M/s. Gurudev Financial Services P.Ltd., New Delhi V. DCIT, New Delhi

CO 327/DEL/2015

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2134 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 14-12-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT GOEL
• Assessee Lawyers: RAVI JAIN
• Keywords: Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NOS. 5638 & 5639/DEL/2015 ASSESSMENT YEAR: 2006-07 & 2007-08 DY. COMMISSIONER OF INCOME TAX, VS. M/S GURUDEV FI NANCIAL SERVICES (P) CC-31, ROOM NO. 319, E-2, ARA LTD., 102, HARSHA HO USE, CENTRE, JHANDEWALAN EXTN., KARAMPURA COMMERCIAL C OMPLEX, NEW DELHI NEW DELHI 15 (PAN: AAACG0278K) (APPELLANT) (RESPONDENT) AND CROSS OBJECTION NOS. 326 & 327/DEL/2015 (IN ITA NO. 5638 & 5639/DEL/2015) ASSESSMENT YEAR: 2006-07 & 2007-08 M/S GURUDEV FINANCIAL SERVICES (P) VS. DY. COMMISS IONER OF INCOME TAX LTD., 102, HARSHA HOUSE, CC-31, ROOM NO. 319, E-2 , ARA KARAMPURA COMMERCIAL COMPLEX CENTRE, JHANDEWALAN E XTN., NEW DELHI 15 NEW DELHI (PAN: AAACG0278K) (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. RAVI JAIN, CIT(DR) RESPONDENT BY : SH. AMIT GOEL, CA DATE OF HEARING : 03-02-2016 DATE OF ORDER : 05-02-2016 ORDER PER H.S. SIDHU, J.M. THE DEPARTMENT HAS FILED THESE APPEALS AND ASSESSE E HAS FILED THESE CROSS OBJECTIONS WHICH ARE EMANATE FROM THE RESPECTIVE OR DERS OF THE LD. CIT(A)-30, NEW DELHI PERTAINING TO ASSESSMENT YEARS 2006-07 & 200 7-08. SINCE THE ISSUES INVOLVED IN THESE APPEALS AND CROSS OBJECTIONS ARE IDENTICAL AN D SIMILAR, HENCE, THEY ARE BEING HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON O RDER FOR THE SAKE OF CONVENIENCE. ITA NOS. 5638&5639/DEL/2015 & CO NOS. 326&327/DEL/ 2015 2 2. THE GROUNDS RAISED IN BOTH THE REVENUES APPEALS PERTAINING TO ASSESSMENT YEAR 2006-07 & 2007-08 READS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING ADDITION MADE U/S. 68 OF THE INCOME TAX ACT WHICH IS WRONG AND BAD IN LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF ADMINISTRATIVE EXPENSES WHICH IS WRONG AND BAD IN LAW. 3. THE GROUNDS OF APPEAL ARE WITHOUT PREJUDICE TO EACH OTHER. 4. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTE R OR FOREGO ANY GROUND(S) OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. AT THE THRESHOLD, LD. AUTHORISED REPRESENTATIVE OF THE ASSESSEE STATED THAT IN BOTH THE APPEALS FILED BY THE REVENUE THE TAX EFFECT IS BELOW THE PRESCRIBED LIMIT, HENCE, BOTH THE REVENUES APPEALS MAY BE DISMISSED. 3.1 LD. DR DID NOT CONTROVERT THE SUBMISSIONS OF TH E LD. COUNSEL OF THE ASSESSEE. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECORDS, W E FIND THAT THE TAX EFFECT IN BOTH THE REVENUES APPEAL IS LESS THAN RS.10,00, 000/-, THEREFORE, THE DEPARTMENTS APPEALS ARE NOT MAINTAINABLE, IN VIEW OF THE CIRCU LAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE A FORESAID 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 NOS. 5638&5639/DEL/2015 & CO NOS. 326&327/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 APPEALS ARE LESS THAN THE AMOUNT 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 APPEALS BEFORE THE TRIBUNAL. WE ARE ALSO OF THE VI EW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, BOTH THE REVENUES APPEALS ARE DISMISS ED. ASSESSEES CROSS OBJECTION 7. AS FAR AS ASSESSEES CROSS OBJECTION ARE CONCER NED, THE SAME ARE ONLY SUPPORTIVE THE LD. CIT(A)S ORDERS. SINCE WE HAVE DISMISSED BO TH THE APPEALS OF THE REVENUE AS AFORESAID, HENCE, BOTH THE CROSS OBJECTIONS FILED BY THE ASSESSEE HAVE BECOME INFRUCTUOUS AND DISMISSED AS SUCH. ITA NOS. 5638&5639/DEL/2015 & CO NOS. 326&327/DEL/ 2015 4 8. IN THE RESULT, BOTH THE REVENUES APPEALS AS WE LL AS BOTH THE ASSESSEES CROSS OBJECTIONS STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/02/2016. SD/- SD/- (L.P. SAHU) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICI AL MEMBER DATED: 05/2/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR