Income Tax Appellate Tribunal - Delhi
Acit, Circle- 3(1)(2), International ... vs Starwood Development Consulting ... on 11 October, 2019
INCOME TAX PPELLATE TRIBUNAL
DELHI BENCH "FRIDAY 'A": NEW DELHI
BEFORE SHRI G.S. PANNU, VICE PRESIDENT
AND
SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER
ITA Nos. 6653 to 6655/Del/2017
(Assessment Years: 2012-13 to 2014-15)
Asstt. Commisioner of Income-tax, Vs. M/s Starwood Development
Circle -3(1)(2), New Delhi. Consulting Services (AP) P.Ltd.
C/o M/s Nangia & Co.,
A-109, Sector-136, Noida.
PAN: AANCS3847B
(Appellant) (Respondent)
Revenue by : Shri Surender Pal, Sr. DR
Assessee by: Shri Amit Arora, CA
Shri Shailesh Kumar, CA
Date of Hearing 11.10.2019
Date of pronouncement 11.10.2019
ORDER
PER K. NARASIMHA CHARY,J. M.
1. These three appeals filed by Department against the separate orders of the ld CIT(A)-43, New Delhi, all dated 30.8.2017 for the Assessment Years 2012-13 to 2014-15.
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 Page | 1 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 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 Page | 2 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, all these three appeals filed by the department are dismissed.
Order pronounced in the open court on 11th October, 2019.
Sd/- sd/-
(G.S. PANNU) (K. NARASIMHA CHARY)
VICE PRESIDENT JUDICIAL MEMBER
Dated: 11th October, 2019.
VJ
Copy forwarded to
1. Applicant
2. Respondent
3. CIT
4. CIT (A)
5. DR:ITAT
ASSISTANT REGISTRAR
ITAT, New Delhi
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Date of dictation 11.10.2019
Date on which the typed draft is placed before the dictating 11.10.2019
member
Date on which the typed draft is placed before the other 11.10.2019
member
Date on which the approved draft comes to the Sr. PS/ PS 11.10.2019
Date on which the fair order is placed before the dictating 11.10.2019
member for pronouncement
Date on which the fair order comes back to the Sr. PS/ PS 11.10.2019
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