DCIT, CC-II, Chandigarh V. M/s Bharatnet Technology Ltd., Delhi

ITA 1190/CHANDI/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7482 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 01-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Question of law; Tax effect
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, A CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1190/CHD/2017 ASSESSMENT YEAR: 2010-11 THE DCIT, VS. M/S BHARATNET TECHNOLOGY LTD., CENTRAL CIRCLE-II, F-334, SARITA VIHAR, CHANDIGARH DELHI PAN NO. AABCB6785GH (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.CHANDERKANTA, SR.DR RESPONDENT BY : SH. ASHWANI KUMAR, CA DATE OF HEARING : 16.07.2018 DATE OF PRONOUNCEMENT : 16.07.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 18.05.2017 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, GURGAON [HEREINAFTER REFERRED TO AS CIT(A)]. 2. AT THE OUTSET, THE LD. AR HAS STATED THAT TAX EF FECT INVOLVED IN THE PRESENT CASE IS LESS THAN RS. 20 LACS. THE LD. DR, HOWEVER, HAS SUBMITTED THAT IN THIS CASE, A QUESTION OF LAW IS INVOLVED AS TO W HETHER IN THE ASSESSMENT PROCEEDINGS CARRIED OUT U/S 153A OF THE ACT IN THE ABSENCE OF INCRIMINATING MATERIAL, ADDITION CAN BE MADE OVER AND ABOVE THE I NCOME DECLARED BY THE ASSESSEE. SHE, HOWEVER, SUBMITTED THAT SINCE THE E XCLUSION CLAUSE IS ATTRACTED IN THIS CASE, HENCE, CBDT CIRCULAR NO. 3/2018 IS N OT APPLICABLE. 3 ITA NO. 1190-C-17- M/S BHARATYNET TECHONOLOGY, DELHI 4. A PERUSAL OF THE ABOVE EXCLUSIONS REVEL THAT THE RE IS NO EXCLUSION OF THE APPEALS INVOLVING ANY LAW POINT. HENCE, THE ISSUE R AISED IN THE PRESENT APPEAL DOES NOT COME WITHIN THE PURVIEW OF THE EXCLUSION C LAUSE, AS NOTED ABOVE. ADMITTEDLY, THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS. 20 LACS. THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF PRINCIPAL CIT OF INCOME TAX VS. SURINDER KUMAR SINGHAL ITA NO 406-2 016 (O&M) VIDE ORDER DATED 30.1.2017 WHILE FURTHER RELYING UPON THE DECI SION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. DHANALEKSHMI BANK LTD. (2015) 373 ITR 526 (SC), HAS DISMISSED THE APPEAL OF THE REVEN UE WITHOUT GOING INTO THE MERITS DUE TO LOW TAX EFFECT LEAVING THE QUESTION O F LAW OPEN. IN VIEW OF THE CBDT CIRCULAR NO. 03/2018 (SUPRA) AND IN THE LIGHT OF THE ABOVE REFERRED TO DECISION OF THE HON'BLE JURISDICTIONAL PUNJAB & HA RYANA HIGH COURT (SUPRA), THE PRESENT APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. IT IS, HOWEVER, CLARIFIED THAT THE DISMISSAL OF THE ABOVE APPEAL SHALL NOT BE TAKEN TO BE AFFIRMATION OF THE ORDER OF THE CIT( A) ON MERITS. THE LEGAL ISSUE RAISED BY THE REVENUE IS BEING LEFT OPEN TO B E ADJUDICATED IN AN APPROPRIATE CASE. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 16.07.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR