ITO, New Delhi V. M/s. Reliable Diesel Engineers Pvt. Ltd., New Delhi

ITA 1211/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2901 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 01-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AGAINST TH E IMPUGNED PASSED
• Keywords: Tax effect; Revenue expenditure
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO. 1211/DEL/2017 ASSESSMENT YEAR: 2010-11 INCOME TAX OFFICER, WARD 21(2), NEW DELHI VS. M/S RELIABLE DIESEL ENGINEERS PVT. LTD., C-114, 1 ST FLOOR, FATEH NAGAR, JAIL ROAD, NEW DELHI 110 018 (PAN: AAACR4048L) ( APPELLANT ) (RESPONDENT) ORDER PER H.S. SIDHU, JM: THIS APPEAL IS FILED BY THE REVENUE AGAINST TH E IMPUGNED ORDER PASSED BY THE LD. CIT(A)-11, NEW DEL HI RELATING TO ASSESSMENT YEAR 2010-11 ON THE FOLLOWIN G GROUNDS:- DEPARTMENT BY SHRI SUNDER PAL, SR. DR. ASSESSEE BY SH. SAMEER KAPOOR, CA 2 1. WHETHER THE LD. CIT(A) ERRED IN LAW AND ON MERIT WITHOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS. 69,41,959/- MADE BY AO ON ACCOUNT OF TRADING ADDITIONS. 2. WHETHER THE LD. CIT(A) ERRED IN LAW AND ON MERIT FOR ACCEPTING THE ASSESSEE CONTENTION THAT THE EXPENDITURE OF RS. 3,22,895/- ARE REVENUE IN NATURE IGNORING THE FACTS THAT THE ASSESSEE FAILED TO SUBSTANTIATED ITS CLAIMED THAT EXPENDITURE SUCH AS IMPORTED TOOLS, PURCHASED OF ELECTRICAL EQUIPMENTS ETC. ARE REVENUE EXPENDITURE. 3. THE APPLICANT CRAVES TO BE ALLOWED TO ADD ANY FRESH GROUND(S) OF APPEAL AND / OR DELETED OR AMEND ANY OF THE GROUND(S) OF APPEAL. 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE AS SESSEE HAS STATED THAT THE TAX EFFECT INVOLVED IN THIS DEPARTMENTAL APPEAL IS LESS THAN RS.50 LAKHS, HENCE , HE REQUESTED THAT THE APPEAL OF THE REVENUE MAY BE 3 DISMISSED IN VIEW OF LATEST CBDT CIRCULAR NO. 17/ 2019 DATED 08.08.2019 WHEREIN THE MONETARY LIMIT FOR FI LING THE APPEAL BEFORE THE APPELLATE TRIBUNAL BY THE DEPARTM ENT HAVE BEEN ENHANCED TO RS.50 LAKHS. 3. IT IS NOTED THAT 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 T AX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20 LAKHS. IT IS ALSO DIRECTED THAT THIS INSTRUCTION WILL APPLY RETR OSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFOR TH IN THE TRIBUNAL. PENDING APPEALS BELOW THE SPECIFIED T AX LIMIT MAY BE WITHDRAWN/NOT PRESSED BY THE DEPARTMENT. RECENTLY, THE CBDT VIDE CIRCULAR NO.17/2019 DATED 08.08.2019 AMENDED ITS EARLIER CIRCULAR NO.3/2018 ( SUPRA) WHEREBY IT HAS BEEN DIRECTED THAT MONETARY LIMIT FO R FILING THE DEPARTMENTAL APPEAL IN INCOME TAX CASES MAY BE ENHANCED FURTHER THROUGH THIS AMENDMENT IN PARA-3 O F THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE MONET ARY LIMIT FOR FILING THE APPEAL BEFORE THE APPELLATE TR IBUNAL 4 HAVE BEEN ENHANCED TO RS.50 LAKHS. SINCE CIRCULAR NO.17/2019 DATED 08.08.2019 HAVE BEEN ISSUED TO AME ND ITS EARLIER CIRCULAR NO.3/2018 DATED 11.7.2018 (SUP RA), THEREFORE, ALL THE CONDITIONS OF EARLIER CIRCULAR N O.3/2018 SHALL APPLY ACCORDINGLY. THIS VIEW IS SUPPORTED BY THE ITAT, AHEMEDABAD A BENCH DECISION DATED 14 TH AUGUST, 2019 PASSED IN THE CASE OF INCOME TAX OFFICER, WARD 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS PASSED IN ITA NO. 1398/AHD/2004 (AY 1998-99). 4. LD. CIT(DR) DID NOT CONTROVERT THE AFORESAID PROPOSITION. 5. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES A S EXPLAINED ABOVE AND IN VIEW OF THE AFORESAID CBDT CIRCULARS AS WELL AS DECISION DATED 14 TH AUGUST, 2019 OF THE ITAT, AHEMEDABAD A BENCH PASSED IN THE CASE OF INCOME TAX OFFICER, WARD 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS PASSED IN ITA NO. 1398/AHD/2004 (AY 1998-99), THE APPEAL OF THE DEPARTMENT IS DISMISSED. 5 6. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMEN T IS DISMISSED. THE DECISION IS PRONOUNCED ON 03.09.2019. SD/- SD/- (O.P. KANT) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 03.09.2019 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI 6