ITO, Delhi V. M/s. International Land Developers Ltd., New Delhi

ITA 3392/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4224 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 21-04-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 09-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MONA MOHANTY
• Assessee Lawyers: C S AGGARWAL; R P MALL
• Keywords: Deemed dividend; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH C CC C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI C.L.SETHI, JM AND SHRI BEFORE SHRI C.L.SETHI, JM AND SHRI BEFORE SHRI C.L.SETHI, JM AND SHRI BEFORE SHRI C.L.SETHI, JM AND SHRI K. K.K. K.D.RANJAN D.RANJAN D.RANJAN D.RANJAN, AM , AM , AM , AM ITA NO. ITA NO. ITA NO. ITA NO.3392/DEL/2010 3392/DEL/2010 3392/DEL/2010 3392/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2007 2007 2007 2007- -- -08 0808 08 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -50(1), 50(1), 50(1), 50(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S INTERNATIONAL LAND DEVELOPERS M/S INTERNATIONAL LAND DEVELOPERS M/S INTERNATIONAL LAND DEVELOPERS M/S INTERNATIONAL LAND DEVELOPERS LIMITE LIMITE LIMITE LIMITED, D,D, D, B BB B- -- -418, NEW FRIENDS COLONY, 418, NEW FRIENDS COLONY, 418, NEW FRIENDS COLONY, 418, NEW FRIENDS COLONY, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. T TT TAN NO. AN NO. AN NO. AN NO.DELI06067F. DELI06067F. DELI06067F. DELI06067F. (APPELLANT) (RESPONDENT) CROSS CROSS CROSS CROSS- -- -OBJECTION NO.220/DEL/2010 OBJECTION NO.220/DEL/2010 OBJECTION NO.220/DEL/2010 OBJECTION NO.220/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2007 2007 2007 2007- -- -08 0808 08 M/S INTERNATIONAL LAND M/S INTERNATIONAL LAND M/S INTERNATIONAL LAND M/S INTERNATIONAL LAND DEVELOPERS LIMITED, DEVELOPERS LIMITED, DEVELOPERS LIMITED, DEVELOPERS LIMITED, B BB B- -- -418, NEW FRIENDS COLONY, 418, NEW FRIENDS COLONY, 418, NEW FRIENDS COLONY, 418, NEW FRIENDS COLONY, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. TAN NO.DE TAN NO.DE TAN NO.DE TAN NO.DELI06067F. LI06067F. LI06067F. LI06067F. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -50(1), 50(1), 50(1), 50(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : MS.MONA MOHANTY, SR.DR ASSESSEE BY : SHRI C.S.AGGARWAL, SR.ADVOCATE AND SHRI R.P.MALL, ADVOCATE. ORDER ORDER ORDER ORDER PER BENCH : PER BENCH : PER BENCH : PER BENCH : THE DEPARTMENT IS IN APPEAL AGAINST THE ORDER DATE D 30.4.2010 PASSED BY LEARNED CIT(A) IN DELETING THE DEMAND OF `80,160/- RAISED BY THE AO U/S 201/201(1A) OF THE INCOME-TAX ACT, 1961 FOR THE AY 2006- 07. ITA-3392/D/2010 & CO-220/D/2010 2 2. IN THIS CASE, THE AO RAISED A DEMAND OF `80,160/ - BEING THE TAX ALLEGED TO BE DEDUCTED AT SOURCE ON THE PAYMENT MAD E TO CERTAIN CONCERNS TREATING THEM TO BE THE PAYMENT IN THE NAT URE OF BROKERAGE AMOUNT AND ALSO DEEMED DIVIDEND U/S 2(22)(E) OF THE ACT. 3. ON AN APPEAL, LEARNED CIT(A) VACATED THE DEMAND BY OBSERVING THAT THE ASSESSEE WAS NOT IN DEFAULT IN NOT DEDUCTI NG TAX AT SOURCE ON THE VARIOUS PAYMENTS MADE TO DIFFERENT CONCERNS. I N THE COURSE OF HEARING OF THIS APPEAL, IT WAS POINTED OUT BY THE L EARNED COUNSEL FOR THE ASSESSEE THAT THE TOTAL TAX EFFECT IN THE PRESE NT CASE COMES TO `80,160/- ONLY WHICH IS BELOW `2 LAKHS, THE LIMIT P RESCRIBED BY THE CBDT FOR THE PURPOSE OF FILING THE APPEAL BY THE DE PARTMENT BEFORE THE TRIBUNAL. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. 5. IT IS NOT IN DISPUTE THAT TOTAL TAX EFFECT INVOL VED IN THE PRESENT CASE IS ONLY OF `80,160/-. THIS APPEAL WAS FILED B Y THE DEPARTMENT IN THE MONTH OF JULY, 2010. THE MONETARY LIMIT PRESCR IBED BY THE BOARD FOR THE PURPOSE OF FILING THE APPEAL BEFORE THE TRI BUNAL WAS FIXED AT `2 LAKHS VIDE CIRCULAR NO.5/2008 DATED 15.5.2008. IN THE LIGHT OF THE AFORESAID BOARDS CIRCULAR, WE ARE OF THE CONSIDERE D VIEW THAT SINCE THE TAX EFFECT WAS BELOW `2 LAKHS, THE DEPARTMENT SHOUL D NOT HAVE FILED THIS APPEAL BEFORE THE TRIBUNAL. WE, THEREFORE, DI SMISS THIS APPEAL AS NOT MAINTAINABLE. 6. THE ASSESSEE HAS ALSO FILED CROSS-OBJECTION TAKI NG A GROUND THAT THOUGH CIT(A) HAS DELETED THE ADDITION, HE HAS NOT CONSIDERED VARIOUS ARGUMENTS OF THE ASSESSEE. SINCE THE APPEAL FILED BY THE DEPARTMENT STANDS DISMISSED AS NOT MAINTAINABLE, THE CROSS-OBJ ECTION FILED BY THE ITA-3392/D/2010 & CO-220/D/2010 3 ASSESSEE HAS BECOME REDUNDANT AND THE SAME STANDS D ISMISSED AS INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL OF THE REVENUE AS WELL AS CROSS- OBJECTION FILED BY THE ASSESSEE STANDS DISMISSED AS INDICATED ABOVE. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 21 ST APRIL, 2011. SD/- SD/- (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN) )) ) (C.L.SETHI (C.L.SETHI (C.L.SETHI (C.L.SETHI) )) ) ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 21.04.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR ITA-3392/D/2010 & CO-220/D/2010 4