M/s. Metro Tyres Ltd., New Delhi V. DCIT, New Delhi

CO 59/DEL/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6223 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 14 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2006-2007
• Appeal Filed On: 15-01-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Assessee Lawyers: MANISH SHA
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES G : DELHI BEFORE SHRI BHAVNESH SAINI, J.M. AND SHRI O.P. KANT, A.M. I.T.A.NOS.5350 & 5351/DEL./2015 ASSESSMENT YEARS 2006-2007 & 2007-2008 THE DCIT, CENTRAL CIRCLE-5, ROOM NO.361, 3 RD FLOOR, ARA CENTRE, JHANDEWALAN EXTN. NEW DELHI. VS. M/S. METRO TYRES LTD., R/O. 101, JYOTI BHAWAN, COMMERCIAL COMPLEX, DR. MUKHERJEE NAGAR, NEW DELHI 110 009. PAN AAACM3394A (APPELLANT) (RESPONDENT) CROSS OBJECTION NOS.59 & 60/DEL./2016 ARISING OUT OF I.T.A.NOS.5350 & 5351/DEL./2015 ASSESSMENT YEARS 2006-2007 & 2007-2008 M/S. METRO TYRES LTD., R/O. 101, JYOTI BHAWAN, COMMERCIAL COMPLEX, DR. MUKHERJEE NAGAR, NEW DELHI 110 009. PAN AAACM3394A VS. THE DCIT, CENTRAL CIRCLE- 5, ROOM NO.361, 3 RD FLOOR, ARA CENTRE, JHANDEWALAN EXTN. NEW DELHI. (CROSS-OBJECTOR) (RESPONDENT) FOR REVENUE : SHRI S.S. RANA, CIT-D.R. FOR CROSS OBJECTOR : SHRI GAURAV JAIN, C.A. AND MS. MANISH SHARMA, ADVOCATE DATE OF HEARING : 29.01.2019 DATE OF PRONOUNCEMENT : 29.01.2019 2 ITA.NOS.5350 & 5351/DEL./2015 & C.OS.59 & 60/DEL./2016 M/S. METRO TYRES LTD., NEW DELHI. ORDER PER BHAVNESH SAINI, J.M. BOTH THE DEPARTMENTAL APPEALS ARE DIRECTED AGAINST THE DIFFERENT ORDERS OF THE LD. CIT(A)-24, NEW DELHI, DATED 08.06.2015 FOR THE A.YS. 2006-2007 AND 2007-2008, CHALLENGING THE DELETION OF ADDITION OF RS.46,60,000/- AND RS.56,10,000/- ON ACCOUNT OF BOGUS PURCHASES RESPECTIVELY. 2. LEARNED COUNSEL FOR THE ASSESSEE DID NOT PRESS THE CROSS OBJECTIONS AND THE SAME ARE ACCORDINGLY DISMISSED AS WITHDRAWN. 3. ADMITTEDLY, THE TAX EFFECT IN THE PRESENT APPEALS IS LESS THAN RS.20 LAKHS. VIDE CIRCULAR NO.3/2018DATED 11 TH JULY, 2018 ISSUED BY CBDT, 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 TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED. THE LD. 3 ITA.NOS.5350 & 5351/DEL./2015 & C.OS.59 & 60/DEL./2016 M/S. METRO TYRES LTD., NEW DELHI. D.R. IN VIEW OF THE BOARDS CIRCULAR ABOVE DID NOT PRESS THE DEPARTMENTAL APPEALS AND SEEKS PERMISSION TO WITHDRAW THE APPEALS. THE CASE OF THE DEPARTMENT WOULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE ABOVE BOARD CIRCULAR. IN THE RESULT, THE DEPARTMENTAL APPEALS ARE NOT MAINTAINABLE AS THE APPEALS ARE FILED AGAINST THE BOARD INSTRUCTIONS REFERRED TO ABOVE AND THEREFORE, THE APPEALS OF THE DEPARTMENT ARE LIABLE TO BE DISMISSED. 4. IN THE RESULT, APPEALS OF THE DEPARTMENT ARE DISMISSED. 5. TO SUM-UP, APPEALS OF THE DEPARTMENT ARE DISMISSED AND CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P.KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 29 TH JANUARY, 2019 VBP/- 4 ITA.NOS.5350 & 5351/DEL./2015 & C.OS.59 & 60/DEL./2016 M/S. METRO TYRES LTD., NEW DELHI. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT G BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.