बनाम Vikram Bansal, Sirsa C/o M/s Bhuladia & Co. CA SCC, 2nd Additional Mandi, Sirsa थायी लेखा सं./PAN NO: AGCPB8523H अपीलाथ /Appellant यथ /Respondent &नधा%)रती क+ ओर से/Assessee by : Shri Tej Mohan Singh, Advocate राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR आयकर अपील सं./ ITA No. 19/Chd/2019 नधा रण वष / Assessment Year : 2009-10 The JCIT (OSD), (E), C-2 बनाम M/s Mukand Lal College Society Chandigarh Model Town, Yamuna nagar, Haryana थायी लेखा सं./PAN NO: AABTM0273E अपीलाथ /Appellant यथ /Respondent &नधा%)रती क+ ओर से/Assessee by : Shri Tej Mohan Singh, Advocate राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR आयकर अपील सं./ ITA No. 1091/Chd/2017 नधा रण वष / Assessment Year : 2011-12 The DCIT, बनाम M/s The Sangrur Central Co-op Bank Circle, Sangrur Ltd., Patiala Gate, Sangrur थायी लेखा सं./PAN NO: AAAAT3920D अपीलाथ /Appellant यथ /Respondent &नधा%)रती क+ ओर से/Assessee by : Shri Ashok Goyal, CA राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR 4 आयकर अपील सं./ ITA No. 381/Chd/2019 नधा रण वष / Assessment Year : 2010-11 The JCIT (OSD) (E), C-2 बनाम M/s Vivekanand Medical Research Sector-17, Chandigarh Trust, Baijnath Road, Palampur, Himachal Pradesh थायी लेखा सं./PAN NO: AAATV2900N अपीलाथ /Appellant यथ /Respondent &नधा%)रती क+ ओर से/Assessee by : None राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR आयकर अपील सं./ ITA No. 1618/Chd/2017 नधा रण वष / Assessment Year : 2011-12 The ACIT बनाम M/s Shanti Sales India Pvt. Ltd.
Circle-3, Ludhiana 738/7A/2, Bhai Manna Singh Nagar
Ludhiana
थायी लेखा सं./PAN NO: AACCS3196E
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : Shri B.M. Monga, Shir Rohit Kaura, Advocate
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 916/Chd/2017
नधा रण वष / Assessment Year : 2011-12
The ITO बनाम Shiv Shankar Rice Mills
Sunam HQ Mandvi Road, Khanauri
Sangrur
थायी लेखा सं./PAN NO: ABLFS3318K
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : Shri Deepak Anand, Advocate
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 1258/Chd/2018
नधा रण वष / Assessment Year : 2013-14
The ITO, W-3(3) बनाम Smt. Paramjit Kaur
Ludhiana, Punjab D/o Darshan Singh, VPO Nurpur Bet
Ludhiana, Punjab
थायी लेखा सं./PAN NO: BQEPK3898R
अपीलाथ /Appellant यथ /Respondent
5
आयकर अपील सं./ ITA No. 1259/Chd/2018
नधा रण वष / Assessment Year : 2013-14
The ITO, W-3(4) बनाम Shri Karamvir Singh Gill
Rishi Nagar S/o Sh. Gurmeet Singh, VPO Nurpur
Ludhiana, Punjab Bet, Ludhiana- Punjab
थायी लेखा सं./PAN NO: AUFPG1065J
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : Shri Pankaj Bhalla, CA
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 432/Chd/2018
नधा रण वष / Assessment Year : 2014-15
JCIT (OSD), C-1 बनाम Mayur Foundation
(Exemptions) C/o Mayor World School
Chandigarh Urban Estate, Phase-1
Jalandhar, Punjab
थायी लेखा सं./PAN NO: AABTM 0863A
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : None
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 90/Chd/2019
नधा रण वष / Assessment Year : 2015-16
Jt. CIT(OSD),C-5 बनाम M/s Oswal Spinning & Weaving Mills
Circle-5, Ludhiana Ltd. 11 & 12,Block F, Near Orient
Punjab Cinema, BRS Nagar,
Main Market, Ludhiana, Punjab
थायी लेखा सं./PAN NO: AAACO1971H
अपीलाथ /Appellant यथ /Respondent
&नधा%)रती क+ ओर से/Assessee by : None
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
आयकर अपील सं./ ITA No. 708/Chd/2015
नधा रण वष / Assessment Year : 2011-12
The ITO, बनाम Sh. Nachhattar Singh Bhangoo,
Ward 6(2) H.No. 524, Phase 3B1, Mohali
Mohali
थायी लेखा सं./PAN NO: AAPPB1951N
अपीलाथ /Appellant यथ /Respondent
6
&नधा%)रती क+ ओर से/Assessee by : Shri N.K. Saini, ITP
राज(व क+ ओर से/ Revenue by : Shri Manjit Singh, CITDR
सन
ु वाई क+ तार ख/Date of Hearing : 20/08/2019
उदघोषणा क+ तार ख/Date of Pronouncement : 20/08/2019 आदे श/Order PER BENCH:
All the above appeals filed by the Department arising out of the separate orders passed by different CIT(A) as per the details given below:
Sl.No. Appeal Number & Assessment Year Date of CIT/ Office of CIT/ CIT(A) CIT(A) order 1 ITA No. 661/Chd/2016 (2005-06) 09/03/2016 CIT(A), Patiala 2 ITA No. 448/Chd/2016 ( 2006-07) 26/02/2016 CIT(A), Patiala 3 ITA No. 248/Chd/2017 (2006-07) 28/11/2016 CIT(A)-5, Ludhiana 4 ITA No. 1178/Chd/2016 (2007-08) 22/08/2016 CIT(A), Bathinda 5 ITA No. 441/Chd/2019 (2007-08 10/01/2019 CIT(A), Panchkula 6 ITA No. 72/Chd/2019 (2008-09) 28/09/2018 CIT(A), Patiala 7 ITA No. 370/Chd/2019 (2009-10) 30/01/2019 CIT(A), Karnal 8 ITA No. 996/Chd/2017 (2009-10) 29/03/2017 CIT(A)-2, Ludhiana 9 ITA No. 325/Chd/2016 (2010-11) 23/12/2015 CIT(A), Palampur 10 ITA No. 945/Chd/2017 (2011-12) 15/03/2017 CIT(A), Palampur 11 ITA No. 947/Chd/2017(2012-13) 15/03/2017 CIT(A), Palampur 12 ITA No. 946/Chd/2017 (2013-14) 15/03/2017 CIT(A), Palampur 13 ITA No. 1334/Chd/2017 (2014-15) 22/06/2017 CIT(A), Palampur 14 ITA No. 1077 & 78/Chd/2016 (2009-10 & 2010-11) 03/08/2016 CIT(A), Hisar 15 ITA No. 19/Chd/2019 (2009-10) 24/10/2018 CIT(A), Panchkula 16 ITA No. 1091/Chd/2017 (2011-12) 28/04/2017 CIT(A), Patiala 17 ITA No. 381/Chd/2019 (2010-11) 24/01/2019 CIT(A), Palampur 18 ITA No. 1618/Chd/2017 (2011-12) 18/09/2017 CIT(A)-1, Ludhiana 19 ITA No. 916/Chd/2017 (2011-12) 20/03/2017 CIT(A), Patiala 20 ITA No. 1258/Chd/2018 (2013-14) 27/07/2018 CIT(A)-1, Ludhiana 21 ITA No. 1259/Chd/2018 (2013-14) 27/07/2018 CIT(A)-1, Ludhiana 22 ITA No. 432/Chd/2018 (2014-15) 11/01/2018 CIT(A)-2, Jalandhar 23 ITA No. 90/Chd/2019 (2015-16) 22/11/2018 CIT(A)-2, Ludhiana 24 ITA No. 708/Chd/2015 (2011-12) 31/01/2014 ITO, W-6(2), Mohali
2. During the course of hearing it was a common contention of the Ld. Counsels present on behalf of the different Assessees that these appeals filed by the Department are not maintainable in view of the Circular No. 17/2019 dt. 08/08/2019 issued by CBDT 7 wherein the monetary limit for filing the appeals by the Department before the ITAT has been increased to Rs. 50,00,000/- from Rs. 20,00,000/-.
3. In the rival submissions the Ld. CIT DR submitted that the Circular No. 17/2019 dt. 08/08/2019 is not clearly retrospective in as much as it specifically states in para 4 that "the said modification shall come into effect from the date of issue of this Circular". It was stated that the aforesaid sentence clearly gives an impression that the said Circular is applicable after the date mentioned there in and thereafter the departmental appeals which come in the specified tax effect limit will not be filed. The Ld. Counsels appearing on behalf of the assessees vehemently opposed the contention of the Ld. CIT(DR) and they were unanimous in their arguments that the Circular must be held to have retrospective application and must equally apply to the pending appeals as well, since the present Circular only modifies the monetary limit earlier mentioned in Circular No. 3 of 2018 dt. 11/07/2018.
4. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case it is an admitted fact that the CBDT vide Circular No. 17/2019 enhanced the monetary limit to Rs. 50,00,000/- for not filing the appeal by the department before the ITAT, earlier this limit was specified at Rs. 20,00,000/- in the original Circular no. 03/2018 dt. 11/07/2018. Now vide the new Circular no. 17/2019 dt. 08/08/2019 the Tax Effect limit has been enhanced and this new Circular dt. 08/08/2019 read as under;
Circular No. - 17 of 2019 Date - 8th August 2019 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. Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation.
Appeals/SLPs in Income-tax Monetary Limit (Rs.) Monetary Limit (Rs.)
matters [Previous Limit) (Revised Limit)
Before Appellate Tribunal 20,00,000 50,00,000
Before High Court 50,00,000 1,00.00.000
Before Supreme Court 1,00,00,000 2.00.00,000
8
• 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. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit • 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 • In case where a composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately.
5. From the contents of the aforesaid Circular it is crystal clear that the anomaly in the earlier Circular no. 3 of 2018 dt. 11/07/2018 at page 5 has been removed and the limit specified in para 3 of the earlier Circular has been enhanced. It is also not in dispute that the earlier Circular was applicable retrospectively to the pending appeals / cross objections and para nos. 12 & 13 of the original Circular no. 03/2018 dt. 11/07/2018 read as under:
12. It is clarified that the monetary limit of Rs. 20 lakhs for filing appeals before the IT AT would apply equally to cross objections under section 253(4) of the Act. Cross objections below this monetary limit, already filed, should be pursued for dismissal as withdrawn/ not pressed. Filing of cross objections below the monetary limit may not be considered henceforth. Similarly, references to High Courts and SLPs/ appeals before Supreme Court below the monetary limit of Rs. 50 lakhs and Rs. 1 Crore respectively should be pursued for dismissal as withdrawn/ not pressed. References before High Court and SLPs/ appeals below these limits may not be considered henceforth.
13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SCIHCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed.
6. Now the CBDT simply enhanced the monitory limit and the directions given earlier vide para nos. 12 & 13 of the Circular no. 3 / 2018 dt. 11/07/2018 are still intact which is crystal clear from the language of the Circular no. 17/2019 wherein it has been mentioned that there is enhancement of monetary limit and amendment to Circular no. 3 /2018 for reducing the litigation. We therefore are of the confirmed view that the amended Circular No. 17/2019 now issued by the CBDT is also applicable to the pending appeals as has been specified in para 13 of the original Circular no. 3/2018 dt. 11/07/2018 and that the Department ought not have filed the appeals before the ITAT where the tax effect is Rs. 50 Lacs or less. For the aforesaid view we are also fortified by 9 the decision dt. 14/08/2019 of the coordinate Bench i.e; ITAT, Ahmedabad Bench 'A' Ahemdabad in ITA No. 1398/Ahd/2004 for the A.Y. 1998-99 in the case of ITO, Ward-3(2) Ahmedabad Vs. Dinesh Madhavlal Pate, Ahmedabad& others wherein it has been held in para 5 to 7 as under:
5. Having considered the rival submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now. Our line of reasoning is this. The circular dated 8 th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular. This is evident from the following extracts from the circular dated 8 th August 2019:
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.
6. Clearly, all other portions of the circular no. 3 of 2018 (supra) have remained intact. The portion which has remained intact includes paragraph 13 of the aforesaid circular which is as follows:
1013. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references.
Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed.
7. In view of the above discussions, we hereby hold that the relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8 th August 2019 (supra) shall be applicable to the pending appeals in addition to the appeals to be filed henceforth.
7. In view of the aforesaid discussion all the above appeals filed by the Department are dismissed.
8. In the result, all the above appeals of the Department are dismissed.
(Order pronounced in the open Court on 20/08/2019 ) Sd/- Sd/-
संजय गग% एन.के.सैनी,
(SANJAY GARG ) ( N.K. SAINI)
या&यक सद(य/ Judicial Member उपा य! / VICE PRESIDENT
AG
Date: 20/08/2019
आदे श क! त#ल$प अ%े$षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. आयकर आय' ु त/ CIT
4. आयकर आय' ु त (अपील)/ The CIT(A)
5. $वभागीय त न,ध, आयकर अपील.य आ,धकरण, च0डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File