DCIT, CIRCLE - 10(1), NEW DELHI, DELHI V. INTERGLOBE ENTERPRISES PRIVATE LIMITED, DELHI

ITA 2699/DEL/2024

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A) which deleted an addition/adjustment of Rs. 1,51,10,979. The Revenue relied on a Supreme Court judgment (CIT Vs Gujarat Electricity Board) to contest the CIT(A)'s decision. However, the appeal was dismissed at the preliminary stage due to the monetary threshold for litigation set by the CBDT Circular No.09 of 2024, which aims to reduce litigation by limiting appeals based on the tax effect involved. The Revenue acknowledged the applicability of this Circular during the hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471638 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-11-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 26-05-2024
• Other Referred Cases: CIT Vs Gujarat Electricity Board
• Laws Referred To: CIT Vs Gujarat Electricity Board 260 ITR 84, Section 143(1)(1D) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SOMYA JAIN
• Keywords: Tax effect
• Section: 143(2)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No [Assessment Year : ACIT, Circle-10(1), New Delhi. APPELLANT Appellant by Respondent by Date of Hearing Date of Pronouncement PER PRADIP KUMAR KEDIA The captioned appeal has been filed at the instance of the Revenue against the order of the Mumbai [“Ld. CIT(A)”], dated 1 year 2020-21. 2. The grounds of appeal raised by the Revenue read as under: 1. “Whether on the facts and in the circumstances of the case and in law, the Ld. Addl/JCIT( addition/adjustment aggregating to Rs. 1,51,10,979/ relying on the judgment of Hon'ble Supreme Court in the case of CIT Vs Gujarat Electricity Board 260 ITR 84 ignoring the fact that provision to section 143(1)(1D) has changed allowing processing of such Returns w.e.f assessment year commencing on or after 01.04.2017? 2. Whether on the facts and in the circumstances of the case and in law, the Ld Addl/JCIT(A) has erred in deleting the IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.2699/Del/2024 Assessment Year : 2020-21] vs M/s. Interglobe Enterprises Pvt.Ltd., 3rd Floor, Dr.Gopal Das Bhawan 28, Barakhamba Road, New Delhi-110001. PAN-AAACG3351K RESPONDENT Shri Om Parkash, Sr.DR Respondent by Ms. Somya Jain, Adv. Date of Hearing 13.11.2024 Pronouncement 13.11.2024 ORDER PRADIP KUMAR KEDIA, AM : The captioned appeal has been filed at the instance of the Revenue against the order of the Ld. CIT(A)/ADDL/JCIT(A) CIT(A)”], dated 19.03.2024 concerning assessment The grounds of appeal raised by the Revenue read as under: “Whether on the facts and in the circumstances of the case and in law, the Ld. Addl/JCIT(A) has erred in deleting the addition/adjustment aggregating to Rs. 1,51,10,979/ relying on the judgment of Hon'ble Supreme Court in the case of CIT Vs Gujarat Electricity Board 260 ITR 84 ignoring the fact that provision to section 143(1)(1D) has allowing processing of such Returns w.e.f assessment year commencing on or after 01.04.2017? Whether on the facts and in the circumstances of the case and in law, the Ld Addl/JCIT(A) has erred in deleting the SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & Interglobe Enterprises Floor, Dr.Gopal Das Bhawan 28, Barakhamba Road, The captioned appeal has been filed at the instance of the /ADDL/JCIT(A)-9, concerning assessment The grounds of appeal raised by the Revenue read as under:- “Whether on the facts and in the circumstances of the case A) has erred in deleting the addition/adjustment aggregating to Rs. 1,51,10,979/- relying on the judgment of Hon'ble Supreme Court in the case of CIT Vs Gujarat Electricity Board 260 ITR 84 ignoring the fact that provision to section 143(1)(1D) has allowing processing of such Returns w.e.f assessment year commencing on or after 01.04.2017? Whether on the facts and in the circumstances of the case and in law, the Ld Addl/JCIT(A) has erred in deleting the addition/adjustment aggregating to Rs. 1,5 without dealing with the merit of additions/adjustments and holding that the order u/s 143(1)(a) cannot be issued after issuance of notice u/s 143(2) of the Act.” 3. At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.09 of 2024 the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.60 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.60 lakhs and therefore, appeal of the Revenue is required to be dismissed in limine. 4. The Ld.Sr.DR for the Revenue fairly admitted the applicability of the CBDT Circular No.09 of 2024 dated 17.09.2024. Accordingly, appeal of the Revenue is dismissed as not m it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any manner. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Co Sd/- (SUDHIR PAREEK) JUDICIAL MEMBER * Amit Kumar * ITA No. addition/adjustment aggregating to Rs. 1,5 without dealing with the merit of additions/adjustments and holding that the order u/s 143(1)(a) cannot be issued after issuance of notice u/s 143(2) of the Act.” At the time of hearing, it was submitted by the Ld.AR for the appeal filed by the Revenue is hit by recently CBDT Circular No.09 of 2024 dated 17.09.2024 the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.60 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.60 akhs and therefore, appeal of the Revenue is required to be DR for the Revenue fairly admitted the applicability of the CBDT Circular No.09 of 2024 dated 17.09.2024. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 13th November, 2024. (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER ITA No.2699/Del/2024 Page | 2 addition/adjustment aggregating to Rs. 1,51,10,979/- without dealing with the merit of additions/adjustments and holding that the order u/s 143(1)(a) cannot be issued At the time of hearing, it was submitted by the Ld.AR for the appeal filed by the Revenue is hit by recently 17.09.2024 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.60 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.60 akhs and therefore, appeal of the Revenue is required to be DR for the Revenue fairly admitted the applicability of the CBDT Circular No.09 of 2024 dated 17.09.2024. Accordingly, aintainable. However, it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any In the result, the appeal of the Revenue is dismissed. November, 2024. Sd/- PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ITA No. ASSISTANT REGISTRAR ITAT, NEW DELHI ITA No.2699/Del/2024 Page | 3 ASSISTANT REGISTRAR ITAT, NEW DELHI "