INDOFIL INDUSTRIES LTD.,ANDHERI EAST, MUMBAI V. DCIT, CENTRAL CIRCLE-14, NEW DELHI

CO 145/DEL/2023

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax against Indofil Industries Ltd., challenging the order of the CIT(A) which had deleted a disallowance made by the Assessing Officer under section 40a(ia) of the Income Tax Act, 1961. The CIT(A)'s decision was based on a previous Tribunal order in favor of Indofil Industries for different assessment years. The DCIT argued that the case fell under an exception to the monetary limit for appeals as per CBDT Circular No. 05/2024. However, the Tribunal concluded that this exception did not apply to disallowances made under section 40a(ia), leading to the dismissal of the appeal and the cross objection.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 22989 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 28-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 01-12-2023
• Other Referred Cases: ITA No. 2292/Mum/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ANKIT AGARWAL
• Keywords: Tax effect; TDS
• Section: 143(3); 40a(ia)

Judgement Text

" 1 ITA No. 3005 and C.O No.145/Del/2023 DCIT Vs. Indofil Industries Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 3005/Del/2023, A.Y.2017-18) Deputy Commissioner of Income Tax, Room No. 266, ARA Centre, Jhandewalan Extension, New Delhi Vs. Indofil Industries Ltd. 4th floor, Kalpataru Square, Kondivita Road, Andheri East, Mumbai, Maharashtra PAN : AABCI4568D (Appellant) (Respondent) C.O No. 145/Del/2023, A.Y.2017-18) Indofil Industries Ltd. 4th floor, Kalpataru Square, Kondivita Road, Andheri East, Mumbai, Maharashtra PAN : AABCI4568D Vs. Deputy Commissioner of Income Tax, Room No. 266, ARA Centre, Jhandewalan Extension, New Delhi (Appellant) (Respondent) Appellant by Sh. Ankit Agarwal, CA Respondent by Shri Om Prakash, Sr.DR Date of Hearing 28/10/2024 Date of Pronouncement 30/10/2024 ORDER PER YOGESH KUMAR U.S.,JM: This present appeal as well as the Cross Objection are preferred by the Department and the Assessee respectively by 2 ITA No. 3005 and C.O No.145/Del/2023 DCIT Vs. Indofil Industries Ltd. challenging the order of the Ld. CIT(A) dated 08/08/2023 for the Assessment Year 2017-18, wherein the Ld. CIT(A) deleted the disallowance made by the A.O. u/s 40a(ia) of the Income Tax Act, 1961 (‘Act’ for short). 2. The Ld. Counsel for the Assessee submitted that the tax effect involved in the present Appeal of the Revenue is Rs.60 lacs, therefore, the present appeal isliable to be dismissed in the light of the Circular No.09 of 2024 dated 17/09/2024 read with Circular No. 05/2024 dated 15th March 2024 issued by the CBDT. 3. Per contra, the Departmental Representative submitted that the issue involved in the present Appeal comes under the exception mentioned in Para 3.1.i of the Circular No.05/2024, therefore, submitted that the present Appeal of the Revenue is maintainable. 4. We have heard both the parties and perused the material available on record. In the present case, the assessment order came to be passed u/s 143(3) r.w.s. 144B of the Act wherein the Ld. A.O. disallowed Rs. 1,60,94,294/-u/s 40a(ia) of the Act, which has been deleted by Ld. CIT(A) by relying on the in Assessee’s own case in ITA 3 ITA No. 3005 and C.O No.145/Del/2023 DCIT Vs. Indofil Industries Ltd. No. 2292/Mum/2022 dated 30/01/2023 for Assessment Year 2014-15 to 2016-17. The said order of the Tribunal is under challenge before us. Admittedly, the tax effect in the present appeal filed by the Revenue is Rs. 52,21,794/- which is lesser than the monetary limit prescribed in the Circular No.09 of 2024 dated 17/09/2024 issued in continuation with Circular No. 5/2024 dated 15/03/2024. 5. It is the submission of the Department's Representative that the Appeal is maintainable as the issue involved in the present Appeal lies under the exception mentioned in para 3.1.i of the Circular No.05/2024. For the sake of adjudicating the said contention the said exception is reproduced as under: - “i. Where dispute relates to the determination of the nature of transaction such that the liability to deduct TDS/TCS thereon or otherwise is under question, or 6. In our opinion, the above said exception 3.1.i. of the Circular No. 5/2024 is applicable to the cases which are arising out of order passed u/s 201(1)/201(1A) of the Act however, the said exception is not applicable to the cases which are arising out of the disallowance made by the A.O. u/s 40a(ia) of the Act. Accordingly, we dismiss 4 ITA No. 3005 and C.O No.145/Del/2023 DCIT Vs. Indofil Industries Ltd. the Appeal of the Revenue in ITA No. 3005/Del/2023 as the Tax Effect involved in the said Appeal is lesser than the monetary limit prescribed in the Circular No. 05/2024, however, we reserve liberty to the Revenue to file appropriate application if the issue involved in the Appeal lies under any of the exceptions mentioned in the Circular No. 05/2024 issued by the CBDT. 7. Since we have dismissed the Appeal filed by the Revenue the Cross Objection No. 145/Del/2023 is also dismissed as having become in-fructuous. Order pronounced in open Court on 30th October, 2024 Sd/- Sd/- (S. RIFAUR RAHMAN) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30/10/2024 R.N, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI 5 ITA No. 3005 and C.O No.145/Del/2023 DCIT Vs. Indofil Industries Ltd. "