M/s. Sheetal International Pvt. Ltd., New Delhi V. DCIT, New Delhi

CO 134/DEL/2013

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2519 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 21-11-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 27-08-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Assessee Lawyers: ASHU GOLAL
• Keywords: Retrospective amendment; Additional evidence; Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI A. N. MISHRA, ACCOUNTANT MEMBER ITA NO.1786/DEL/2013 ASSESSMENT YEAR : 2005-06 DCIT, CENTRAL CIRCLE-2, NEW DELHI VS. SHEETAL INTERNATIONAL PVT. LTD., G-81/A, 2 ND FLOOR, VIJAY CHOWK, LAXMI NAGAR, NEW DELHI. PAN : AAACS 3368 N (APPELLANT) (RESPONDENT) C.O. NO.134/DEL/2013 (IN ITA NO.1786/DEL/2013) ASSESSMENT YEAR : 2005-06 SHEETAL INTERNATIONAL PVT. LTD., G-81/A, 2 ND FLOOR, VIJAY CHOWK, LAXMI NAGAR, NEW DELHI. VS. DCIT, CENTRAL CIRCLE-2, NEW DELHI PAN : AAACS 3368 N (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI S. S. RANA, CIT-DR ASSESSEE BY : SHRI ASHU GOLAL, CA DATE OF HEARING : 21-11-2016 DATE OF PRONOUNCEMENT : 30-11-2016 O R D E R PER DIVA SINGH, J.M. : THE CAPTIONED APPEAL FILED BY THE REVENUE IS AGAINS T THE ORDER OF CIT(A)-III, NEW DELHI DATED 14.01.2013 PERTAINING T O ASSESSMENT YEAR 2005-06 PASSED UNDER SECTION 153C/143(3) OF THE INC OME-TAX ACT, 1961 (IN SHORT THE ACT). THE ASSESSEE HAS ALSO FILED CROSS OBJECTION AGAINST THE APPEAL OF THE REVENUE. 2. BOTH THE APPEAL AND CROSS OBJECTION RELATING TO THE ASSESSEE EMANATING FROM THE SAME ASSESSMENT YEAR ARE BEING D ISPOSED OF BY THIS CONSOLIDATED ORDER. 2 ITA NO.1786/DEL/2013 CO NO.134/DEL/2013 3. IN THE APPEAL OF THE REVENUE, THE REVENUE HAS RA ISED THE FOLLOWING GROUNDS :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.25,00,000/ - MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNSECURED LOAN IN V IEW OF THE PROVISIONS OF SECTION 68 OF THE INCOME TAX ACT, 196 1. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE CIT(A) HAS ERRED IN NOT APPRECIATING THE FACTS OF THE CASE THAT THE ASSESSEE HAD NOT DISCHARGED ITS ONUS OF PROVIDING T HE GENUINENESS AND CREDITWORTHINESS OF THE TRANSACTION , AS NO COPY OF ITR AND BANK STATEMENT WAS PROVIDED EXCEPT CONFI RMATION OF SH. N. K. JAIN. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE CIT(A) HAS ERRED, IN VIOLATION OF RULE 46A OF THE INCOME T AX RULES, 1962, BY NOT FOLLOWING THE DECISION OF HONBLE DELH I HIGH COURT IN THE CASE OF MANISH BUILDWELL PVT. LTD. 204 TAXMAN 106, WHEREIN IT WAS HELD BY THE HONBLE JURISDICTIO NAL HIGH COURT TO GIVE TWO STAGE OPPORTUNITY UNDER RULE 46A, I.E. FIRST BEFORE ADMISSION OF ADDITION EVIDENCES AND SECOND A FTER ADMISSION OF ADDITIONAL EVIDENCES. 4. THE ORDER OF THE CIT(A) IS ERRONEOUS AND IS NOT TENABLE ON FACTS AND IN LAW. 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEN D ANY /ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF TH E HEARING OF THE APPEAL. 4. THE LD. AR, SHRI ASHU GOLAL INVITING ATTENTION T O THE QUANTUM OF RELIEF GRANTED BY THE CIT(A) SUBMITTED THAT THE DEP ARTMENTAL APPEAL SHOULD BE DISMISSED ON THE GROUNDS OF LOW TAX EFFECT RELYI NG UPON THE LATEST CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 OF CBDT. THE CROSS OBJECTION FILED BY THE ASSESSEE IN THE CIRCUMSTANCES IT WAS S UBMITTED MAY BE DISMISSED AS INFRUCTUOUS. 5. SHRI S. S. RANA, CIT-DR CONSIDERING THE GROUNDS AND THE ADDITIONS AT STAKE FOR THE REVENUE FAIRLY SUBMITTED THAT IN TERM S OF THE CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER 2015, THE DEPARTMENTAL APPEAL MAY BE TREATED AS NOT PRESSED. 6. IT MAY NOT BE OUT OF PLACE TO REFER TO SECTION 2 68A OF THE INCOME-TAX ACT, 1961 WHICH HAS BEEN INSERTED BY THE FINANCE AC T, 2008 WITH 3 ITA NO.1786/DEL/2013 CO NO.134/DEL/2013 RETROSPECTIVE EFFECT FROM 01.04.1999 WHICH MANDATES THE CBDT TO ISSUE NOTIFICATIONS AND CIRCULARS. CIRCULAR NO.21/2015 D ATED 10TH DECEMBER, 2015 OF CBDT, WHICH HAS REVISED THE MONETARY LIMIT FOR FILING OF THE DEPARTMENTAL APPEAL TO THE ITAT AT RS.10 LAC HAS BE EN ISSUED UNDER THE SAID PROVISIONS BY THE CBDT. VIDE PARA 10 OF THE AFORES AID CIRCULAR PARA 3 HAS BEEN MADE APPLICABLE RETROSPECTIVELY. CONSIDERING THE SETTLED LEGAL PRECEDENT THAT THE BOARDS INSTRUCTIONS OR DIRECTIO NS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX ACT, 196 1 ARE BINDING ON THE AUTHORITIES, WE DISMISS THE DEPARTMENTAL APPEAL CON SIDERING THE MATERIAL AVAILABLE ON RECORD. 7. THE C.O. WAS FILED BY THE ASSESSEE IS DISMISSED INFRUCTUOUS WHEN THE APPEAL HAS BEEN SET ASIDE TO BE ALREADY DISMISSED. THE C.O. IS ACCORDINGLY DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE AND C.O . OF THE ASSESSEE ARE DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER, 2016. SD/- SD/- (A. N. MISHRA) (DIVA SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMB ER DATED : 30-11-2016. SUJEET COPY OF ORDER TO: - 1) THE APPELLANT; 2) THE RESPONDENT; 3) THE CIT; 4) THE CIT(A)-, NEW DELHI; 5) THE DR, I.T.A.T., NEW DELHI; BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI