ACIT, New Delhi V. Sh. Gurcharan Singh Bhatia, New Delhi

ITA 3021/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8733 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 15-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUGANDHA SHARMA
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: C: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI ANADEE NATH MISSHRA, ACCOUNTANT ME MBER ITA NO:- 3021/DEL/2017 (ASSESSMENT YEAR: 2012-13) ACIT, CIRCLE-47(1), ROOM NO.107, DRUM SHAPE BUILDING, I.P.ESTATE, NEW DELHI. VS GURCHARAN SINGH BHATIA, CIT(A)-9, WEST END COLONY, NEW DELHI-110021. PAN-AHNPB4697E APPELLANT RESPONDENT APPELLANT BY MS. SUGANDHA SHARMA, SR.DR RESPONDENT BY SHRI V.RAJA KUMAR, ADV. ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAI NST THE ORDER DATED 23.02.2017 PASSED BY LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-16, NEW DELHI [IN SHORT LD.CIT(A)] P ERTAINING TO ASSESSMENT YEAR 2012-13. IN THIS APPEAL, THE TAX E FFECT IS LESS THAN THE MONETARY LIMIT FIXED BY THE CENTRAL BOARD OF DI RECT TAXES (IN SHORT CBDT) IN ITS CIRCULAR NO.17/2009 DATED 08.0 8.2019. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT (A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS . 42,67,575/- MADE BY AO ON ACCOUNT OF BOGUS LIABILITY AS THE ASS ESSEE COULD NOT ESTABLISH THE NATURE OF LIABILITY. MOREOV ER, THE ITA NO:- 3021/DEL/2017 (ASSESSMENT YEAR: 2012-13) PAGE | 2 ASSESSEE WAS NOT DOING ANY BUSINESS DURING THE YEAR AND IN SUBSEQUENT YEAR ALSO. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT (A) HAS ERRED IN LAW IN DELETING THE ADDITION OF R S. 3,35,252/- MADE BY AO WITHOUT GIVING ANY APPROPRIATE FACTS. TH E INCOME TAX ACT SPECIFIES THE HEAD OF INCOME UNDER WHICH IN COME IS TO BE TAXED AND AS THE SOURCE OF INCOME WAS FROM UNDIS CLOSED SOURCES IT HAD TO BE TAXED UNDER THE HEAD OF INCOME FROM OTHER SOURCES. 3. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE T HE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION WI THOUT APPRECIATING THE FACT OF THE CASE. 4. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) O F APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS AP PEAL. [B]. AT THE OUTSET, LEARNED SENIOR DEPARTMENTAL RE PRESENTATIVE ('LD. DR)', FOR SHORT] BROUGHT TO OUR NOTICE, AT TH E TIME OF HEARING THAT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,0 00./-. BOTH SIDES, [REPRESENTATIVES OF REVENUE AND THE ASSESSEES] WERE IN AGREEMENT, AT THE TIME OF HEARING BEFORE US, THAT T HE TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,000/-. VIDE RECENT C BDT CIRCULAR NO.17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. ITA NO:- 3021/DEL/2017 (ASSESSMENT YEAR: 2012-13) PAGE | 3 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIMI T OF TAX EFFECT OF FILING OF APPEALS BY REVENUE IN INCOME TA X APPELLATE TRIBUNAL ('ITAT', FOR SHORT) HAS BEEN ENHANCED TO R S. 50,00,000/-. IN A SUBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F .NO. 279/MISC/M-93/2018-ITJ, DATED 20/08/2019, IT HAS BE EN CLARIFIED BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT I S ALSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. HAVING REGARD TO TH E AFORESAID, THE LD. SR. DR FOR REVENUE DID NOT PRESS THE APPEAL. TH E LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL WAS NOT MAINTAINABLE IN VIEW OF THE AFORESAID CBDT CIRCULAR S DATED 08.08.2019 AND 11.07.2018; AND THE AFORESAID CLARIF ICATION DATED 20.08.2019 ISSUED BY CBDT. THEREFORE, IN VIEW OF TH E FOREGOING, THIS APPEAL IS DISMISSED BEING NOT PRESSED AND ALSO BEING NOT MAINTAINABLE HAVING REGARD TO AFORESAID CBDT CIRCUL AR NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CBDT C IRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATION D ATED 20/08/2019. [C]. BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL B E AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THE APPEAL IF IT IS FOUND THAT ANY APPEAL (S) OF REVENUE ARE/ IS NOT COVERED BY AFORESAID CBDT CIRCULAR S DATED 08.08.2019 AND 11.07.2018. ITA NO:- 3021/DEL/2017 (ASSESSMENT YEAR: 2012-13) PAGE | 4 [D]. IN THE RESULT, THE APPEAL BY REVENUE IS DISMI SSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AF TER CONCLUSION OF HEARING ON THE DATE OF HEARING. NOW, THIS WRITTE N ORDER IS PRONOUNCED IN OPEN COURT ON 11/9/2019. SD/- SD/- (AMIT SHUKLA) (ANADEE NATH M ISSHRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 11.09.2019 * AMIT KUMAR * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI