M/s. Bharat Marketics (Export), New Delhi V. DCIT, New Delhi

CO 334/DEL/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6595 (ITAT-DELHI)
• Duration Of Justice: 5 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-10-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-10-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 30-09-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS ANUSHA KHURANA
• Assessee Lawyers: T R TALWAR
• Keywords: Reopening of assessment; Additional evidence; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI I.P. BANSAL AND SHRI A.N. PAHUJA ITA NO. 3781/DEL/2011 ASSTT. YR: 2006-07 DCIT, CIR. 30(1), VS. M/S BHARAT MARKETICS (EXPO RT), NEW DELHI. 4299/4300, ANSARI ROAD, DARYAGANJ, NEW DELHI. PAN/GIR NO. AADFB5332P CO NO. 334/D/11 ( IN ITA NO. 3781/DEL/2011) ASSTT. YR: 2006-07 M/S BHARAT MARKETICS (EXPORT), VS. DCIT, CIR. 30( 1), 4299/4300, ANSARI ROAD, DARYAGANJ, NEW DELHI. NEW DELHI. (APPELLANT ) ( RESPONDENT ) DEPARTMENT BY : MRS. ANUSHA KHURANA, SR. DR ASSESSEE BY : SHRI T.R. TALWAR ADV. O R D E R PER I.P. BANSAL, J.M : THE APPEAL IS FILED BY THE REVENUE AND THE CROSS-O BJECTION BY THE ASSESSEE, BOTH ARE DIRECTED AGAINST THE ORDER OF TH E CIT(A) DATED 30-05-2011 FOR A.Y. 2006-07. 2. GROUND OF APPEAL RAISED BY THE REVENUE IS AS UND ER: IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE, TH E LD. CIT(A) HAS ERRED IN ALLOWING RELIEF OF RS. 6,48,000/-. SIN CE THE DECISION OF THE LD. CIT(A) IS BASED ON ADDITIONAL EVIDENCE G IVEN DURING ITA NO. 3781 & CO 334/DEL/11 DCIT VS. BHARAT MARKETICS 2 APPELLATE PROCEEDINGS, WHICH ARE NOT CORRECT AS PER FINANCIAL STATEMENTS ON RECORD FOR A.Y. 2005-06 & A.Y. 2006-0 7. 3. GROUND OF CROSS-OBJECTION RAISED BY THE ASSESSEE IS AS UNDER: ON THE FACT AND CIRCUMSTANCE OF THE CASE THE LEARN ED CIT(A) HAS ERRED:- IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER U /S 147/148 OF THE IT ACT WHEN THERE WAS NO FORMATION OF BELIEF/ S ATISFACTION ON HIS PART THAT THERE HAS BEEN ESCAPEMENT OF INCOM E CHARGEABLE TO TAX AND THAT THE ACTION TAKEN ONLY TO VERIFY AND SCRUTINIZE THE RETURN OF INCOME. 4. AT THE OUT SET IT WAS SUBMITTED BY THE LEARNED C OUNSEL FOR THE ASSESSEE THAT ONLY ADDITION WHICH HAS BEEN CHALLENGED IN THE PRESENT APPEAL IS A SUM OF RS. 6,48,000/-, THE TAX ON WHICH IS MUCH LESS TH AN RS. 3 LACS. HE SUBMITTED THAT PRESENT APPEAL HAS BEEN FILED ON 5 TH AUGUST, 2011 AND THEREFORE CBDT INSTRUCTION NO. 33/2011[F.NO.279/MIS C.-142/2007-ITJ] DATED 9-2-2011 WILL BE APPLICABLE. IT IS SUBMITTED THAT ACCORDING TO THE SAID INSTRUCTION, APPEAL CANNOT BE FILED BY THE DEPARTME NT IF TAX EFFECT DOES NOT EXCEED RS. 3 LACS. IT IS, THEREFORE, PLEADED THAT D EPARTMENTAL APPEAL DESERVES TO BE DISMISSED ON THE GROUND OF LOW TAX EFFECT BY APPLYING THE AFOREMENTIONED INSTRUCTION. HE SUBMITTED THAT ASSES SEE HAS FILED CROSS- OBJECTION, CHALLENGING THE VALIDITY OF REOPENING OF ASSESSMENT PROCEEDINGS, WHICH HAS BEEN UPHELD BY THE CIT(A) AND IF THE APPE AL FILED BY THE DEPARTMENT IS DISMISSED ON THE GROUND OF LOW TAX EF FECT, THEN ASSESSEES C.O. MAY BE TREATED AS INFRUCTUOUS AND ACADEMIC IN NATURE. 5. LEARNED DR COULD NOT CONTROVERT THE CONTENTION O F LEARNED COUNSEL FOR THE ASSESSEE THAT TAX EFFECT IN THE PRESENT APPEAL IS MUCH LESS THAN RS. 3 LACS. IN THIS VIEW OF THE SITUATION, AFTER HEARING BOTH T HE PARTIES, WE DISMISS THE ITA NO. 3781 & CO 334/DEL/11 DCIT VS. BHARAT MARKETICS 3 PRESENT APPEAL FIELD BY THE REVENUE ON ACCOUNT OF L OW TAX EFFECT, AS ACCORDING TO AFOREMENTIONED CBDT INSTRUCTION, IF TH E TAX EFFECT IS LESS THAN RS. 3 LACS, APPEAL COULD NOT BE FILED BY THE REVENU E. 6. SINCE, WE HAVE DISMISSED THE DEPARTMENTAL APPEAL , WE DISMISS THE CO FILED BY THE ASSESSEE BEING INFRUCTUOUS AND ACADEMI C IN NATURE. 7. IN THE RESULT, REVENUES APPEAL AS WELL AS ASSES SEES CO ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 05-10-2011. SD/- SD/- (A.N. PAHUJA ) ( I.P. BANSAL) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 05-10-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR