DCIT, New Delhi V. M/s. Mahagun Technologies Pvt. Ltd., New Delhi

ITA 2597/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7519 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 26-07-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 29-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Tax effect
• Section: 153A; 68

Judgement Text

ITA NO. 2597/DEL/2014 FOR AY 2005-06 IN THE CASE OF DCIT V/S M/S MAHAGUN TECHNOLOGIES PVT. LTD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH DELHI BENCH DELHI BENCH DELHI BENCH - -- - E EE E , NEW DELHI , NEW DELHI , NEW DELHI , NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER H.S. SIDHU, JUDICIAL MEMBER H.S. SIDHU, JUDICIAL MEMBER H.S. SIDHU, JUDICIAL MEMBER AND AND AND AND SHRI A SHRI A SHRI A SHRI ANADI NADI NADI NADI N. MISHRA, ACCOUNTANT MEMBER N. MISHRA, ACCOUNTANT MEMBER N. MISHRA, ACCOUNTANT MEMBER N. MISHRA, ACCOUNTANT MEMBER ITA NO. 259 ITA NO. 259 ITA NO. 259 ITA NO. 2597 77 7/DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 AY: 200 AY: 200 AY: 200 AY: 2005 55 5- -- -0 00 06 66 6 DCIT VS. M/S MAHAGUN TECHNOLOGIES PVT. LTD. CENTRAL CIRCLE-03, 66, VIVEK VIHAR, DELHI-95 NEW DELHI (PAN: AACCB3143L) (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) APPELLANT BY APPELLANT BY APPELLANT BY APPELLANT BY : MS. DEEPIKA MITTAL, CIT(DR) . RESPONDENT BY RESPONDENT BY RESPONDENT BY RESPONDENT BY : NONE PER PER PER PER A AA ANADI NADI NADI NADI N. MISHRA N. MISHRA N. MISHRA N. MISHRA, ,, , ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ORDER ORDER ORDER ORDER THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST ORDE R DATED 28.2.2014 OF LD. CIT(A) - IV, NEW DELHI. THE GROUNDS OF APPEAL A RE AS UNDER: 1. THAT THE CIT(A) HAS ERRED IN LAW AND ON FACTS O F THE CASE IN TREATING THE ADDITION MADE TO BE BEYOND THE SCOPE OF SECTION 153A OF THE I.T. ACT. 2. THAT THE CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE IN HOLDING THAT THE ORIGINAL ASSESSMENT CANNOT BE DISTURBED AS THER E WAS NO INCRIMINATING MATERIAL FOUND DURING SEARCH. 3. THAT THE CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE DELETING THE ADDITION OF RS. 19,18,000/- MADE BY AO ON ACCOUNT O F UNEXPLAINED INVESTMENT IN SHARE APPLICATION MONEY U/S. 68 OF T HE I.T. ACT, 1961. 4. (A) THE ORDER OF THE CIT(A) IS ERRONEOUS AND NOT TENABLE IN LAW AND ON FACTS. (B) THE APPELLANT CRAVES LEAVES TO ADD, ALTER OR AM END ANY / ALL OF THE GROUNDS OF APPEAL OR DURING THE COURSE OF HEARING O F THE APPEAL. ITA NO. 2597/DEL/2014 FOR AY 2005-06 IN THE CASE OF DCIT V/S M/S MAHAGUN TECHNOLOGIES PVT. LTD. PAGE 2 OF 3 2. DURING THE COURSE OF HEARING, THE ASSESSEE WAS N OT REPRESENTED BY ANY AUTHORIZED REPRESENTATIVE. WE HAVE HEARD THE LE ARNED CIT (DR) WHO APPEARED ON BEHALF OF REVENUE, AND WE HAVE ALSO PER USED THE MATERIALS ON RECORD. FROM THE ABOVE, WE FIND THAT THE TAX EF FECT IN REVENUES APPEAL IS LESS THAN RS.10,00,000/- . THEREFORE, THI S APPEAL IS COVERED BY INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015 OF CBDT, ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) . FOR THE SAKE OF CONVENIENCE, THE RELEVANT PORTION OF THE AFORESAID CBDT CIRCULAR IS REPRODUCED AS UNDER: .. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S 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 MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. .. .. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON ITA NO. 2597/DEL/2014 FOR AY 2005-06 IN THE CASE OF DCIT V/S M/S MAHAGUN TECHNOLOGIES PVT. LTD. PAGE 3 OF 3 THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L WAS FILED. 3. WE ARE OF THE VIEW THAT THE AFORESAID CBDT INSTR UCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015 IS APPLICABLE FOR THE PENDING APPEA LS FILED BY REVENUE, AS WELL AS FOR THE APPEALS TO BE FILED BY REVENUE HENCEFORTH. IN VIEW OF THE AFORESAID INSTRUCTION, THEREFORE, REVENUE SHOU LD HAVE WITHDRAWN / NOT PRESSED THE PRESENT APPEAL, SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE PRESCRIBED LIMIT OF RS. 10,00,000/- , SPEC IFIED IN THE AFORESAID CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015. 4. IN VIEW OF THE FOREGOING, WE CONCLUDE THAT THE A PPEAL IS INCONSISTENT WITH THE AFORESAID CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015; AND HOLD THAT THE APPEAL IS, THEREFORE, NOT MAINTAINAB LE. ACCORDINGLY, WE DISMISS THE APPEAL IN LIMINE, APPEAL BEING NOT MAINTAINABLE; WITHOUT GOING INTO T HE MERITS. 5. IN THE RESULT, THIS APPEAL, FILED BY REVENUE; ST ANDS DISMISSED. SD/- SD/- ( H.S. SIDHU ) ( ANADI N. MISHRA ) JUDICIAL MEMBER ACC OUNTANT MEMBER DATED: 2 ND AUGUST,2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. PRINCIPAL CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR