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DCIT, Central Circle-18, New Delhi Vs. Indirapuram Habitat Centre Pvt. Ltd, 702-704, D-Mall, Netaji Subhash Place, Pitampura, New Delhi
August, 26th 2019

Referred Sections:
section 268A of the Income-tax Act, 1961.”

 

        INCOME TAX APPELLATE TRIBUNAL
           DELHI BENCH "E": NEW DELHI
  BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER
                     AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER

                    ITA No. 5687/Del/2015
                  (Assessment Year: 2011-12)
     DCIT,                   Vs. Indirapuram Habitat Centre Pvt. Ltd,
Central Circle-18,                   702-704, D-Mall, Netaji Subhash
   New Delhi                                 Place, Pitampura,
                                                New Delhi
                                          PAN: AAGCS4747R
   (Appellant)                                 (Respondent)
  Revenue by :                        Ms Parmita M. Biswas, CIT DR
                                         Ms Rinku Singh, Sr. DR
  Assessee by :                            Shri Ved Jain, Adv
                                          Shri Ashish Goel, CA

                  ITA No. 2588/Del/2016
                (Assessment Year: 2011-12)
     ACIT,                 Vs.      M/s. Grant Thornton India LLP
  Circle-52(1),                    (formerly Grant Thornton), L-41,
   New Delhi                         Connaught Circus, New Delhi
                                         PAN: AACFG9740K
   (Appellant)                               (Respondent)
  Revenue by :                         Ms. Rinku Singh, Sr. DR
  Assessee by :                        Ms. Sweety Kothari, CA

                ITA No. 4432 & 4433/Del/2016
            (Assessment Year: 2005-06 & 2007-08)
      ACIT,                    Vs.       Magnum International Ltd,
 Central Circle-20,                  (formerly known as Magnum Steel
    New Delhi                                  and Power Ltd),
                                    312, Essel House, 10, Asaf Ali Road,
                                                 New Delhi
                                           PAN: AAACM8549B
    (Appellant)                                 (Respondent)
   Revenue by :                       Ms. Parmita M. Biswas, CIT DR
   Assessee by :                          Shri Rajiv Saxena, Adv
                                         Ms. Sumangla Saxena, Adv
                                          Shri Shyam Sunder, AR

     Date of Hearing                            22/08/2019
  Date of pronouncement                         26/08/2019

                                                                    Page | 1
                                        ORDER



PER BENCH

1.   These are the appeals filed by Department against the order of respective the ld
     CIT(A) for respective assessment Years.
2.   At the outset of the hearing itself, the ld. ARs 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.   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 rival parties 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
                                                                                   Page | 2
                   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."


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 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.


                                                                                     Page | 3
6.        In the result, appeal filed by the department are dismissed.

          Order pronounced in the open court on 26/08/2019.

               -Sd/-                                            -Sd/-
           (KULDIP SINGH)                                 (PRASHANT MAHARISHI)
          JUDICIAL MEMBER                                  ACCOUNTANT MEMBER

Dated: 26/08/2019
A K Keot

Copy forwarded to

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




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