DCIT, New Delhi V. M/s. Minda Investment Ltd., Delhi

ITA 2593/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8796 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 28-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Onus to prove
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES E , NEW DELHI BEFORE SH. BHAVNESH SAINI , JUDICIAL MEMBER DR. B. R. R. KUMAR , ACCOUNTANT MEMBER ITA NO. 2593 /DEL/2017 : ASSTT. YEAR : 2007 - 08 D CIT , CIRCLE - 16 (2 ), NEW DELHI VS M/S MINDA INVESTMENT LTD., B - 64/1, WAZIRPUR INDUSTRIAL AREA, DELHI - 110052 (APPELLANT) (RESPONDENT) PAN NO. AA ACL1433F ASSESSEE BY : NONE REVENUE BY : MS. RINKU SINGH , SR. DR DATE OF HEAR ING: 10 . 07 .201 9 DATE OF PRONOUNCEMENT: 10 .07 .201 9 ORDER PER DR. B. R. R. KUMAR , A CCOUNTANT M EMBER : THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) - 6 , DELHI DATED 03.02.2017 . 2. THE REVENUE H AS R AISED THE FOLLOWING EFFECTIVE GROUNDS : 1. WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) IS LEGALLY JUSTIFIED IN DELETING ADDITION OF RS.50,00,000/ - U/S 68 OF THE INCOME TAX ACT, 1961 (THE ACT) EVEN WHEN THE ASSESSEE HAD FAILED TO DISCH ARGE ITS INITIAL ONUS TO PROVE CREDITWORTHINESS OF LENDERS U/S 68 OF THE ACT BEFORE THE ASSESSING OFFICER(THE AO) ? 3. ACCORDING TO CIRCULAR NO. 03/2018 DATED 11/07/2018, THE CBDT IN SUPERSESSION OF EARLIER INSTRUCTIONS HAS DIRECTED THAT DEPARTMENT S APP EALS BEFORE ITAT SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 20 LACS. THE TAX WILL NOT INCLUDE ANY INTEREST THEREON. IT IS FURTHER CLARIFIED THAT IF IN THE CASE OF AN ASSESSEE, DISPUTED ITA NO . 2593 /DEL /201 7 MINDA INVESTMENT LTD. 2 ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SO SPECIFIED. 4. ADMITTEDLY, IN THE DEPARTMENTAL APPEAL, THE TAX EFFECT IS LESS TH AN RS. 20 LACS, THEREFORE, DEPARTMENTAL APPEAL IS NOT MAINTAINABLE. THE LD. DR COULD NOT BRING TO OUR NOTICE ANY EXCEPTIONS MENTIONED IN THE SAID CIRCULAR. 5. IN THE RESULT , THE APPEAL OF THE REVENUE IS DISMISSED. ( ORDER PRONOUNCED IN THE OPEN COURT ON 10 .07.2019) SD/ - SD/ - ( BHAVNESH SAINI ) ( DR. B. R. R. KUMAR ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10 /07 /2019 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT R EGISTRAR