DCIT, NEW DELHI vs. M/S. REMARKABLE ESTATE PVT. LTD., NEW DELHI

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ITA 510/DEL/2015Status: DisposedITAT Delhi28 December 2017AY 2006-074 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that Circular No. 21/2015, which specifies the tax effect limit, applies retrospectively to pending appeals. Therefore, the Revenue's appeal was covered by the low tax effect criteria.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee pointed out that the tax effect was less than Rs. 10 lakhs. The Revenue contended that appeals filed prior to a certain circular were not subject to the tax effect limit.

What were the issues?

Whether Circular No. 21/2015, regarding the monetary limit for appeals, applies retrospectively to pending appeals before the ITAT.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI

Before: SHRI R. K. PANDA & MS SUCHITRA KAMBLE

For Respondent: Smt. Rachna
Hearing: 27.12.2017Pronounced: 28.12.2017
2.

The Ld. DR submitted that as per the decision of the Hon'ble Supreme Court in case of DIT Vs. S.R.M.B Dairy Farming (P) Ltd. dated 23/11/2017 and CIT Bangalore Vs. M/s Gemini Distilleries order dated 12th October 2017. The appeals filed prior to Circular dated 10th December 2015 being Circular No. 21/2015 will not come under the purview of tax effect of less than 10 lakhs.

3.

The Ld. AR relied upon the Circular No. 21/2015 dated 10th December, 2015 and pointed out para 10 of the said Circular that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals.

4.

We have heard both the parties and perused the Apex Court decision in case of DIT Vs. S.R.M.B Dairy Farming (P) Ltd. and M/s Gemini Distilleries. In-fact, both the decisions of the Apex Court are related to the Circular dated 9/2/2011. The Hon’ble Apex Court has categorically pointed out that Circular dated 9/2/20111 cannot be given retrospective effect. Thus, both the decision of the Apex Court are related to Circular dated 9/2/2011 and not that of Circular No. 21/2015 dated 10th December, 2015. After going to the Circular dated 9/2/2011, it can be seen that there was no specific mention about the retrospective effect of the said Circular dated 9/2/2011 but in respect of Circular dated 20/12/2015 in Para 10, there is a specific mention that this instruction will apply retrospectively to pending appeals. The present appeal is field on 23rd January 2015. Therefore, the Circular will apply and the contention of the Ld. DR will not sustain as both the Apex Court decisions are dealing with Circular dated 9/2/2011. Therefore, in light of Circular dated 10/12/2015, this appeal filed by the Revenue comes under the purview of Tax Effect below 10 lakhs . In result, appeal of the Revenue is dismissed for low tax effect as per Circular dated 10/12/2015.

5.

In result, appeal of the Revenue is dismissed.

Order pronounced in the Open Court on 28th December 2017.

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