ITO, Ward-1(4), New Delhi V. Agache Associates, New Delhi

ITA 1805/DEL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4669 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 15-03-2018
• Court: TRIBUNAL

Judgement Text

ITA NO.- 1805/DEL/2018. AGACHE ASSOCIATES PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: A: NEW DELHI) BEFORE SHRI H.S. SIDHU JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 1805/DEL/2018 ( ASSESSMENT YEAR: 2014-15) INCOME TAX OFFICER, WARD- 1 (4), NEW DELHI. VS. AGACHE ASSOCIATES PVT. LTD., C/O S P JAIN & ASSOCIATES, 303-305, BHANOT HOUSE, YUSAF SARAI COMMERCIAL COMPLEX, NEW DELHI. PAN NO: AAACA9911H APPELLANT RESPONDENT REVENUE BY : SHRI SANJOG KAPOOR, SR. DR ASSESSEE BY : SHRI ANIL JAIN, ADV. PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-32, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 10.10.2017 FOR ASSESSMENT YEAR 2014-15. GROUNDS TAKEN IN THIS APP EAL OF REVENUE ARE AS UNDER: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE AO TO TREAT INCOME FROM WAREHOUSING AS BUSINESS INCOME IN STEAD OF INCOME FROM HOUSE PROPERTY AS HELD BY THE AO. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF BUSINESS EXPENSES OF RS. 60,88,025/- WHICH WAS CONSIDERED SEPARATELY BY THE AO RELATED TO HOUSE PROPERTY AND NOT ALLOWED AS BUSINESS EXPENSES BY THE AO. ITA NO.- 1805/DEL/2018. AGACHE ASSOCIATES PVT. LTD. PAGE 2 OF 4 3. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEA L AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. (B) AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE BR OUGHT TO OUR NOTICE, AT THE TIME OF HEARING, THAT TAX EFFECT IN THIS APPEAL IS RS. 5 0,00,000/-. BOTH SIDES, [REPRESENTATIVES OF REVENUE AND THE ASSESSEE] WERE IN AGREEMENT, AT THE TIME OF HEARING BEFORE US, THAT THE TAX EFFECT IN THE PRESE NT APPEAL IS RS. 50,00,000/-. VIDE RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 R EAD WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIM IT OF TAX EFFECT OF FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL (ITAT , FOR SHORT) HAS BEEN ENHANCED TO RS. 50,00,000/-. IN A SUBSEQUENT CLARIFICATION ISS UED BY CBDT VIDE F.NO. 279/MISC/M- 93/2018-ITJ, DATED 20/08/2019, IT HAS BEEN CLARIFIE D BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PENDING AP PEALS IN ITAT. AS THE TAX EFFECT IN THIS APPEAL DOES NOT EXCEED THE AFORESAID LIMIT OF RS. 5 0,00,000/-; THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHOR T) FOR REVENUE DID NOT PRESS THE APPEAL. THE LD. COUNSEL FOR THE ASSESSEE ALSO SUBM ITTED THAT THE APPEAL WAS NOT MAINTAINABLE IN VIEW OF THE AFORESAID CBDT CIRCULAR DATED 08.08.2019 AND 11.07.2018; AND AFORESAID CLARIFICATION DATED 20.08.2019 ISSUED BY CBDT. IN VIEW OF THE FOREGOING, THIS APPEAL IS DISMISSED BEING NOT PRESSED AND ALSO BEING NOT MAINTAINABLE HAVING REGARD TO AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESA ID CLARIFICATION DATED 20/08/2019. ITA NO.- 1805/DEL/2018. AGACHE ASSOCIATES PVT. LTD. PAGE 3 OF 4 (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 HEARING ON TH E DATE OF HEARING. NOW, THIS WRITTEN ORDER IS PRONOUNCED IN OPEN COURT ON 08/11/2019. SD/- SD/- (H.S. SIDHU) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 08/11/2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 1805/DEL/2018. AGACHE ASSOCIATES 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