ACIT, New Delhi V. M/s. S.A. Finvest Ltd., New Delhi

ITA 3200/DEL/2015

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6765 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 19-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Assessee Lawyers: ASHISH GOEL
• Keywords: Income from undisclosed sources; Tax effect
• Section: 254(2); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: B: NEW DELHI) BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT ME MBER ITA NO:- 3200/DEL/2015 (ASSESSMENT YEAR: 2005-06) ACIT, CIRCLE - 22 (2), NEW DELHI VS M/S S.A. FINEST LTD., 10, LOCAL SHOPPING CENTRE, KALKAJI, NEW DELHI-110019 PAN-AABCS5210Q APPELLANT RESPONDENT APPELLANT BY MS. ASHIMA NEB , SR. DR RESPONDENT BY SH. ASHISH GOEL, CA ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE ORDER DATED 19.03.2015 PASSED BY LEARNED PR. COMMISSIONER OF INCOME TAX (OSD) (APPEALS)-8, NEW DELHI [IN SHORT, LD. PR . CIT(A)] PERTAINING TO ASSESSMENT YEAR 2005-06. IN THIS APP EAL, THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT FIXED BY THE CENTRAL BOARD OF DIRECT TAXES (IN SHORT CBDT) IN ITS CIRCULAR NO.1 7/2009 DATED 08.08.2019. THE REVENUE HAS RAISED FOLLOWING GROUND S OF APPEAL:- (1) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOL DING THAT THE REOPENING OF THE ASSESSMENT U/S 147 IS NOT JUSTIFIE D AND THEREBY QUASHING THE ASSESSMENT ORDER PASSED U/S 147 OF THE INCOME TAX ACT. ITA NO: - 3200/DEL/2015 PAGE | 2 (2) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS. 85,50,000/- MADE BY THE AO BEING INCOME FROM UNDISCLOSED SOURCES. [B]. AT THE OUTSET, IT WAS BROUGHT TO THE NOTICE B Y LEARNED COUNSEL FOR THE ASSESSEE, AT THE TIME OF HEARING THAT TAX E FFECT IN THIS APPEAL IS BELOW RS. 50,00,000./-. VIDE RECENT CBDT CIRCULA R NO.17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO . 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIMIT OF TAX EF FECT OF FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL ('ITAT', FOR SHORT) HAS BEEN ENHANCED TO RS. 50,00,000/-. IN A S UBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F.NO. 279/MISC/M- 93/2018-ITJ, DATED 20/08/2019, IT HAS BEEN CLARIFIED BY CBDT THA T THE AFORESAID REVISED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PE NDING APPEALS IN ITAT. THEREFORE, IN VIEW OF THE FOREGOING, WE ARE O F THE VIEW THAT THIS APPEAL FILED BY REVENUE IS NOT MAINTAINABLE. THE LE ARNED DEPARTMENTAL REPRESENTATIVE ALSO DID NOT PRESS THE APPEAL. ACCORDINGLY, THIS APPEAL IS DISMISSED BEING NOT PRE SSED, AND ALSO NOT MAINTAINABLE, HAVING REGARD TO AFORESAID CBDT C IRCULAR 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 ITA NO: - 3200/DEL/2015 PAGE | 3 OF THE APPEAL IF IT IS FOUND THAT THIS APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07.2018. [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 15/10/2019. SD/- SD/- (SUDHANSHU SRIVASTAVA) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 15/10/2019 SH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DRAFT DICTATED 14.10.2019 DRAFT PLACED BEFORE AUTHOR APPROVED DRAFT COMES TO THE SR.PS/PS ORDER SIGNED AND PRONOUNCED ON FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER. DATE OF UPLOADING ON THE WEBSITE 15.10.2019