M/s Offcom Systems Pvt. Ltd., New Delhi V. DCIT, New Delhi

CO 17/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6994 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 17 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 18-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 31-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DALIP KAUL CA CONSOLIDATED
• Keywords: Tax effect
• Section: 143(3); 254(2)

Judgement Text

ITA NO.- 5469/DEL/2016 AND OTHERS. OFFCOM SYSTEMS PVT. LTD. PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBE R AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 5469/DEL/2016 ( ASSESSMENT YEAR: 2012-13) ACIT, CIRCLE 19(1), NEW DELHI. VS. M/S OFFCOM SYSTEMS PVT. LTD., C-20B, GROUND FLOOR, KALKAJI, NEW DELHI-110019. PAN NO: AAACO0809N APPELLANT RESPONDENT ITA NO:- 5982/DEL/2016 ( ASSESSMENT YEAR: 2013-14) ACIT, CIRCLE 19(1), NEW DELHI. VS. M/S OFFCOM SYSTEMS PVT. LTD., C-20B, GROUND FLOOR, KALKAJI, NEW DELHI-110019. PAN NO: AAACO0809N APPELLANT RESPONDENT C.O. NO.-17/DEL/2017 ARISING FROM ITA NO:- 5982/DEL/2016 ( ASSESSMENT YEAR: 2013-14) M/S OFFCOM SYSTEMS PVT. LTD., C-20B, GROUND FLOOR, KALKAJI, NEW DELHI-110019. VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRLCE-1, 9(1), NEW DELHI. PAN NO: AAACO0809N APPELLANT RESPONDENT ITA NO.- 5469/DEL/2016 AND OTHERS. OFFCOM SYSTEMS PVT. LTD. PAGE 2 OF 6 REVENUE BY : MS. RAKHI VIMAL, SR. DR ASSESSEE BY : SHRI DALIP KAUL, CA CONSOLIDATED ORDER PER ANADEE NATH MISSHRA, AM (A) THE AFOREMENTIONED APPEALS BY REVENUE AND CROSS OB JECTION (CO, FOR SHORT) BY ASSESSEE, ARE TAKEN UP TOGETHER FOR THE SAKE OF CONVENIENCE AND BREVITY, ARE HEREBY DISPOSED OFF THROUGH THIS CONSOLIDATED ORDER. GROU NDS TAKEN IN THESE APPEALS OF REVENUE AND THE CROSS OBJECTION OF THE ASSESSEE ARE AS UNDER: ITA NO.- 5469/DEL/2016 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 1,07,39,037/- MADE BY THE AO ON ACCOUNT OF ADVANCE FOR AMC WITHOUT APPRECIATING THE FACTS THAT THERE WERE NO ADVANCES FOR AMC WITHOUT APPRECIATING THE FACTS THAT THERE WERE NO ADVANCES APPEARING IN THEIR BOOKS OF ACCOUNTS. 2. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 4,17,030/- MA DE BY THE AO ON ACCOUNT OF COMMISSION PAID WITHOUT APPRECIATING THE FACTS THAT THE EXPENSES WERE NOT EXPENDED BY THE ASSESSEE IN CONNECTION TO ITS BUSIN ESS. 3. THE APPELLANT CRAVES TO BE ALLOWED TO ADD ANY FR ESH GROUND(S) OF APPEAL AND/OR DELETE OR AMEND ANY OF THE GROUND(S) OF APPE AL. ITA NO. 5982/DEL/2016 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 69,01,570/- M ADE BY THE AO ON ACCOUNT OF ADVANCE FOR AMC WITHOUT APPRECIATING THE FACTS THAT THERE WERE NO APPEARING IN THEIR BOOKS OF ACCOUNTS. ITA NO.- 5469/DEL/2016 AND OTHERS. OFFCOM SYSTEMS PVT. LTD. PAGE 3 OF 6 2. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 4,17,030/- MA DE BY THE AO ON ACCOUNT OF COMMISSION PAID WITHOUT APPRECIATING THE FACTS THAT THE EXPENSES WERE NOT EXPENDED BY THE ASSESSEE IN CONNECTION TO ITS BUSIN ESS. 3. THE APPELLANT CRAVES TO BE ALLOWED TO ADD ANY FR ESH GROUND(S) OF APPEAL AND/OR DELETE OR AMEND ANY OF THE GROUND(S) OF APPE AL. CO NO. 17/DEL/2017 THE RESPONDENT OBJECTS TO GROUND NO. 2 OF THE ABOV E APPEAL RELATING TO DELETION OF ADDITION OF RS. 417030/- MADE BY THE AS SESSING OFFICER. THERE IS NOT SUCH ADDITION TO THE INCOME ASSESSED U /S 143(3) OF THE INCOME TAX ACT 1961. THERE IS ONLY ONE GROUND I.E., GROUND NO .1. WE ARE UNABLE TO UNDERSTAND FROM WHERE THIS DISALLO WANCE HAS BEEN TAKEN BEFORE THIS HONBLE COURT. ONCE THE ASSESSMENT IS COMPLETED ONLY SUCH, ADDITION CAN BE TAKEN UP BEFORE APPELLATE FORUM WHICH ARE TH ERE IN THE ASSESSMENT ORDER. THERE IS NO DISALLOWANCE OUT OF COMMISSION HEAD OF EXPENSES. HENCE, WE OBJECT THE GROUND NO. 2 OF THE APPEAL. (B) AT THE OUTSET, LEARNED AUTHORIZED REPRESENTATIVE ( AR, FOR SHORT) FOR THE ASSESSEE BROUGHT TO OUR NOTICE, AT THE TIME OF HEAR ING, THAT TAX EFFECT IN THESE APPEALS FILED BY REVENUE IS BELOW RS. 50,00,000/-. BOTH SI DES, [REPRESENTATIVES OF REVENUE AND THE ASSESSEE] WERE IN AGREEMENT, AT THE TIME OF HEARING BEFORE US, THAT THE TAX EFFECT IN THE PRESENT APPEALS ARE BELOW RS. 50,00,0 00/-. VIDE RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIR CULAR NO. 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL HAS BEEN ENHANCED TO RS. 50,00,000/-. IN A SUBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F.NO. 279/MISC/M- 93/2018-ITJ, DATED 20/08/2019, IT ITA NO.- 5469/DEL/2016 AND OTHERS. OFFCOM SYSTEMS PVT. LTD. PAGE 4 OF 6 HAS BEEN CLARIFIED BY CBDT THAT THE AFORESAID REVIS ED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. HAVING REGARD TO T HE AFORESAID, LEARNED AR FOR THE ASSESSEE SUBMITTED THAT THE APPEALS WERE NOT MAINTA INABLE. THE LEARNED DEPARTMENTAL REPRESENTATIVE (LD. DR, FOR SHORT) ALSO DID NOT P RESS THESE APPEALS. THEREFORE, BOTH THESE APPEALS FILED BY REVENUE ARE DISMISSED, BEING NOT MAINTAINABLE; AND ALSO BEING NOT PRESSED. (B.1) THE LD. AR FOR THE ASSESSEE ALSO SUBMITTED TH AT THE CO OF ASSESSEE HAS BEEN FILED IN SUPPORT OF ORDER OF LD. CIT(A) TO OPPOSE T HE GROUND TAKEN IN REVENUES APPEAL. HOWEVER, THE CO HAS BECOME INFRUCTUOUS AND NEED NOT BE DECIDED ON MERITS ON DISMISSAL OF REVENUES APPEAL VIDE ITA NO.- 5982/DE L/2016. THE CROSS OBJECTION WAS NOT PRESSED BY LD. COUNSEL OF ASSESSEE, AT THE TIME OF HEARING. THE LD. DR FOR REVENUE WAS IN AGREEMENT WITH THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR ASSESSEE. IN VIEW OF THE FOREGOING, AND AS BOTH SIDES AGREE, THE CO IS DISMISSED BEING INFRUCTUOUS AND HAVING BEEN NOT PRESSED. (C) BEFORE WE PART, WE EXPRESSLY CLARIFY THAT REVE NUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT, 1961; SEEKING RESTORATION OF ONE OR MORE OF THESE A PPEALS IF IT IS FOUND THAT APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07.2018. ITA NO.- 5469/DEL/2016 AND OTHERS. OFFCOM SYSTEMS PVT. LTD. PAGE 5 OF 6 (D) IN THE RESULT, THESE TWO APPEALS FILED BY REVENUE A RE DISMISSED BEING NOT MAINTAINABLE AND THE CORRESPONDING CROSS OBJECTION FILED BY ASSESSEE IS DISMISSED BEING INFRUCTUOUS. OUR DECISION WAS ORALLY PRONOUN CED IN OPEN COURT AFTER CONCLUSION OF HEARING ON THE DATE OF HEARING. NOW THIS DETAIL ED WRITTEN ORDER IS PRONOUNCED IN THE OPEN COURT ON 18/10/2019. SD/- SD/- (SUSHMA CHOWLA) (ANADEE NATH MIS SHRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 18/10/2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 5469/DEL/2016 AND OTHERS. OFFCOM SYSTEMS PVT. LTD. PAGE 6 OF 6 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER