Income Tax Officer, Moradabad V. Shri Om Prakash Agarwal, Moradabad

ITA 2295/DEL/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5256 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 28-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHUBHAM SOBTI
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G , NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL M EMBER AND SH RI O.P. KANT , ACCOUNTANT MEMBER ITA NO .2295 /DE L/ 2016 ASSESSMENT YEAR : 2010 - 11 INCOME TAX OFFICER, WARD - 1(1), MORADABAD VS. SHRI OM PRAKASH AGARWAL, 226, LAJPAT NAGAR, MORADABAD PAN : AGDPA6494P (APPELLANT) (RESPONDENT) APPELLANT BY SHRI N.K. BANSAL, SR.DR RESPONDENT BY SHRI SHUBHAM SOBTI, ADV. ORDER PER O.P. KANT, A .M. : THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER DATED 09.02.2016 PASSED BY CIT(A) , MORADABAD , PERTAINING TO THE ASSESSMENT YEAR 2010 - 11. IT HAS BEEN IDENTIFIED BY THE REGISTRY THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN RS.20,00,000/ - . 2. DURING THE COURSE OF HEARING, THE LD. SR. DR SUBMITTED THAT NO DOUBT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.20 LAKHS, THUS, BOUND BY THE DEPARTMENTAL IN STRUCTION, THE APPEAL HAS TO BE WITHDRAWN. HOWEVER, ATTENTION WAS INVITED TO PARA 10 OF THE CIRCULAR NO. 3/2018, DATED 11 TH JULY, 2018, WHICH HAS BEEN MODIFIED BY CIRCULAR DATED 20 TH AUGUST, 2018 AND IN TERMS OF THE DATE OF HEARING 23.01.2019 DATE OF PRONOUNCEMENT 23.01.2019 2 ITA NO. 2295/DEL./2016 SAID MODIFICATION THE DEPARTMENTAL REPRE SENTATIVES MADE A PRAYER THAT PERMISSION TO PRAY FOR RECALL OF THE ORDER MAY BE GRANTED IN CASE ANY OF THE CONDITIONS IN THE REPORTS MADE AVAILABLE BY THE A.O. SUBSEQUENTLY, SHOW THAT THE ISSUES WERE REQUIRED TO BE CONTESTED. THE MODIFIED PARA IS EXTRACTED HEREUNDER: 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARD'S ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCE PTED BY THE DEPARTMENT, OR (D) WHERE ADDITION RELATES TO UNDISCLOSED FOREIGN INCOME/UNDISCLOSED FOREIGN ASSETS (INCLUDING FINANCIAL ASSETS)/ UNDISCLOSED FOREIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FROM EXTERNAL SOURCES IN T HE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI/ ED/ DRI/ SFIO/ DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). (F) CASES WHERE PROSECUTION HAS BEEN FILED BY THE DEPARTMENT AND IS PENDING IN THE COURT. 3. GOING BY THE PRESCRIPTION OF CIRCULAR NO. 3 /2018, DATED 11 TH JULY, 2018, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE EITH ER NOT FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL OR WITHDRAWN THE SAME AS THE TAX EFFECT IN THE APPEAL IS ADMITTEDLY 3 ITA NO. 2295/DEL./2016 LESS THAN THE PRESCRIBED LIMIT, I.E., RS. 20,00,000/ - FOR NOT FILING THE APPEALS. ACCORDINGLY, WE DISMISS THE APPEAL FILED BY THE REVENUE WITHOUT GOING INTO MERITS OF THE CASE. HOWEVER, IT IS MADE CLEAR THAT THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION, IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMIT OF RS.20,00,000/ - OR ANY OF THE CONDITIONS ETC., AS AVAILABLE IN THE AMENDMENT CARRIED OUT IN PARA 10 OF CIRCULAR NO. 3/2018, DATED 20.08.2018, IS MADE OUT. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER IS PRONOUN CED IN THE OPEN COURT ON 2 3 R D JANUARY , 201 9 . S D / - S D / - [ BHAVNESH SAINI ] [O.P. KANT] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 3 R D JANUARY, 2019 . RK / - [D.T.D.S] COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI