M/s. Penguin Farms Pvt. Ltd., New Delhi V. ACIT, Kanpur

CO 193/DEL/2015

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3969 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 7 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-07-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 16-08-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 12-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S R SENAPATI
• Keywords: Tax effect
• Section: 143(3); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBE R & SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 5458/DEL/2014 ASSESSMENT YEAR: 2007-08 ACIT CENTRAL CIRCLE-1 KANPUR VS PENGUIN FARMS PVT. LTD. 201, SURYA KIRAN BUILDING, 19, K.G. MARG, NEW DELHI. PAN NO. AAACP1267F APPELLANT RESPONDENT & CROSS OBJECTION NO. 193/DEL/2015 (IN ITA NO. 5458/DEL/2014) ASSESSMENT YEAR: 2007-08 PENGUIN FARMS PVT. LTD. 201, SURYA KIRAN BUILDING, 19, K.G. MARG, NEW DELHI. PAN NO. AAACP1267F VS ACIT CENTRAL CIRCLE-1 KANPUR APPELLANT RESPONDENT REVENUE BY SH. S.R. SENAPATI, SR. DR ASSESSEE BY NONE ORDER PER SHRI BHAVNESH SAINI, J.M. DEPARTMENTAL APPEAL AS WELL AS CROSS OBJECTION BY T HE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF LD. CIT( APPEALS)-III, DELHI DATED 15.12.2011 FOR AY 2007-08. DATE OF HEARING 19.07.2018 DATE OF PRONOUNCEMENT 19.07.2018 2 ITA NO. 5458/DEL/ 2014 & CO NO. 193/DEL/2015 2. IN THIS CASE, THE AO PASSED THE ASSESSMENT ORDER U/S 153C READ WITH SECTION 143(3) OF THE INCOME TAX ACT, 196 1 (THE ACT) DATED 29.12.2010, WHEREBY ADDITION OF RS. 47,02,750 /- WAS MADE ON ACCOUNT OF UNACCOUNTED EXPENSES. THE LD. CIT(A) DELETED THE ADDITION. HOWEVER, THE OTHER GROUNDS OF APPEAL REG ARDING CHARGING OF INTEREST U/S 234B, INITIATION OF PROCEE DINGS U/S 153C OF THE ACT WERE NOT ADJUDICATED BECAUSE OF THE DELE TION OF THE ADDITION ON MERIT. 3. ADMITTEDLY, THE TAX EFFECT IN THE DEPARTMENTAL A PPEAL IS LESS THAN RS. 20 LAKHS. VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 ISSUED BY CBDT, IT HAS BEEN DIRECTED THAT THE DEPAR TMENT SHALL NOT FILE APPEAL BEFORE THE TRIBUNAL IN CASE WHERE T HE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 20 LAKHS. IT IS ALSO DIRECTED THAT THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNALS. P ENDING APPEALS BELOW THIS SPECIFIED TAX EFFECT MAY BE WITHDRAWN/NO T PRESSED. LD. DR IN VIEW OF THE BOARD CIRCULAR ABOVE DID NOT PRES S THE DEPARTMENTAL APPEAL. THE CASE OF THE DEPARTMENT WO ULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE ABOVE BOARD CIRCU LAR. 4. IN THE RESULT, THE DEPARTMENTAL APPEAL IS NOT MA INTAINABLE AS THE APPEAL IS FILED AGAINST THE BOARD INSTRUCTIONS REFERRED TO ABOVE. THEREFORE, THE DEPARTMENTAL APPEAL IS DISMISSED AS WITHDRAWN/NOT PRESSED. 5. IN THE CROSS OBJECTION, THE ASSESSEE STATED THAT THE LD. CIT(A) DID NOT ADJUDICATE UPON THE OTHER GROUNDS OF APPEAL S I.E. CHARGING 3 ITA NO. 5458/DEL/ 2014 & CO NO. 193/DEL/2015 OF INTEREST U/S 234B OF THE ACT AND INITIATION OF P ROCEEDINGS U/S 153C OF THE ACT. THE CROSS OBJECTION IS TIME BARRE D BY NINE DAYS. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING OF THE ABOVE MATTERS. NO APPLICATION HAS BEEN FILED F OR COORDINATION OF DELAY IN FILING THE CROSS OBJECTION BEYOND TIME. FURTHER WHEN SUBSTANTIVE ADDITIONS HAVE BEEN DELETED BY THE LD. CIT(A) AND DEPARTMENTAL APPEAL IS DISMISSED FOR LOW TAX EFFECT , THE GROUNDS RAISED IN THE CROSS OBJECTION ARE LEFT WITH ACADEMI C DISCUSSION ONLY. IN VIEW OF THE ABOVE DISCUSSION, THE CROSS O BJECTION IS DISMISSED BEING TIME BARRED. 6. IN THE RESULT, THE DEPARTMENTAL APPEAL AS WELL A S CROSS OBJECTION OF ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19.07.2018 SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19.07.2018 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 5458/DEL/ 2014 & CO NO. 193/DEL/2015 DATE OF DICTATION 19.07.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 19.07.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 19.7.18 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 19.7.18 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 19.7.18 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 19.7.18 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 19.7 .18 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER