ITO, New Delhi V. M/s. Online Securities India Pvt. ltd., New Delhi

ITA 3112/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4260 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 04-05-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 22-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KULDEEP SHARMA
• Keywords: Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH : F NEW DELHI) (DELHI BENCH : F NEW DELHI) (DELHI BENCH : F NEW DELHI) (DELHI BENCH : F NEW DELHI) BEFORE SHRI G.E. VEERABHADRAPPA, HONBLE VICE PRES IDENT AND BEFORE SHRI G.E. VEERABHADRAPPA, HONBLE VICE PRES IDENT AND BEFORE SHRI G.E. VEERABHADRAPPA, HONBLE VICE PRES IDENT AND BEFORE SHRI G.E. VEERABHADRAPPA, HONBLE VICE PRES IDENT AND SHRI A.D. JAIN, JUDICIAL MEMMBER SHRI A.D. JAIN, JUDICIAL MEMMBER SHRI A.D. JAIN, JUDICIAL MEMMBER SHRI A.D. JAIN, JUDICIAL MEMMBER I.T.A. NO.3112/DEL./2010 I.T.A. NO.3112/DEL./2010 I.T.A. NO.3112/DEL./2010 I.T.A. NO.3112/DEL./2010 (ASSESSMENT YEAR : 2001 (ASSESSMENT YEAR : 2001 (ASSESSMENT YEAR : 2001 (ASSESSMENT YEAR : 2001- -- -02) 02) 02) 02) ITO, WARD 13(4), ITO, WARD 13(4), ITO, WARD 13(4), ITO, WARD 13(4), VS. VS. VS. VS. ONLINE SECURITIES ONLINE SECURITIES ONLINE SECURITIES ONLINE SECURITIES INDIA PVT. LTD. INDIA PVT. LTD. INDIA PVT. LTD. INDIA PVT. LTD. NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. E EE E- -- -9/411, SECTOR 3, ROHINI, 9/411, SECTOR 3, ROHINI, 9/411, SECTOR 3, ROHINI, 9/411, SECTOR 3, ROHINI, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (PAN/GIR NO. : AAACO4985D) (PAN/GIR NO. : AAACO4985D) (PAN/GIR NO. : AAACO4985D) (PAN/GIR NO. : AAACO4985D) (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SHRI KULDEEP SHARMA, CA ASSESSEE BY : SHRI KULDEEP SHARMA, CA ASSESSEE BY : SHRI KULDEEP SHARMA, CA ASSESSEE BY : SHRI KULDEEP SHARMA, CA REVENUE BY : SMT. ANUSHA KHURANA, SR.DR REVENUE BY : SMT. ANUSHA KHURANA, SR.DR REVENUE BY : SMT. ANUSHA KHURANA, SR.DR REVENUE BY : SMT. ANUSHA KHURANA, SR.DR ORDER ORDER ORDER ORDER PER A.D. JAIN, JM THIS IS DEPARTMENTS APPEAL FOR ASSESSMENT YEAR 2001-02 AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)- XVIII, NEW DELHI, DATED 06.10.2010. 2. THE ISSUE RAISED IN THIS APPEAL IS THAT LD. COMMISSIONE R OF INCOME TAX (APPEALS) HAS ERRED BY DELETING THE ADDITI ON OF `6,35,052 MADE U/S 68 ON ACCOUNT OF ALLEGED SALE CONSIDERATION O F SHARE SHOWN AS RECEIVED BY THE ASSESSEE. 3. AT THE THRESHOLD, WE NOTE THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN ` 3 LAKHS. AS PER INSTRUCTION NO. 3/2011 (F.NO. 279/MISC./142/2007-ITJ) DATED 09.02.2011 ISSUED BY THE CBDT, THE TAX EFFECT FOR FILING APPEAL BEFORE THE APPELLATE TRIBU NAL SHOULD BE MORE THAN ` 3 LAKHS. IN THE PRESENT CASE, ADMITTEDLY THE T AX IS BELOW ` 3 LAKHS. HENCE, THE APPEALS ARE IN CONTRAVENTION OF THE AFORESAID CBDT CIRCULAR/INSTRUCTION. HENCE, THE SAME IS LIABLE TO BE DISMISSED. ACCORDINGLY, THESE APPEALS BY THE REVENUE STAND DISMISSED FOR TAX EFFECT. 4. THE LD.COUNSEL FOR THE ASSESSEE HAS ALSO SUBMITTED THAT THE CASE IS ALSO COVERED BY THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT, DELHI-III VS. M/S P.S. JAIN AND CO., BEIN G I.T.A. NO.179/1991 DATED 2.8.2010, IN WHICH THE HONBLE HIGH COURT OB SERVED THAT: IN CIT VS. ASHOK KUMAR MANIBHA PATEL AND CO.(2009) 31 7 ITR 386 (MP), A DIVISION BENCH OF MADHYA PRADESH HAS HELD AS TH US: 13. QUITE APART FROM THE ABOVE, WE MAY ALSO NOTE THA T THIS COURT IN THE CASE OF CWT VS. DR. AJAD KUMAR JAIN( HUF), SAGAR (W.P. NO.162/98), WHILE TAKING NOTE OF THE TA X IMPACT AND PLACING RELIANCE ON THE DECISION RENDERED IN CIT V. PITHWA ENGINEERING WORKS (2005) 276 ITR 519 (BOM.), HAS OPINED THUS: 11. THE FACTUAL SCENARIO CAN BE PERCEIVED FROM ANOTHER ASPECT. SUBMISSION OF MR. A.K. SHRIVASTAVA, LEARNED COUNSEL FOR THE RESPONDENT IS THAT THE TAX IMPACT IS `52,565/- AND, THEREFORE, AS PER THE CIRCUL AR OF THE CENTRAL BOARD OF DIRECT TAXES THE REFERENCE NEED NOT BE ADVERTED TO. A DIVISION BENCH OF THE HIGH COURT OF BOMBAY IN THE CASE OF CIT VS. PITHWA ENGG. WORKS (2005) 276 ITR 519 (BOM.), IN PARAGRAPH 6 EXPRESSED THE VIEW AS UNDER (PAGE 520): THIS COURT CAN VERY WELL TAKE JUDICIAL NOTICE OF TH E FACT THAT BY PASSAGE OF TIME MONEY VALUE HAS GONE DOWN, THE COST OF LITIGATION EXPENSES HAS GONE UP, THE ASSESSEES ON THE FILE OF THE DEPARTMENTS HAVE BEEN INCREASED CONSEQUENTLY, THE BURDEN ON THE DEPARTMENT HAS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR COURTS ARE CHOCKED WITH HUGE TENDENCY OF CASES. IN THIS VIEW OF THE MATTER, THE BOARD HAS RIGHTLY TAKEN A DECISION NOT TO FILE REFERENCES IF THE TAX EFFECT IS LESS THAN R S.2 LAKHS. THE SAME POLICY FOR OLD MATTERS NEED TO BE ADOPTED BY THE DEPARTMENT. IN OUR VIEW, THE BOARD S CIRCULAR DATED MARCH 27,2000 IS VERY MUCH APPLICABLE EVEN TO THE OLD REFERENCES WHICH ARE STILL UNDECIDED. THE DEPARTMENT IS NOT JUSTIFIED IN PROCEEDING WITH THE OLD REFERENCES WHEREIN THE TAX IMPACT IS MINIMAL. THUS, THERE IS NO JUSTIFICATION TO PROCEED WITH DECADES OLD REFERENCES HAVING NEGLIGIBLE TAX EFFECT. 3. JUDGED FROM BOTH ANGLES WOULD ANSWER THE REFERENCE IN THE NEGATIVE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 4. IN THE RESULT, THE APPEALS FILED BY THE REVENUE AR E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04.05.2011 UP ON CONCLUSION OF HEARING. SD/- SD/- (G.E. VEERABHADRAPPA) (A.D. JAIN) VICE PRESIDENT JUDICIAL MEMBER DATED: MAY 04, 2011. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A)-XVIII, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT