ITO, New Delhi V. M/s Homeway Marketing P. Ltd., New Delhi

ITA 2875/DEL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53425 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 07-01-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 02-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALIL MISHRA; B R R KUMAR
• Keywords: Unexplained cash credit; Tax effect
• Section: 260A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SHRI G.D. AGRAWAL, HONBLE VICE PRESIDENT & SHRI C.L. SETHI, JUDICIAL MEMBER ITA NO. 2875/DEL/2011 ASSESSMENT YEAR: 2005-06 ITO, VS. HOMEWAY MARKETING P. LTD., WARD 12(4), ROOM NO. 331, 315, DHAKA CHAMBERS, C.R. BUILDING, 2068/38, NAIWALA, KAROL BAGH, NEW DELHI. NEW DELHI. AABCH0130Q (APPELLANT) (RESPONDENT) & ITA NO. 2291/DEL/2011 ASSESSMENT YEAR: 2005-06 HOMEWAY MARKETING P. LTD., VS. ITO, 315, DHAKA CHAMBERS, WARD 12(4), 2068/38, NAIWALA, KAROL BAGH, ROOM NO. 331, NEW DELHI. C.R. BLDG., AABCH0130Q NEW DELHI. (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. SALIL MISHRA & SH. B.R.R. KUMAR, SR. DR ASSESSEE BY : NONE ORDER PER C.L. SETHI, J.M. BOTH ASSESSEE AND REVENUE ARE IN APPEAL AGAINST TH E ORDER DATED 01.02.2011 PASSED BY THE LD. CIT(A) FOR THE A.Y. 2005-06. ITA NOS. 2875 & 2291/D/11 2 2. IN THIS CASE, AN ADDITION OF RS. 18,50,000/- WAS MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED CRE DIT ENTRIES IN THE NAME OF THREE PARTIES, NAMELY, M/S P.K. INVE STMENTS (RS. 12,50,000/-), M/S ARPIT SALES CORPORATION (RS. 1 LAKH) & M/S SUVAN AGRO PVT. LTD. (RS. 5 LAKH). 3. ON AN APPEAL, THE LD. CIT(A) CONFIRMED THE ADDIT ION OF RS. 13,50,000/- BEING UNEXPLAINED CREDIT RECEIVED F ROM M/S P.K. INVESTMENTS AND M/S ARPIT SALES CORPORATION. HOWEVER, THE ADDITION OF RS. 5 LAKH BEING CREDIT IN THE NAME OF M/S SUVAN AGRO PVT. LTD. WAS DELETED. 4. THE REVENUE IS IN APPEAL AGAINST THE LD. CIT(A) S ORDER IN DELETING THE ADDITION OF RS. 5 LAKH ON ACCOUNT OF C REDIT ENTRY IN THE NAME OF M/S SUVAN AGRO PVT. LTD., AND THE ASSES SEE IS IN APPEAL AGAINST THE CIT(A)S ORDER IN CONFIRMING THE ADDITION OF RS. 13,50,000/- BEING CREDIT IN THE NAME OF P.K. IN VESTMENTS (RS. 12,50,000/-) AND M/S ARPIT SALES CORPORATION ( RS. 1 LAKH). 5. IN SO FAR AS, THE APPEAL FILED BY THE REVENUE IS CONCERNED, WE FIND THAT THE AMOUNT OF ADDITION DISP UTED IN THIS APPEAL IS ONLY OF RS. 5 LAKH ON WHICH TAX EFFECT WO ULD BE BELOW RS. 3 LAKH. ITA NOS. 2875 & 2291/D/11 3 6. THE CBDT HAS INSTRUCTED NOT TO FILE THE APPEAL B Y THE REVENUE WHERE TAX EFFECT INVOLVED IS NOT IN EXCESS OF RS.3,00,000/-. THE REVISED MONETARY LIMIT VIDE INS TRUCTION NO.3 DATED 9.2.2011 FOR FILING APPEAL BEFORE THE TR IBUNAL, HIGH COURT AND SUPREME COURT IS AS UNDER:- BEFORE THE INCOME TAX APPELLATE TRIBUNAL : RS.3 LAKHS, APPEALS U/S 260A OF THE IT ACT BEFORE THE HONBLE HIGH COURT : RS.10 LAKHS AND BEFORE THE HONBLE SUPREME COURT : RS.25 LAKHS IT IS SEEN THAT THE HONBLE HIGH COURT OF DELHI IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO.128/2008, DA TED 3 RD MARCH, 2011, HAS HELD AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS.4,65,860/-. AS PER RECENT GUIDELINES OF THE CBD T, APPEAL IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN 10 LACS, ARE NOT BE ENTERTAINED. THIS COURT IN THE CASE OF COMMISSIONER OF INCOME-TA X- III V. M/S. P.S. JAIN AND CO. BEING NO.179/1991 DEC IDED ON 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES. 7. THUS, THE APPEAL FILED BY THE REVENUE STANDS DIS MISSED. 8. NOW, WE COME TO THE APPEAL FILED BY THE ASSESSEE . THIS APPEAL WAS FIXED FOR HEARING ON 03.11.2011 WHEN AT THE ITA NOS. 2875 & 2291/D/11 4 REQUEST OF ASSESSEES COUNSEL THE MATTER WAS ADJOUR NED TO 15.12.2011. THE REVENUE APPEAL WAS ALSO DIRECTED T O BE FIXED ON 15.02.2011 AND A NOTICE OF HEARING IN RESPECT TH EREOF WAS SENT SEPARATELY, SO THAT BOTH THE CASES COULD BE TA KEN TOGETHER ON THE SAME DATE, AND THE SAID NOTICE HAS BEEN SERVED UPON THE ASSESSEE AS IS EVIDENT FROM ACKNOWLEDGEMENT RECEIPT PLACED ON RECORD. WHEN THE APPEAL FOR THE ASSESSEE WAS CALLED ON FOR HEARING ON 15.12 .2011, NONE FOR THE ASSESSEE WAS FOUND PRESENT NOR ANY APP LICATION FOR ADJOURNMENT WAS MOVED. WE, THEREFORE, TAKE A V IEW THAT THE ASSESSEE IS NOT INTERESTED IN PURSUING THE APPE AL FILED BY THE ASSESSEE. THUS, THE APPEAL FILED BY THE ASSESS EE STANDS DISMISSED FOR WANT OF PROSECUTION. 9. IN THE RESULT, BOTH THESE APPEALS, FILED BY THE REVENUE AS WELL BY THE ASSESSEE ARE DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 15.12.2011 IMMEDIATELY AFTER THE HEARING WAS OVER. SD/- SD/- (G.D. AGGRAWAL) (C.L. SETHI ) VICE PRESIDENT JU DICIAL MEMBER DATED: 15.12.11 *KAVITA ITA NOS. 2875 & 2291/D/11 5 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR ITA NOS. 2875 & 2291/D/11 6