ITO, Rohtak V. Sh. Rajesh Ruhil, Haryana

ITA 2760/DEL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3419 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 16-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H K CHAUDHARY
• Keywords: Audit objection; Retrospective amendment; Tax effect
• Section: 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES I - 2 , NEW DELHI BEFORE SHRI R.K.PANDA , AM & SMT. BEENA A PILLAI, JM ITA/ CO NO. APPELLANT RESPONDENT A . Y . ASSESSEE BY 1908 /DEL/201 8 A CIT, CIRCLE 19(2) , NEW DELHI. M/S PENGUIN BUILDTECH (P) LTD. 6 TH FLOOR, GOLF VIEW CORPORATE TOWER TOWER A GOLF COURSE ROAD SECTOR 42 GURGAON 122 002 HARYANA AADCP6631N 20 1 4 - 15 NONE 3329/DEL/2017 DCIT, CIRCLE 17(1) NEW DELHI M/S MOHAN CLOTHING CO.PVT.LTD. 76, UDYOG VIHAR 1 GURGAON 122 016 AAACM1374L 2012 - 13 NONE 3453/ DEL/2017 ITO, WARD 17(2) NEW DELHI M/S MOUNT APARTMENT P.LTD. C - 55, II FLOOR PREET VIHAR NEW DELHI 92 AANFM2900Q 2012 - 13 NONE 4598/DEL/2017 ITO, WARD 47(1) NEW DELHI MANISH BANSAL 2005 - 06 NONE 5359/DEL/2017 ACIT, CIRCLE 18(1) NEW DELHI SMT. NEENA GROV ER 56/42, WEST PUNJABI BAGH NEW DELHI 26 AAQPG3559E 2013 - 14 NONE 5479/DEL/2017 DCIT, CIRCLE 16(1) NEW DELHI MANTEC CONSULTANTS P.LTD. 805, VISHAL BHAWAN 95, NEHRU PLACE NEW DELHI 19 AAACM1496R 2013 - 14 NONE 5836/DEL/2017 ACIT, CIRCLE 45(1) NEW DELHI SH. R AJIV KUMAR KATARIA T 8, RAJOURI GARDEN 2014 - 15 MS.RINKY SHARMA, A R NEW DELHI 27 1644/DEL/2018 ACIT, CIRCLE 19(2) NEW DELHI PETAL MANAGEMENTS SERVICES P.LTD. FLAT NO.7451, POCKET D7 VASANT KUNJ NEW DELHI 70 AAECP0353N 2014 - 15 NONE 1645/DEL/2018 ACIT, CI RCLE 19(2) NEW DELHI PETNET RADIO PHARMACEUTICAL SOLUTIONS P LTD. 54/D - 9, KISSHANGARH VILLAGE NEW DELHI 7 AACCD2596F 2013 - 14 NONE 1646/DEL/2018 ACIT, CIRCLE 19(2) NEW DELHI PC JEWELLERS LTD. C - 54, PREET VIHAR DELHI 92 AADCP5443Q 2011 - 12 SH. MARUDHAR AGGAR WAL, ADV. C.O. NO.99/DEL/18 (IN ITA 1646/DEL/18) PC JEWELLERS LTD. C - 54, PREET VIHAR DELHI 92 AADCP5443Q ACIT, CIRCLE 19(2) NEW DELHI 2011 - 12 SH. MARUDHAR AGGARWAL, ADV. 1641/DEL/2018 ACIT, CIRCLE 20(2) NEW DELHI QUIPPO VALUERS & AUCTIONEERS P LTD. D - 2, 5 TH FLOOR SOUTHERN PARK SAKET PLACE DELHI 17 AABCH5726J 2014 - 15 NONE 3570/DEL/2016 ACIT, CENTRAL CIRCLE 18 NEW DELHI SH. BHUPINDER SINGH KOCHAR 5, KASTURBA GANDHI MARG NEW DELHI 1 AAIPK4653K 2004 - 05 SH. LALIT MOHAN, C.A. 2913/DEL/2017 ACIT, CIRCLE 28(1) NEW DELHI SH. DEEPAK DHAR GUPTA A 145, NEW FRIENDS COLONY NEW DELHI 48 ACNPG1164G 2011 - 12 SH. S.S.KALRA, C.A. 647/DEL/2017 ACIT, CIRCLE 76(1) NEW DELHI TRADING ENGINEERS (INTERNATIONAL) LTD. UM HOUSE 201 2 - 1 3 NONE PLOT NO.35P SECTOR 44 GURGAON 122 002 AAACT3870G 3483/DEL/2016 DCIT, CIRCLE 16(2) NEW DELHI SH. RAMESH CHAND ROORKEE 2006 - 07 SH. SOMIL AGGARWAL, ADV. SH. LAKSHYA GOYAL, ADV. SH. SAURASH GOYAL, CA C.O. 283//DEL/2016 IN ITA 3483/DEL/16) SH. RAMESH CHAND S/O SH. PRAKASH AGARWAL 12/1, MAIN BAZAAR (NE W MANDIR) BHAGWANPUR ROORKEE AUAPC2368R DCIT, CIRCLE 16(2) NEW DELHI 2006 - 07 - DO - 2185 /DEL/18 & 2186 /DEL/2018 DCIT, CIRCLE 3 GURGAON PAY U PAYMENTS 4 TH FLOOR, PEARL TOWER PLOT NO.51, SECTOR 32 GURGAON 122 001 HARYANA AAJCS9091D 2013 - 14 & 2014 - 15 3304/DEL/2017 ACIT, C.C.26 NEW DELHI SH. BAL KISHAN SARAF 1290, KATRA DHULIA CHANDNI CHOWK DELHI 6 AAHPS3659Q 2005 - 06 NONE 3303/DEL/2017 ACIT, C.C.26 NEW DELHI SH. BAL KISHAN SARAF 1290, KATRA DHULIA CHANDNI CHOWK DELHI 6 AAHPS3659Q 2003 - 04 NONE 6294/ DEL/2016 ACIT, CIRCLE 28(1) DELHI SH. ASHISH ABROL PROP. M/S JANEX X - 2, OKHLA INDUSTRIAL AREA PHASE II NEW DELHI 110 020 AAEPA6509L 2013 - 14 SH.KP GARG, C.A. 6686/DEL/2016 ACIT, CENTRAL SH. SANJAY SINGHAL 2014 - 15 NONE CIRCLE 19 NEW DELHI 83, SUNDER NAGAR NEW DELHI ABMP S1773M 4738/DEL/2017 ITO(E), TRUST WARD 1(1) NEW DELHI ARYAWART WELFARE SOCIETY SECTOR C RYAN INTERNATIONAL SCHOOL POCKET 8 VASANT KUNJ NEW DELHI 110 037 AAATA4965G 2014 - 15 NONE 1548/DEL/2018 PHILIP KOSHY 2012 - 13 NONE 1542/DEL/2018 ACIT, CENTRAL CIRCLE 16 NEW DELHI RATHI BARS LIMITED A 24/7, MOHAN CO - OP. INDL. ESTATE MATHURA ROAD N.DELHI 44 AAACR0737N 2015 - 16 SH.VED JAIN, ADV. SH. PRANJAL SRIVASTAVA, ADV. 2398/DEL/2017 ITO, WARD 15(1) NEW DELHI 2 LAMBODAR FINVEST P LTD. OM TOWER, M.I.ROA D CHURCH ROAD JAIPUR AAACL2355C 2012 - 13 NONE 2904/DEL/2018 DCIT, CIRCLE 1 FARIDABAD LAKHANI FOOTWEAR P LTD. PLOT NO.130 SECTOR 24 FARIDABAD HARYANA AAACL3112H 2013 - 14 NONE 770/DEL/2017 ACIT CIRCLE 30(1) NEW DELHI SH. RAHUL MISHRA B - 23, CHIRAG ENCLAVE NE W DELHI 44 AAFPM6245A 2006 - 07 NONE C.O . 85/DEL/201 7 (IN ITA 770/DEL/17) SH. RAHUL MISHRA B - 23, CHIRAG ENCLAVE NEW DELHI 44 AAFPM6245A ACIT CIRCLE 30(1) NEW DELHI 2006 - 07 NONE 2782/DEL/2016 ACIT, CENTRAL CIRCLE 13 NEW DELHI 55 SH. ARUN KUMAR B 61, MAIN MARKET MADIPUR COLONY NEW DELHI 63 2011 - 12 NONE AHBPK6487D 2760/DEL/2016 ITO, WARD 3 AAYAKAR BHAWAN ROHTAK SH. RAJESH RUHIL VPO - ROHAD BAHADURGARH DT.JHAJJAR HARYANA ANCPR9819D 2010 - 11 NONE REVENUE BY: SH. H.K.CHAUDHARY, CIT , D.R. DATE OF HEARING : 23.08.2018 DATE OF PRONOUNCEMENT: 24/08/2018 ORDER PER BENCH: THESE APPEALS BY DEPARTMENT ARE AGAINST DIFFERENT ASSESSEE S AND CROSS OBJECTIONS /APPEALS BY S OME ASSESSEE S ARE HEARD TOGETHER. THESE APPEALS HAVE BEEN FILED AGAINST ORDERS PASSED BY RESPECTIVE LD.CIT(A), IN RELATION TO DIFFERENT ASSESSMENT YEARS. 2. L D. CIT. DR APPEARED ON BEHALF OF REVENUE. IN SOME APPEALS, ASSESSEES HASRECORDED APPEARANCE THROU GH THEIR REPRESENTATIVES , WHILE IN OTHERS, ASSESSEES REMAINED UNREPRESENTED. 3. WE HAVE HEARD THE PARTIES. IT IS FOUND THAT PURSUANT TO MANDATE OF SECTION 268A, CBDT HAS ISSUED CIRCULAR NO. 03 OF 2018, DATED 11TH JULY, 2018 WITH RETROSPECTIVE EFFECT, REVIS ING MONETARY LIMIT TO RS.20,00,000/ - FOR NOT FILING APPEALS BEFORE THE TRIBUNAL. SINCE T AX EFFECT INVOLVED IN INSTANT APPEALS IS LESS THAN RS.20,00,000/ - , THEREFORE THE Y ARE NOT MAINTAINABLE. THE L D. CIT. D.R., ALTHOUGH SUPPORTED ORDERS OF LD.AO , COULD NOT C ONTROVERT THE FACT THAT TAX EFFECT INVOLVED IN THESE APPEALS IS LESS THAN RS.20,00,000/ - . 4. ON G OING THROUGH ABOVE REFERRED CBDT CIRCULAR, IT IS CLEAR THAT IT IS APPLICABLE TO ALL PENDING APPEALS WITH RETROSPECTIVE EFFECT , AND THERE IS A CLEAR - CUT DIRECTI ON TO THE DEPARTMENT TO EITHER WITHDRAW , OR NOT PRESS SUCH APPEALS FILED BEFORE THE TRIBUNAL , WHEREIN TAX EFFECT IS LESS THAN RS.20,00,000/ - . WE ARE, THEREFORE, OF THE VIEW THAT ALL THE ABOVE APPEALS ARE NOT MAINTAINABLE , AS TAX EFFECT IN THESE APPEALS ARE ADMITTEDLY LESS THAN RS. 20,00,000/ - . 5. THE L D. CIT. DR BROUGHT TO OUR NOTICE LETTER DATED 20.08.2018 BY DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL PRINCIPAL CCITS IN RESPECT OF PARA NO. 10 OF CIRCULAR DATED 11.7.2018, ENUMERATING CERTAIN EXCEPTIONAL INSTANCES WHERE APPEALS FILED BY REVENUE SHOUL D BE CONTESTED, NOTWITHSTANDING LOW TAX EFFECT . FOR THE SAKE OF CONVENIENCE THE SAME IS REPRODUCED AS UNDER: 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDIN G THAT THE TAX EFFECT ENTITLED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARAGRAPH 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 ACCEPTED BY THE DEPARTMENT, OR (D) WHERE ADDITION RELATES TO UNDISCLOSED FOREIGN INCOME/UNDISCLOSED FOREIGN ASSETS (INCLUDING FI NANCIAL ASSETS)/UNDISCLOSED FOREIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI/ED/DRI/SFIO/DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). (F) CASES WHERE PR OSECUTION HAS BEEN FILED BY THE DEPARTMENT AND IS PENDING IN THE COURT. LD.CIT DR , HOWEVER, COULD NOT PLACE ANY MATERIAL ON RECORD TO DEMONSTRATE THAT ANY OF THE APPEALS LISTED BEFORE US STANDS COVERED BY AMENDED PARA 10, VIDE LETTER DATED 20.08.2018 BY D IRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL PRINCIPAL CCITS . 5.1. UNDER THESE CIRCUMSTANCES, WE DISMISS ALL PRESENT APPEALS FILED BY REVENUE WITH LIBERTY TO DEPARTMENT TO PREFER MISCELLANEOUS APPLICATIONS, IF IT IS FOUND THAT EITHER TAX EFFECT IS MOR E THAN RS.20,00,000/ - , OR APPEAL GETS COVERED BY REVISED PARA 10 OF CIRCULAR DATED 11.7.2018 , VIDE LETTER DATED 20.08.2018 OF DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL PRINCIPAL CCITS . ACCORDINGLY, APPEALS OF THE REVENUE STAND DISMISSED. 6 . SO FAR AS CROSS OBJECTION/CROSS APPEAL FILED BY ASSESSEE IN SOME APPEALS FILED BY REVENUE ARE CONCERNED, WE HOLD AS UNDER: IN RESPECT OF C O NO.99/DEL/2018 FILED BY ASSESSEE IN ITA NO. 1646/DEL/2018 IS CONCERNED LD. AR DID NOT PRESSED THE GROUNDS RAISED THEREI N. ACCORDINGLY CO NO.99/DEL/2018 STANDS DISMISSED AS NOT PRESSED . IN RESPECT OF C O NO. 85/DEL/2017 FILED BY ASSESSEE IN ITA NO. 770/DEL/2017 AND CO NO. 283/DEL/2016 FILED BY ASSESSEE IN ITA NO. 3483/DEL/2016 ARE IN SUPPORT OF THE ORDER PASSED BY LD. CIT ( A) THEREIN RESPECTIVELY. SINCE VIDE PARA 5 - 5.1 HEREINABOVE, APPEALS FILED BY REVENUE IS DISMISSED, CO NUMBER 85/DEL/2017 AND CO NO. 283/DEL/2016 BECOMES INFRUCTUOUS. 7. IN THE RESULT, ALL APPEALS BY REVENUE AS WELL AS C.O. BY ASSESSEE STAND S DISMISSED. T HE ORDER PRONOUNCED IN THE OPEN COURT ON 24 .08.2018. SD/ - SD/ - (R.K.PANDA ) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 24/08/2018 MANGA COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR