ITO WARD 16(2), New Delhi V. Manglam Pack Pvt Ltd, New Delhi

ITA 3229/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6278 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 12-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARUL SINGH
• Keywords: Retrospective amendment; Accommodation entries; Tax effect
• Section: 201

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER I.T.A. NO. 3 229 / DEL/ 201 9 A.Y. : 201 1 - 1 2 DCIT, WARD - 16(2), NEW DELHI VS. M/S MA NGLAM PACK PVT. LTD., 29/8, VIKRAM VIHAR, LAJPAT NAGAR-IV, NEW DELHI 110 024 (PAN: AAACM6553F) (ASSESSEE) (RESPONDENT) REVENUE BY : MS. P ARUL SINGH, SR. DR. ASSESSEE BY : NONE ORDER THE REVENUE HAS FILED THIS APPEAL AGAINST THE IMPUGN ED ORDER DATED 14.2.2019 OF THE LD. CIT(A)-15, NEW DELHI RELE VANT TO ASSESSMENT YEAR 2011-12. 2. THE GROUNDS RAISED IN THE APPEAL READ AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 30,00,000/- MADE U/S. 68 OF THE ACT ON ACCOUNT OF ACCOMMODATION ENTRIES TAKEN BY THE ASSESSEE AND COMMISSION OF RS. 54,000/- PAID ON IT, EVEN THOUGH THE ASSESSEE HAS FAILED TO ESTABLISH BY COGENT AND RELIABLE EVIDENCE OF THE IDENTITY OF THE INVESTORS, THE CREDITWORTHINESS OF THE INVESTORS AND GENUINENESS OF THE TRANSACTIONS WHEREAS JURISDICTIONAL HIGH COURT HAS DECIDED THE CASE OF NDR PROMOTERS PVT. LTD. ON THE SAME ISSUE IN FAVOUR OF REVENUE. 2. THE LD. CIT(A) HAS IGNORED THE JUDGMENT PASSED IN FAVOUR OF REVENUE BY SUPREME COURT OF INDIA IN CA NO. 002463-002463/2019 DATED 5.3.2019 IN THE 2 CASE OF M/S NRA IRON & STEELS PVT. LTD. WHEREIN THE ORDER PASSED BY THE AO IN THE SAME ISSUED IS RESTORED. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER OR FORGO ANY GROUND(S) OF APPEAL EITHER BEFORE OR AT THE TIME OF THE APPEAL. 3. IN THIS CASE, NOTICE OF HEARING TO THE ASSESSEE W AS SENT BY THE REGISTERED AD POST, IN SPITE OF THE SAME, ASSESSEE, NOR ITS AUTHORIZED REPRESENTATIVE APPEARED TO PROSECUTE THE MATTE R IN DISPUTE, NOR FILED ANY APPLICATION FOR ADJOURNMENT. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE AND T HE ISSUE INVOLVED IN THE PRESENT APPEAL, I AM OF THE VIEW THAT N O USEFUL PURPOSE WOULD BE SERVED TO ISSUE NOTICE AGAIN AND A GAIN TO THE ASSESSEE, THEREFORE, I AM DECIDING THE PRESENT APPE AL EXPARTE QUA ASSESSEE, AFTER HEARING THE LD. DR AND PERUSING THE R ECORDS. 4. PERUSAL OF THE AFORESAID APPEAL FILED BY THE REV ENUE APPARENTLY SHOW THAT THE SAME IS HAVING LOW TAX EFFECT AS PER CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 VIDE WHICH THE REVENUE HAS BEEN DIRECTED NOT TO PREFER ANY APPEAL IN CASE THE TAX EFFECT IS LESS THAN RS.50,00,000/- AND THIS FACTUAL P OSITION HAS BEEN FAIRLY CONCEDED BY THE LD. D.R. 5. I HAVE HEARD THE LD. DR AND PERUSED THE MATERIAL ON RECORDS. PERUSAL OF CBDT CIRCULAR (SUPRA) SHOWS THAT MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE THE TRIBUNAL, HON 'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISED. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENCH OF THE TRIBUN AL IN CASE OF DINESH MADHAVLAL PATEL [TS-469-ITAT-2019(AHD)] 2019 - TIOL-1556-ITAT-AHM DATED 14 TH AUGUST, 2019 HAS ALREADY DECIDED THE ISSUE AS TO THE APPLICABILITY OF THE CAP TIONED CIRCULAR TO 3 THE PENDING APPEALS IN AFFIRMATIVE AND WHAT HAS BEEN DISCUSSED ABOVE, I AM OF THE CONSIDERED VIEW THAT THE AFORESA ID APPEAL IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT I.E. LESS THAN RS.50,00,000/- HENCE, THE AFORESAID APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED HAVING BEEN BECOME INFRUCTUOUS. HOWEVER, IN CASE, THE PRESENT APPEAL IS FOUND TO BE MAINTAINABLE AT ANY S TAGE FOR ANY TECHNICAL REASONS, THE DEPARTMENT SHALL BE AT LIBERTY TO SEEK RECALL OF THIS ORDER UNDER RELEVANT PROVISIONS OF LAW. 6. IN THE RESULT, THE REVENUES APPEAL STANDS DISMI SSED ORDER PRONOUNCED ON 11/02/2020. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE 11/02/2020 SRBHATNAGAR COPY FORWARDED TO: - 1. ASSESSEE - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES 4