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[Cites 1, Cited by 2]

Income Tax Appellate Tribunal - Delhi

Acit, New Delhi vs M/S Green Valley Housing & Land ... on 14 October, 2019

                    INCOME TAX PPELLATE TRIBUNAL
                      DELHI BENCH "C": NEW DELHI

    BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
                            AND
         SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER

                           ITA No.1874/Del/2014
                        (Assessment Year: 2008-09)

Dy. Commissioner of Income-tax,       Vs.   M/s Gardenia India Ltd.,
Central Circle-7, New Delhi.                R-19, 3rd Floor,
                                            Main Shakarpur Market,
                                            Vikas Marg, New Delhi
                                            PAN: AACCG7503M

                           ITA No.1531/Del/2013
                        (Assessment Year: 2006-07)

Asstt.. Commissioner of Income-tax,   Vs.   M/s Green Park Estate (P)Ltd.,
Central Circle-23, New Delhi.               M-11, Middle Circle,
                                            Connaught Place, New Delhi
                                            PAN: AAACG4040P

                       ITA Nos. 1251 & 2685/Del/2013
                   (Assessment Years: 2006-07 & 2009-10)

Asstt. Commissioner of Income-tax,  Vs. M/s Green Valley Housing &
Central Circle-23, New Delhi.           Land Development (P)Ltd.,
                                        M-11, Middle Circle,
                                        Connaught Place, New Delhi
                                         PAN: AACCG4113H
                           ITA No.3390/Del/2016
                        (Assessment Year: 2011-12)

Income-tax Officer,                   Vs.   M/s Kishore Gidwaney,
Ward - 28(5), New Delhi.                    G-173, Sarita Vihar,
                                            New Delhi
                                            PAN: AAJPG3295J
    Appellant                               Respondent



    Revenue by :        Ms Paramita M. Biswas, CIT DR
                        Shri Sanjog Kapoor, Sr. DR
    Assessee by:        Shri Mohit Jain, CA in ITA No.1874/14
                        Shri Ajay Bhagwani, CA,ITA 1251,1531, 2685/13
                        Shri Satajeet Goel, CA in ITA 3390/2016
Date of Hearing                              14.10.2019
Date of                                      14.10.2019
pronouncement
                                                                             Page | 1
                                           ORDER

PER BENCH

1. The present appeals filed by the Revenue in respect of different assessees are directed against the orders passed by the CIT(A) in relation to the different assessment years.

2. At the outset of the hearing itself, the ld. DR brought to our attention that CBDT vide Circular No. 17/2019 dated 08th August 2019 has decided that the revenue would not prefer any appeal before the Tribunal if the tax effect is less than Rs. 50 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the Instruction of the CBDT.

3. We have heard the contention and perused the material on record. We find that the CBDT vide Circular No. 17/2019 dated 08th August 2019 has enhanced the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal, Hon'ble High Courts and Hon'ble Supreme Court. The relevant para of the aforesaid 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 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 Monetary Limit (Rs.) matters
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 Page | 2 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.

6. This issues under section 268A of the Income-tax Act, 1961."

4. We find that the tax effect involves in the appeal of the Revenue is below Rs. 50 lakhs. There is no dispute that the Board's instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present 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 circular 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 .

5. 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 certain 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.

6. In the result, appeals filed by the department are dismissed.

Order pronounced in the open court on 14th October, 2019.

          Sd/-                                                     sd/-
      (PRASHANT MAHARISHI)                                   (K. NARASIMHA CHARY)
       ACCOUNTANT MEMBER                                      JUDICIAL MEMBER



     Dated: 14th October, 2019.
     VJ


                                                                                     Page | 3
 Copy forwarded to

1.   Applicant
2.   Respondent
3.   CIT
4.   CIT (A)
5.   DR:ITAT
                                                                ASSISTANT REGISTRAR
                                                                  ITAT, New Delhi


     Date of dictation                                                14.10.2019
     Date on which the typed draft is placed before the dictating     14.10.2019
     member
     Date on which the typed draft is placed before the other         14.10.2019
     member
     Date on which the approved draft comes to the Sr. PS/ PS         14.10.2019
     Date on which the fair order is placed before the dictating      14.10.2019
     member for pronouncement
     Date on which the fair order comes back to the Sr. PS/ PS        14.10.2019
     Date on which the final order is uploaded on the website of        .10.2019
     ITAT
     date on which the file goes to the Bench Clerk                     .10.2019
     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 Page | 4