ACIT, Circle-8(2), Kolkata, Kolkata V. M/s Sicpa India Private Limited, New Delhi

ITA 1679/KOL/2016

• Counselvise Citation: [2019] 114 COUNSELVISE.COM (IT) 6159 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 22-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARAS KUMAR
• Keywords: Tax effect; Rule 8D
• Section: 115JB; 80IC; 254(2)

Judgement Text

ITA NO.- 1679/KOL/2016 M/S SICPA INDIA PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: G: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 1679/KOL/2016 ( ASSESSMENT YEAR: 2010-11) ACIT, CIRCLE-8(2) I, KOLKATA. VS. M/S SICPA INDIA PRIVATE LIMITED., (FORMERLY KNOWN AS SICPA INDIA LTD.) KOLKATA. PAN NO: AADCS6121L APPELLANT RESPONDENT REVENUE BY : SHRI SARAS KUMAR, SR. DR ASSESSEE BY : SHRI NIKHIL SURANA, ACA PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-3, KOLKATA-700069, [LD. CIT(A ), FOR SHORT], DATED 16.06.2016 FOR ASSESSMENT YEAR 2010-11. GROUNDS TAKEN IN THIS APPEAL OF REVENUE ARE AS UNDER: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE LD. CIT(A) WAS JUSTIFIED IN TAKING ONLY THOSE INVESTMENT FOR THE PURPOSE OF CALCULATION OF RULE 8D(III, WHICH HAVE YIELDED TAX FREE INCOME IN PLACE OF THE CALCUL ATION MADE BY AO BY TAKING AVERAGE VALUE OF INVESTMENT AS PER ACCOUNTS OF THE ASSESSEE. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE LD. CIT(A) WAS JUSTIFIED IN DELETING THE APPORTIONMENT OF HEAD OFFICE EXPENS ES TO THE UNIT ELIGIBLE FOR ITA NO.- 1679/KOL/2016 M/S SICPA INDIA PVT. LTD. PAGE 2 OF 4 DEDUCTION U/S. 80IC AS THE SAME DOES NOT HAVE ANY N EXUS WITH THE BUSINESS OF ELIGIBLE UNDERTAKING. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE LD. CIT(A) WAS JUSTIFIED IN HOLDING THE VIEW THAT ASSESSEE IN PRESENT CASE, WAS ELIGIBLE FOR DEDUCTION U/S. 80IC OF THE I.T.ACT,1961. 4. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE LD. CIT(A) WAS JUSTIFIED IN DELETING RS.46,32,475/- BEING NOTIONALLY ALLOCAT ED EXPENDITURE INCURRED TO EARN DIVIDEND INCOME IN COMPUTING BOOK PROFIT U/S 115JB OF THE I.T.ACT,1961. 5. THAT THE APPELLANT RESERVES THE RIGHT TO AMEND, ALTER OR ADD TO ANY GROUND(S) OF APPEAL BEFORE OR AT THE TIME OF HEARIN G OF APPEAL. (B) AT THE OUTSET, LEARNED AUTHORIZED REPRESENTATIVE ( LD. AR, FOR SHORT) FOR THE ASSESSEE BROUGHT TO OUR NOTICE, AT THE TIME OF HEAR ING, THAT TAX EFFECT IN THIS APPEAL IS RS. 50,00,000/-. BOTH SIDES, [REPRESENTATIVES OF R EVENUE AND THE ASSESSEE] WERE IN AGREEMENT, AT THE TIME OF HEARING BEFORE US, THAT T HE TAX EFFECT IN THE PRESENT APPEAL IS RS. 50,00,000/-. VIDE RECENT CBDT CIRCULAR NO. 17/2 019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.20 18, MINIMUM THRESHOLD LIMIT OF TAX EFFECT OF FILING OF APPEALS BY REVENUE IN INCOME TA X APPELLATE TRIBUNAL (ITAT, FOR SHORT) HAS BEEN ENHANCED TO RS. 50,00,000/-. IN A SUBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F.NO. 279/MISC/M-93/2018-ITJ, DATED 20/08 /2019, IT HAS BEEN CLARIFIED BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS A LSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. AS THE TAX EFFECT IN THIS APPEAL DOES NOT EXCEED THE AFORESAID LIMIT OF RS. 50,00,000/-; THE LEARNED SENIOR DEPARTMENTAL REPRES ENTATIVE (LD. SR DR, FOR SHORT) FOR REVENUE DID NOT PRESS THE APPEAL. THE LEARNED AUTHORIZED REPRESENTATIVES FOR THE ASSESSEE ALSO SUBMITTED THAT THE APPEAL WAS NOT MAI NTAINABLE IN VIEW OF THE AFORESAID CBDT CIRCULAR DATED 08.08.2019 AND 11.07.2018; AND AFORESAID CLARIFICATION DATED ITA NO.- 1679/KOL/2016 M/S SICPA INDIA PVT. LTD. PAGE 3 OF 4 20.08.2019 ISSUED BY CBDT. IN VIEW OF THE FOREGOING , THIS APPEAL IS DISMISSED BEING NOT PRESSED AND ALSO BEING NOT MAINTAINABLE HAVING REGA RD TO AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CBDT C IRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATION DATED 20/08/2019. (C) BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) OF INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THIS A PPEAL IF IT IS FOUND THAT APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULA RS DATED 08.08.2019 AND 11.07.2018. (D) IN THE RESULT, THIS APPEAL BY REVENUE IS DISMISSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HE ARING ON THE DATE OF HEARING. NOW, THIS WRITTEN ORDER IS PRONOUNCED IN OPEN COURT ON 15/11/2019. SD/- SD/- (AMIT SHUKLA) (ANADEE NATH MISSHR A) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 15/11/2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 1679/KOL/2016 M/S SICPA INDIA PVT. LTD. PAGE 4 OF 4 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER