M/s. IL&FS Environmental Infrastructure and Services Ltd., New Delhi V. DCIT, New Delhi

CO 3/DEL/2015

• Counselvise Citation: [2016] 112 COUNSELVISE.COM (IT) 4110 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 23-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 12-01-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MAHUA BHATTACHARJEE
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI: JUDICIAL MEMBER ITA NO. 2029/DEL/2014 ASSTT. YR: 2010-11 DCIT, CIRCLE 33(1), VS. IL & FSS ENVIRONMENTAL INFR ASTRUCTURE AND NEW DELHI. SERVICES LTD. 4 TH FLOOR, DR. GOPAL DAS BHAWAN, 28, BARAKHAMBA ROAD, NEW DELHI. PAN: AABCI 7370 R C.O. NO. 3/DEL/2015 ( OUT OF ITA NO. 2029/DEL/2014) ASSTT. YR: 2010-11 IL & FSS ENVIRONMENTAL VS. DCIT, CIRCLE 33(1), INFRASTRUCTURE AND NEW DELHI. SERVICES LTD. ( APPELLANT ) (RESPONDENT) DEPARTMENT BY : SHRI RAJESH KUMAR SR. DR ASSESSEE BY : SMT. MAHUA BHATTACHARJEE CA DATE OF HEARING : 20/06/2016. DATE OF ORDER : 23/06/2016. O R D E R PER S.V. MEHROTRA, A.M: THE REVENUE IS IN APPEAL AND THE ASSESSEE HAS FILE D CROSS-OBJECTIONS AGAINST THE ORDER DATED 31.12.2013, PASSED BY THE L D. CIT(A)-XV, NEW DELHI, RELATING TO A.Y. 2010-11. 2 2. SOLE EFFECTIVE GROUND RAISED BY THE REVENUE IN I TS APPEAL IS AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS . 25,08,782/- MADE OUT OF SELLING & DISTRIBUTION EXPE NSES. 3. LD. DR AT THE OUTSET SUBMITTED THAT, PRIMA FACIE , THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN RS. 10 LAKHS. THEREFORE, IN TERMS OF CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015, STI PULATING THAT NO DEPARTMENTAL APPEAL, INVOLVING TAX EFFECT BELOW RS .10 LAKHS, SHALL BE FILED BEFORE THE ITAT AND FURTHER THAT SUCH INSTRUCTION W OULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE S PECIFIED TAX LIMIT OF RS.10 LAKH MAY BE WITHDRAWN/NOT PRESSED, THE DEPART MENT MAY BE ALLOWED TO WITHDRAW THE APPEAL, PROVIDED THAT IT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEAL AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR I SSUE ARISES BEFORE THE ITAT, WHERE THE APPEAL IS ABOVE THE TAX LIMIT, AS PRESCRI BED IN THE BOARDS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 4. AFTER CONSIDERING RIVAL SUBMISSIONS, THE DEPAR TMENTAL APPEAL IS TREATED AS WITHDRAWN IN TERMS OF BOARDS CIRCULAR, REFERRED TO ABOVE. 5. THE CROSS OBJECTION FILED BY THE ASSESSEE ONLY S UPPORTS THE ORDER OF LD. CIT(A). SINCE THE REVENUE HAS WITHDRAWN ITS APPEAL ON ACCOUNT OF TAX EFFECT, THE CROSS OBJECTION FILED BY THE ASSESSEE HAS BEC OME INFRUCTUOUS AND IS LIABLE TO BE DISMISSED ACCORDINGLY. 3 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED HAV ING BEEN WITHDRAWN AND THE ASSESSEES CROSS-OBJECTION IS DISMISSED, A S INFRUCTUOUS. ORDER PRONOUNCEMENT IN OPEN COURT ON 23/06/2016. SD/- SD/- (BEENA A. PILLAI) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 23/06/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.