M/s. Kanodia Technoplast Pvt. Ltd., New Delhi V. DCIT, New Delhi

CO 55/DEL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6992 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 6 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 21-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 15-01-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SATISH KUMAR GUPTA
• Assessee Lawyers: TANI MALIK; MADHAV KAPUR ADVOCAT
• Keywords: Tax effect
• Section: 268A; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES D: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER ITA.NO.5458/DEL./2015 ASSESSMENT YEAR 2006-2007 THE DCIT, CIRCLE-14(1), NEW DELHI. VS., M/S. KANODIA TECHNOPLAST PVT. LTD., A-54, WAZIPUR INDUSTRIAL AREA, NEW DELHI PIN 110 052 PAN AAACK3668F (APPELLANT) (RESPONDENT) C.O.NO.55/DEL./2016 ARISING OUT OF ITA.NO.5458/DEL./2015 - ASSESSMENT YEAR 2006-2007 M/S. KANODIA TECHNOPLAST PVT. LTD., A-54, WAZIPUR INDUSTRIAL AREA, NEW DELHI PIN 110 052 PAN AAACK3668F VS., THE DCIT, CIRCLE-14(1), NEW DELHI. ( CROSS OBJECTOR ) (RESPONDENT) FOR REVENUE : SHRI SATISH KUMAR GUPTA, SR. D.R. FOR ASSESSEE : MS. TANI MALIK, AND SHRI MADHAV KAPUR, ADVOCATES. DATE OF HEARING : 21 . 1 0.2019 DATE OF PRONOUNCEMENT : 21 . 1 0.2019 2 ITA.NO.5458/DEL./2015 & C.O. NO.55/DEL./2016 M/S. KANODIA TECHNOPLAST PVT., LTD., NEW DELHI. ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE AND CROSS OBJECTION BY ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-V, NEW DELHI, DATED 05.06.2015, FOR THE A.Y. 2006-2007. 2. IN THE DEPARTMENTAL APPEAL, THE REVENUE CHALLENGED THE DELETION OF ADDITION OF RS.1,30,68,000/- UNDER SECTION 68 OF THE I.T. ACT, 1961. ADMITTEDLY, THE TAX EFFECT IN THE DEPARTMENTAL APPEAL IS LESS THAN RS.50 LAKHS. VIDE CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 ISSUED BY CBDT UNDER SECTION 268A OF THE I.T. ACT, IT HAS BEEN DIRECTED THAT THE DEPARTMENT SHALL NOT FILE APPEAL BEFORE THE TRIBUNAL IN CASE WHERE THE 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 THE TRIBUNAL. PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR NO.17/2019 DATED 08.08.2019 AMENDED THE EARLIER CIRCULAR 3 ITA.NO.5458/DEL./2015 & C.O. NO.55/DEL./2016 M/S. KANODIA TECHNOPLAST PVT., LTD., NEW DELHI. NO.3/2018 (SUPRA) WHEREBY IT HAS BEEN DIRECTED THAT MONETARY LIMIT FOR FILING THE DEPARTMENTAL APPEAL IN INCOME TAX CASES MAY BE ENHANCED FURTHER THROUGH THIS AMENDMENT IN PARA-3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE APPELLATE TRIBUNAL HAVE BEEN ENHANCED TO RS.50 LAKHS. SINCE CIRCULAR NO.17/2019 DATED 08.08.2019 HAVE BEEN ISSUED TO AMEND ITS EARLIER CIRCULAR NO.3/2018 (SUPRA), THEREFORE, ALL THE CONDITIONS OF EARLIER CIRCULAR NO.3/2018 SHALL APPLY ACCORDINGLY. 3. THE LD. D.R. IN VIEW OF THE ABOVE BOARDS CIRCULARS DID NOT PRESS THE DEPARTMENTAL APPEAL. THE CASE OF THE DEPARTMENT WOULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE ABOVE BOARD CIRCULARS. IN THE RESULT, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AS THE APPEAL FILED AGAINST THE BOARD INSTRUCTIONS REFERRED TO ABOVE AND THEREFORE, THE APPEAL OF THE DEPARTMENT IS LIABLE TO BE DISMISSED. 4 ITA.NO.5458/DEL./2015 & C.O. NO.55/DEL./2016 M/S. KANODIA TECHNOPLAST PVT., LTD., NEW DELHI. 4. IN THE RESULT, APPEAL OF THE DEPARTMENT DISMISSED. 5. LEARNED COUNSEL FOR THE ASSESSEE SEEKS PERMISSION TO WITHDRAW THE CROSS OBJECTION AND THE SAME IS DISMISSED AS WITHDRAWN. 6. IN THE RESULT, CROSS OBJECTION OF THE ASSESSEE DISMISSED. 7. TO SUM-UP, APPEAL OF THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (B.R.R. KUMAR) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 21 ST OCTOBER, 2019 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT D BENCH 6. GUARD FILE // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.