ACIT, New Delhi V. Naresh Kumar Juneja, New Delhi

ITA 2050/DEL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6758 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 2
• Next Hearing Date: 18-07-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 08-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Deemed dividend; Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-2 NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER ITA NO. 2050/DEL/2015 ASSTT. YR: 2006-07 ACIT, CIRCLE 54(1), VS. NARESH KUMAR JUNEJA, NEW DELHI. 11, NATIONAL PARK, LAJPAT NAGAR-IV, NEW DELHI. PAN: AAHPJ 4282 A ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI N.K. BANSAL SR. DR RESPONDENT BY : NONE DATE OF HEARING : 19/07/2016. DATE OF ORDER : 25/07/2016. O R D E R THIS IS REVENUES APPEAL AGAINST THE ORDER DATED 07.01.2015, PASSED BY THE LD. CIT(A)-18, NEW DELHI, RELATING TO A.Y. 2006-07. 2. NONE PUT IN APPEARANCE ON BEHALF OF THE ASSESSEE . WE PROCEED TO DISPOSE OF THE ASSESSEES APPEAL, EX PARTE, QUA THE ASSESSEE AND IN THAT PROCESS I HAVE HEARD LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. 3. GROUND OF APPEAL, RAISED BY THE REVENUE IN ITS A PPEAL, ARE AS UNDER: 1. 'WHETHER THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS.4,85,979/- IN THE HANDS OF ASSESSEE AS DEEMED DIVIDEND U/S 2(22)(E) OF THE INCOME TAX ACT,1961, WHEREAS THE ASSESSEE HOLDS MORE THAN 20% SHARES IN BOTH SM H & .IG AND NJG HAS ACCEPTED UNSECURED LOAN /ADVANCE FROM SMH'. 2 2, 'WHETHER THE LD.CIT (A) HAS ERRED IN ALLOWING TH E CLAIM OF EXPENSES AMOUNTING TO RS.L,99,000/- TOWARD S COST OF IMPROVEMENT FROM SALE CONSIDERATION WHILE COMPUTING SHORT TERM CAPITAL GAIN AND TREATING THIS EXPENSE CAPITAL IN NATURE.' 3. 'WHETHER THE LD.CIT (A) HAS ERRED IN DELETING TH E ADDITION OF RS.14,21 ,284/- AS LONG TERM CAPITAL GA IN AND TREATING THE LAND IN QUESTION AGRICULTURAL LAND WHE REAS THE LAND WAS SITUATED AT A DISTANCE OF LESS THAN 8K M FROM THE DISTRICT MAIN CITY GURGAON AND NOT COVERED IN T HE DEFINITION OFSECTION2(14)(III) OF I.T.ACT, I 961.' 4. 'THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AME ND ANY/ALL THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. ' 4. LD. DR AT THE OUTSET SUBMITTED THAT, PRIMA FACIE , THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN RS. 10 LAKHS. THEREFORE, IN TERMS OF CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015, STI PULATING THAT NO DEPARTMENTAL APPEAL, INVOLVING TAX EFFECT BELOW RS .10 LAKHS, SHALL BE FILED BEFORE THE ITAT AND FURTHER THAT SUCH INSTRUCTION W OULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE S PECIFIED TAX LIMIT OF RS.10 LAKH MAY BE WITHDRAWN/NOT PRESSED, THE DEPART MENT MAY BE ALLOWED TO WITHDRAW THE APPEAL, PROVIDED THAT IT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEAL AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR I SSUE ARISES BEFORE THE ITAT, WHERE THE APPEAL IS ABOVE THE TAX LIMIT, AS PRESCRI BED IN THE BOARDS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 3 5. AFTER CONSIDERING THE SUBMISSIONS OF LD. DR, THE DEPARTMENTAL APPEAL IS TREATED AS WITHDRAWN IN TERMS OF BOARDS CIRCULA R, REFERRED TO ABOVE. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED HAV ING BEEN WITHDRAWN. ORDER PRONOUNCEMENT IN OPEN COURT ON 25/07/2016. SD/- (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 25/07/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.