DCIT, New Delhi V. M/s Acme Computers Ltd., New Delhi

ITA 1727/DEL/2011

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6427 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-03-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 08-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SHRI H.S. SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI , ACCOUNTANT MEMBER I TA NO . 1727/DEL/2011 (ASSESSMENT YEAR: 2005 - 06 ) DCIT, CENTRAL CIRCLE - 25, ROOM NO. 331, ARA CENTRE, JHANDEWALAN EXTN., NEW DELHI VS. M/S. ACME COMPUTERS LTD, 13 - B, 3 RD FLOOR, NETAJI SUBHASH MARG, DARYAGANJ, NEW DELHI PAN:AAACA6700A (APPELLANT) (RESPONDENT) C.O. NO. 53/DEL/2014 I TA NO . 1727/DEL/2011 (ASSESSMENT YEAR: 2005 - 06 ) M/S. ACME COMPUTERS LTD, 13 - B, 3 RD FLOOR, NETAJI SUBHASH MARG, DARYAGANJ, NEW DELHI PAN:AAACA6700A VS. DCIT, CENTRAL CIRCLE - 25, ROOM NO. 331, ARA CENTRE, JHANDEWALAN EXTN., NEW DELHI (APPELLANT) (RESPONDENT) REVENUE BY : SH. SK JAIN, DR ASSESSEE BY: SH. RA J IV SAXENA, ADV SUMANGLA SAXENA , ADV DATE OF HEARING 01/03/ 2017 DATE OF PRONOUNCEMENT 23 / 03 / 2017 O R D E R PER PRASHANT MAHARISHI , A . M . 1. THIS IS AN APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE AGAINST OF THE LD CIT(A) - I, NEW DELHI DATED 14.01.2011 FOR THE ASSESSMENT YEAR 2005 - 06. 2. T HE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THE ORDER OF THE LD CIT(APPEALS) IS NOT CORR ECT IN LAW AND FACTS. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 1500000/ - MADE U/S 68 OF THE IT ACT, 1961 BY THE ASSESSING OFFICER IN RESPECT OF SHARE APPLICATION MONEY INTRODU CED DURING THE YEAR. 3. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT THE ASSESSMENT ORDER PASSED UNDER SECTION 153C/ 143(3) IS BAD IN LAW AND REQUIRED TO BE QUASHED. PAGE 2 OF 3 A) BECAUSE THE SAME IS BASED ON NO INCRIMINATING MATERIAL FOUND DU RING SEARCH ON WHICH ANY UNDISCLOSED INCOME COULD BE ASSESSED. B) BECAUSE ASSESSMENT MADE U/S 153C IS BARRED BY LIMITATION AS IT WAS REQUIRED TO BE COMPLETED BY 31.12.2008 AS PER SECTION 153B OF THE INCOME TAX ACT, 1961 WHILE THE SAME WAS COMPLETED ON 24.12.2009. 4. AT THE OUTSET OF THE HEARING ITSELF, THE LD. A R BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN R S.10 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER T HE INSTRUCTION OF THE CBDT. LD D R ALSO CONFIRMED THE SAME FACTS. 5. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCE FORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT(IN RS.) 1. BEFORE APPELLATE TRIBUNAL 10,00,000 2. BEFORE HIGH COURT 20,00,000 3. BEFORE SUPREME COURT 25,00,000 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 6. WE FIND THAT THE TAX EFFECT INVOLVES IN THESE APPEAL OF THE REVENUE IS BELOW RS.10 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. 5. IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 WILL APPLY TO ALL PENDING APPEALS. THE REFORE THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.10 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. PAGE 3 OF 3 AS THE APPEAL OF THE REVENUE IS N OT MAINTAINABLE THEREFORE, THE CROSS OBJECTION OF THE ASSESSEE BECOMES INFRACTUOUS. 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT AND CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 3 / 03 / 2017 . - S D / - - S D / - ( H.S.SIDHU ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 3 / 03 / 2017 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI