IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: `A' NEW DELHI
BEFORE SHRI G.D.AGRAWAL, HON'BLE PRESIDENT
&
SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER
ITA No.-3628/Del/2015
(Assessment Year: 2006-07)
ITO vs Uncle Nephew Impex Pvt. Ltd.
Ward-27(1), A-1/69,
Room No. 119, Panchsheel Enclave
C.R.Building New Delhi
New Delhi PAN : AAACU7383B
Assessee by Ms. Vidh Agrawal, CA
Revenue by Shri G. Johnson, Sr. DR
Date of Hearing 11.10.2018
Date of Pronouncement 11.10.2018
ORDER
PER SUDHANSHU SRIVASTAVA, J.M.
This appeal is filed by the department against order dated
24.03.2015 passed by the Ld. Commissioner of Income Tax
(Appeals), XXII, New Delhi for assessment year 2006-07.
2. At the outset, It is brought to our notice that the quantum
involved in this case being less than Rs. 20 lacs, squarely falls
within the ambit of Circular No. 3/2018 dated 11.07.2018 issued
by the Central Board of Direct Taxes prescribing the tax effect for
preferring appeals before Tribunal by the revenue.
2 ITA NO. 3628/Del/2015
3. After perusing the materials available on record, we find that
the amount disputed before us is below the tax effect limit
prescribed by CBDT vide Circular No. 3/2018 dated 11.07.2018
for preferring appeals before tribunal by the revenue. On perusal
of the Circular No. 3/2018 dated 11.07.2018 and the materials
available on record, Ld. Sr. DR could not point out as to how and
why such a Circular is not applicable to the facts of the case. We
also find that the Circular makes it very clear that the revised
monetary limits shall apply retrospectively to pending appeals
also. We find that the Circular is binding on the tax authorities.
Hence, we hold that the appeal of the revenue deserves to be
dismissed in terms of low tax effect vide Circular No. 3/2018
dated 11.07.2018.
3.1 However, we also note that vide CBDT's Instructions dated
20.08.2018 bearing F. No. 279/Misc.142/2007-ITJ (Pt), there has
been an amendment to Para 10 of the Circular No. 3 of 2018 dated
11.07.2018 wherein the said Para 10 has been amended as under:-
"10. Adverse judgments relating to the following issues should be
contested on merits notwithstanding that the tax effect entailed is
less than the monetary limits specified in para 3 above or there is no
tax effect.
(a) Where the Constitutional validity of the provisions of an Act or
Rule is under challenge, or
(b) Where Board's order, Notification, Instruction or Circular has been
held to be illegal or ultra vires, or
(c) Where Revenue Audit objection in the case has been accepted by
the Department, or
3 ITA NO. 3628/Del/2015
(d) Where addition relates to undisclosed foreign
income/undisclosed foreign assets (including financial
assets)/undisclosed foreign bank account.
(e) Where addition is based on information received from external
sources in the nature of law enforcement agencies such as CBI/
ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI).
(f) Cases where prosecution has been filed by the Department and is
pending in the Court. "
3.2 After going through the records before us, we are of the
opinion that the appeal is not covered by any of the aforesaid
exceptions as enumerated in the aforesaid amendment to the
Instructions and, therefore, delaying the disposal of the appeals by
waiting for the Report from the Field Officers will not be in true
spirit of the Circular. Accordingly, we deem it fit to treat the appeal
as dismissed with the liberty to the Department to seek a recall by
filing a Misc. Application before us in cases the Department's
Appeal fall in any of the above exceptions. Accordingly, in view of
the CBDT's Circular No. 3 of 2018 dated 11.7.2018, the captioned
appeals by the Revenue are dismissed in limine.
4. In the final result, the appeal of the Revenue stand dismissed.
Order pronounced in the open court on 11.10.2018
Sd/- Sd/-
(G.D.AGRAWAL) (SUDHANSHU SRIVASTAVA)
PRESIDENT JUDICIAL MEMBER
Dated: 11.10.2018
*BR*
Copy forwarded to:
1. Appellant
2. Respondent
4 ITA NO. 3628/Del/2015
3. CIT
4. CIT(Appeals)
5. DR: ITAT
TRUE COPY
ASSISTANT REGISTRAR
ITAT NEW DELHI
Date of dictation 11.10.2018
Date on which the typed draft is placed before the 11.10.2018
dictating Member
Date on which the typed draft is placed before the 11.10.2018
Other Member
Date on which the approved draft comes to the Sr. 11.10.2018
PS/PS
Date on which the fair order is placed before the 11.10.2018
Dictating Member for pronouncement
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PS/PS
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website of ITAT
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Registrar for signature on the order
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