Sh. Amit Kumar, Delhi V. ITO, New Delhi

CO 130/DEL/2015

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2119 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 14-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S C GUPTA
• Assessee Lawyers: K K JAISWAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI J.S. REDDY, ACCOUNTANT MEMBER ITA NO. 5168/DEL/2014 ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER, VS. SH. AMIT KUMAR, PROP. WARD-29(1), M/S P.R. INTERNATIONAL, ROOM NO. 203, DRUM SHAPE 4422/5, GANESH BAZAR, BUILDING, CLOTH MARKET, I.P. ESTATE, NEW DELHI 2 DELHI 110 006 (PAN: AAVPK0217C) (APPELLANT) (RESPONDENT) AND CROSS OBJECTION NO. 130/DEL/2015 (IN ITA NO. 5168/DEL/2014) ASSESSMENT YEAR: 2006-07 SH. AMIT KUMAR, VS. ITO, WARD 29(1) AK-15, SHALIMAR BAGH, DRUM SHAPED BUILDING, DELHI 110 0088 NEW DELHI (PAN:AAVPK0217C) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. K.K. JAISWAL, DR RESPONDENT BY : SH. S.C. GUPTA, AR DATE OF HEARING : 20-01-2016 DATE OF ORDER : 03-02-2016 ORDER PER H.S. SIDHU, J.M. THE DEPARTMENT HAS FILED THE APPEAL AND ASSESSEE H AS FILED THE CROSS OBJECTION WHICH IS EMANATE FROM THE ORDER DATED 13.6.2014 OF LD. CIT(A)-XXV, NEW DELHI PERTAINING TO ASSESSMENT YEAR 2006-07. THE GROUNDS RAISED IN THE REVENUES APPEAL READS AS UNDER:- ITA NO. 5168/DEL/2014 & CO NO. 130/DEL/2015 2 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN LAW IN DELETING ADDITION OF RS. 20,36, 333/- MADE BY THE AO OF UNDISCLOSED INCOME WITHOUT APPRECIATING THE FACT TH AT THE ADDITION WAS MADE ON THE BASIS OF INFORMATION PROVIDED BY THE INVESTI GATING WING OF THE DEPARTMENT DURING SEARCH OPERATION AND IN THE STA TEMENT AND DATA GATHERED DURING SEARCH REVEALED THAT THE ASSESSEE IS ONE OF THE BENEFICIARY OF ACCOMMODATION ENTRY. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN LAW IN DIRECTING THE AO TO CONSDIER IN ITIATION OF APPROPRIATE PROCEEDINGS ON RECEIPT OF CONCRETE INCRIMINATING IN FORMATION OR EVIDENCE FROM THE DIRECTOR OF INCOME TAXD (INV.) WITHOUT APPRICAT ING THE FACT THAT THE DCIT, CENTRAL CIRCLE-46, MUMBAI HAS PROVIDED THE INFORMAT ION ON THE BASIS OF SEARCH CONDUCTRED BY THE INVESTIGATION WING OF THE DEPARTM ENT AND THE REOPENING WAS MADE ON THE BASIS OF SAID INFORMATION. 3. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RI GHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 3. WE FIND THAT REVENUE IN THE GROUNDS OF APPEAL BE FORE THE TRIBUNAL HAS CHALLENGED THE DELETION OF ADDITION OF RS. 20,36,3 33/- RAISED VIDE GROUND NO. 1, AS AFORESAID. 4. FROM THE ABOVE, WE FIND THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/200 7- ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE , THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS CIRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HE REUNDER: S NO APPEALS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - ITA NO. 5168/DEL/2014 & CO NO. 130/DEL/2015 3 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCR IBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIB UNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 AB OVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME- TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, T HEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE PRESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE A MOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 6. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE WIT HDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALSO OF THE VIE W THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. ASSESSEES CROSS OBJECTION 7. AS FAR AS ASSESSEES CROSS OBJECTION IS CONCERNE D, THE SAME IS WAS NOT PRESSED BY THE LD. COUNSEL OF THE ASSESSEE, HENCE, THE SAME IS DISMISSED AS NOT PRESSED. ITA NO. 5168/DEL/2014 & CO NO. 130/DEL/2015 4 8. IN THE RESULT, THE REVENUES APPEAL AS WELL AS ASSESSEES CROSS OBJECTION STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03/02/2016. SD/- SD/- (J.S. REDDY) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICI AL MEMBER DATED:03/2/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR