M/s. Ultra Lighting Ltd., New Delhi V. ACIT, New Delhi

CO 54/DEL/2014

• Counselvise Citation: [2016] 112 COUNSELVISE.COM (IT) 4111 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 13 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 31-05-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 17-02-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S R SENAPATI
• Assessee Lawyers: ATUL MATHUR
• Keywords: Additional evidence; Tax effect
• Section: 64

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO. 5168/DEL/2012 ASSESSMENT YEAR: 2008-09 ACIT, CIRCLE 18(1), VS. M/S ULTRA LIGHTING LT D. ROOM NO. 211-A, A-83, INDUSTRIAL AREA, CR BUILDING, GT KARNAL ROAD NEW DELHI AZAD PUR, DELHI 33 (PAN:AAACM1049C) (APPELLANT) (RESPONDENT) AND C.O. NO. 54/DEL/2014 ASSESSMENT YEAR: 2008-09 M/S ULTRA LIGHTING LTD. VS. ACIT, CIRCLE 18(1) , A-62, MAYAPURI, NEW DELHI INDUSTRIAL AREA, NEW DELHI 64 (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. S.R. SENAPATI, SR. DR ASSESSEE BY : SH. MANPREET SINGH KAPOO R, CA & SH. ATUL MATHUR DATE OF HEARING : 31-05-2016 DATE OF ORDER : 01-06-2016 ORDER PER H.S. SIDHU, J.M. THE APPEAL HAS BEEN FILED BY THE DEPARTMENT AND TH E CROSS OBJECTION FILED BY THE ASSESSEE AGAINST THE ORDER OF TH E LD. CIT(A)- ITA NO.5168/DEL/2012 & CO NO. 54/DEL/2014 2 XXI, NEW DELHI DATED 31.7.2012 RELATING TO ASSESSME NT YEAR 2008- 08. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN I TS APPEAL NO. 5168/DEL/2012:- 1. LD. CIT(A) ERRED IN LAW AND ON THE FACTS OF THE C ASE IN DELETING THE ADDITION OF RS. 84,58,113/- MADE BY THE AO TO THE BOOK PROFIT OF THE ASSESSEE ON ACCOUNT OF PROVISION OF WARRANTY. 2. LD. CIT(A) ERRED IN LAW AND ON THE FACTS OF THE CAS E IN IGNORING FACT THAT THE ASSESSEE DID NOT SUBMIT ANY JUSTIFICATION IN RESPONSE TO AOS SPECIFIC QUERY, VIDE LETTER DATED 3.12.2010, AS TO WHY PROVISION FOR WARRANTY SHOU LD NOT BE ADDED TO BOOK PROFIT. 3. LD. CIT(A) ERRED IN LAW AND ON THE FACTS OF THE C ASE IS ACCEPTING ADDITIONAL EVIDENCE IN VIOLATION OF RULE 46 A OF THE INCOME TAX RULES. 4. THE APPELLANT CRAVES THE LEAVE TO ADD, AMEND, ALTE R OR WITHDRAW ANY GROUND(S) OF APPEAL DURING OR BEFORE THE HEARING OF APPEAL. 3. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS I N ITS CROSS OBJECTION:- ITA NO.5168/DEL/2012 & CO NO. 54/DEL/2014 3 1. THAT THE ASSESSEE IS A PUBLIC LIMITED COMPANY FIL ING ITS RETURN OF INCOME REGULARLY. 2. THAT THE ASSESSEE'S ACCOUNTS WERE DULY AUDITED B Y AN INDEPENDENT CHARTERED ACCOUNTANT FIRM. 3. THAT THE ASSESSEE FILED RETURN OF INCOME FOR THE A.Y.2007-08 AND DECLARED A TOTAL INCOME OF RS.54,61,655/-. 4. THAT WHOLE OF THE BOOKS OF ACCOUNTS AND ALL SUPPORTING DOCUMENTS WERE PRODUCED DURING THE COURSE OF ASSESSMENT PROCEEDINGS, WHICH WERE DULY VERIFIED BY THE LD. ASSESSING OFFICER. 5. THAT WHILE FINALIZING THE ASSESSMENT, THE LD. ASSESSING OFFICER MADE AN ADDITION OF RS. 90,22,386/ - ON VARIOUS GROUNDS. 6. THAT THE HON'BLE CIT APPEAL RESTRICTED THE ADDITI ON MADE BY ASSESSING OFFICER FROM RS. 90,22,386/- TO RS . 5,64,273 LAC AFTER DULY SATISFYING HIMSELF ON BOOKS OF ACCOUNTS AND OTHER RECORDS WHICH WERE PRODUCED BEFO RE HIM. ITA NO.5168/DEL/2012 & CO NO. 54/DEL/2014 4 7. THAT BEING AGGRIEVED BY THE ORDER OF THE HON'BLE CIT APPEAL, THE APPELLANT HAS COME BEFORE YOUR HONOR AN D EXPECTS FULL RELIEF THEREIN. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. FROM THE ABOVE, WE FIND THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN RS.10,00,000/-, THEREF ORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW O F THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SA KE OF CONVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AF ORESAID 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 L IMITS GIVEN HEREUNDER: S NO APPEALS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2 BEFORE HIGH COURT 20,00,000/ - 3 BEFORE SUPREME COURT 25,00,000/ - ITA NO.5168/DEL/2012 & CO NO. 54/DEL/2014 5 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETA RY LIMITS PRESCRIBED 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 C OURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTION OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THO SE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHD RAWN/ NOT PRESSED THE PRESENT APPEAL, IN VIEW OF THE AFORESAI D INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THA N THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS I NSTRUCTIONS. 6. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SH OULD HAVE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRI BUNAL. WE ARE ALSO OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPL ICABLE FOR THE ITA NO.5168/DEL/2012 & CO NO. 54/DEL/2014 6 PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH I N TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 7. DURING THE HEARING, LD. COUNSEL OF THE ASSESSEE DID NOT PRESS THE CROSS OBJECTION, HENCE, THE SAME IS DISMISSED AS NOT PRESSED. 8. IN THE RESULT, APPEAL FILED BY THE REVENUE AS WE LL AS CROSS OBJECTION FILED BY THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/06/2016. SD/- SD/- (O.P. KANT) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 01/06/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR