ACIT, New Delhi V. M/s Believe Construction Pvt. Ltd., New Delhi

ITA 3463/DEL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1545 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2005-2006
• Appeal Filed On: 10-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER SL NO. ITA/IT(SS)A, CO NO. APPELLANT RESPONDENT AY/ ASST. PERIOD ASSESSEE BY/ RESPONDENT BY 1 768/DEL/2017 ACIT CIRCLE - 30(1), ROOM NO. 1302, 13 TH FLOOR, E - 2, BLCOK, JLN MARG, NEW DELHI RAHUL MISHRA, CHIRAG ENCLAVE, NEW DELHI PAN: AAFPM6245A 2004 - 05 NONE 2. CO NO. 83/DEL/2017 RAHUL MISHRA, CHIRAG ENCLAVE, NEW DELHI PAN: AAFPM6245A ACIT CIRCLE - 30(1), ROOM NO. 1302, 13 TH FLOOR, E - 2, BLCOK, JLN MARG, NEW DELHI 2004 - 05 NONE 3. 769/DEL/2017 ACIT CIRCLE - 30(1), ROOM NO. 1302, 13 TH FLOOR, E - 2, BLCOK, JLN MARG, NEW DELHI RAHUL MISHRA, CHIRAG ENCLAVE, NEW DELHI PAN: AAFPM6245A 2005 - 06 NONE 4. CO NO 84/DEL/2017 RAHUL MISHRA, CHIRAG ENCLAVE, NEW DELHI PAN: AAFPM6245A ACIT CIRCLE - 30(1), ROOM NO. 1302, 13 TH FLOOR, E - 2, BLCOK, JLN MARG, NEW DELHI 2005 - 06 NONE 5. 3457/DEL/2016 ACIT, CENTRAL CIRCLE - 4, ROOM NO. 354, ARA CENTRE, JHANDEWALN EXTN, NEW DELHI SHINE STAR BUILCON PVT. LTD, FLAT NO. 4, RR APARTMENT, 3 - 4, MANGLAPURI, MEHRAULI, NEW DELHI PAN: AAICS5795D 2006 - 07 SHRI LALIT MOHAN, CA 6. 3028/DEL/2016 ACIT, CIRCLE - 5(1), ROOM NO. 1504, 15 TH FLOOR, E - 2, BLOCK, SR. SP MUKHERJEE CIVI CENTRE, MINTO ROAD, NEW DELHI KK ROAD CARGO MOVERS, 217, DHAKA CHAMBERS, 2068/9, NAIWALA, KAROL BAGH, NEW DELHI PAN: AABFK4015A 2012 - 13 NONE 7. 3468/DEL/2016 ACIT, CENTRAL CIRCLE - 14, NEW DELHI GOPAL KUMAR GOYAL, H. NO. 436/16, CIVIL LINES, GURGAON PAN: AEFPG4807J 2004 - 05 SHRI LALIT MOHAN, CA 8. 3463/DEL/2016 ACIT, CENTRAL CIRCLE - 14, NEW DELHI BELIEVE CONSTRUCTION PVT. LTD, FLAT NO. 4, FR APARTMENT, 3 - 4, MANGLAPURI, MEHRAULI, NEW DELHI PAN: AACCB4636Q 2005 - 06 SHRI LALIT MOHAN, CA 9. CO NO. 260/DEL/2016 BELIEVE CONSTRUCTION PVT. ACIT, CENTRAL CIRCLE - 14, 2005 - 06 SHRI LALIT MOHAN, CA 2 LTD, FLAT NO. 4, FR APARTMENT, 3 - 4, MANGLAPURI, MEHRAULI, NEW DELHI PAN: AACCB4636Q NEW DELHI 10. 3916/DEL/2016 ACIT, CENTRAL CIRCLE - 12, ROOM NO. 354, E - 2, ARA CENTRE, JHANDEWALAN EXTN, NEW DELHI PRAVEEN KUMAR AGGARWAL, F - 8, GEETANJALI ENCLAVE, NEW DELHI PAN: AAHPA0660R 2008 - 09 NONE 11. 3917/DEL/2016 ACIT, CENTRAL CIRCLE - 12, ROOM NO. 354, E - 2, ARA CENTRE, JHANDEWALAN EXTN, NEW DELHI PRAVEEN KUMAR AGGARWAL, F - 8, GEETANJALI ENCLAVE, NEW DELHI PAN: AAHPA0660R 2007 - 08 NONE 12. 4845/DEL/2018 JCIT, OSD, CIRCLE - 21(1), ROOM NO. 391, 3 RD FLOOR, CR BUILDING, NEW DELHI RELIGARE SECURITIES LTD, 2 ND FLOOR, RAJLOK BUILDING, 24, NEHRU PLACE, NEW DELHI ] PAN: AAACF1952D 2014 - 15 NONE 13. 4098/DEL/2016 ITO, WARD - 62(4), ROOM NO. 2210, 22 ND FLOOR, CIVIC CENTRE, MINOTO ROAD, NEW DELHI PHOOL SINGH, PROP PS CONSTRUCTION CO, 147, HARSUKH APARTMENT, SECTOR - 7, DWARKA, NEW DELHI 2012 - 13 NONE 14 4503/DEL/2017 ACIT, ROOM NO. 219, 2 ND FLOOR, CR BUILDING, IP ESTATE, NEW DELHI RPS INFRASTRUCTURE LTD, 1117 - 1120, DLF TOWERS - B, 11 TH FLOOR, JASOLA, DISTRICT CENTRE, NEW DELHI 2013 - 14 SHRI ASHISH CHADHA & SHRI ASHISH GOEL, CA 15. 4545/DEL/2017 ACIT, CIRCLE - 19(2), NEW DELHI PEAK INFRATECH P LTD, 18/13, GANGA PLAZA, PUSA LANE, KAROL BAGH, DELHI 2011 - 12 NONE 16. 4178/DEL/2017 ACIT, CENTRAL CIRCLE - 13, NEW DELHI PRIDE RESIDENCY (P) LTD, (IN THE CASE OF M/S. SATKAR FINCAP LTD) F - 5/9, VASANT VIHAR, NEW DELHI 2006 - 07 NONE 17. 3633/DEL/2017 ITO, WARD - 2(4), NEW DELHI PATRONAGE WELFARE & EDUCATIONAL SOCIETY, 5/73, GUJJU KATRA SHAHDARA, DELHI 2006 - 07 NONE 18. 3679/DEL/2017 ITO, WARD - 2(2), MUZAFFARNAGAR REWATI SINGH, THROUGH L/H SH. HUKUM SINGH, H NO. 6, GANDHI COLONY, MUZAFFARNAGAR 2011 - 12 NONE 19. 6325/DEL/2016 ACIT, CIRCLE - 30(1), ROOM NO. 1302, 13 TH FLOOR, E - 2 BLOCK, SPM CIVIC CENTRE, JL NEHRU MARG, RISHI ASSOCIATES, N - 7, KAILASH COLONY, NEW DELHI 2012 - 13 NONE 3 NEW DELHI 20. 6317/DEL/2016 DCIT, CIRCLE - 19(2), NEW DELHI PARNIKA COMMERCIAL ESTATES PVT LTD, D - 64, 6 TH FLOOR, HIMALAYA HOUSE, 23, KG MARG, NEW DELHI 2013 - 14 NONE 21. 6157 /DEL/2016 ITO(E), WARD - 2(4), NEW DELHI PUNJAB NATIONAL BANK FORMERS WELFARE TRUST, 2 ND FLOOR, ALMARAM HOUSE, TOLSTOY MARG, NEW DELHI 2010 - 11 NONE 22. 6307/DEL/2016 ITO, WARD - 21(1), NEW DELHI RAMJI LAL CONSTRUCTION PVT. LTD, L - 1/288A, DDA FLATS, KALKAJI, NEW DELHI 2011 - 12 NONE 23. 1961/DEL/2018 ITO, WARD - 41(5), NEW DELHI PALTAN JAISWAL, 70/A - 40, RAMA ROAD, NAJAFGARH ROAD, DELHI 2014 - 15 NONE 24. 1909/DEL/2018 ACIT, CIRCLE - 19(2), NEW DELHI PETER SURGICAL INDIA PVT. LTD, W - 40, GREATER KAILASH - I, NEW DELHI 2013 - 14 NONE 25. 4175/DEL/2017 ACIT, CENTRAL CIRCLE - 13, NEW DELHI PRIDE RESIDENCY (P) LTD, (IN THE CASE OF M/S. FORYU OVERSEAS P LTD, F - 5/9, VASANT VIHAR, NEW DELHI 2005 - 06 NONE 26. 5493/DEL/2017 ITO, WARD - 20(1), NEW DELHI M/S. PRAYAG CHEMICALS PVT LTD, 314, PP TOWER, NETAJI SUBASH PLACE, PITAMPUR, NEW DELHI 2013 - 14 NONE 27. 4177/DEL/2017 ACIT, CENTRAL CIRCLE - 13, NEW DELHI PRIDE RESIDENCY PVT. LTD, (IN THE CASE OF M/S. SATKAR FINCAP LTD, NEW DELHI 2005 - 06 NONE 28. 4180/DEL/2017 ACIT, CENTRAL CIRCLE - 13, NEW DELHI PRIDE RESIDENCY (P) LTD, (IN THE CASE OF M/S. SPN MILK PRODUCTS INDS P LTD, F - 5/9, VASANT VIHAR, NEW DELHI 2005 - 06 NONE 29. 2865/DEL/2017 ITO, WARD - 78(2), NEW DELHI RANI PROMOTERS PVT LTD, B - 9, SHEKHAR APARTMENTS, MAYUR VIHAR, PHASE - I, ESTN, DELHI 2013 - 14 SHRI ASHISH GOEL & ASHISH CHADHA, CA 30. 2871/DEL/2017 ADDL CIT, SPECIAL RANGE - 7, NEW DELHI RL STEEL & ENERGY LTD, C - 1/A, OPPOSITE TO ARYA SAMAJ MANDIR, NIZAMUDDIN EAST, NEW DELHI 2011 - 12 SHRI RANJAN CHOPRA, CA 31. 1146/DEL/2017 ACIT, CIRCLE - 33(1), NEW DELHI RN SAHNI, 51, PACHIMI MARG, VASANT VIHAR, NEW DELHI 2011 - 12 NONE 32. 1014/DEL/2017 DCIT, CENTRAL CIRCLE, NEW DELHI RAJU VERMA, 17/1, CURZON ROAD, DALNWALA, DEHRADUN 2009 - 10 NONE 4 33. 5790/DEL/2017 ACIT, CENTRAL CIRCLE - 30, NEW DELHI M/S. RAMPRASTHA PROMOTERS & DEVELOPERS PVT LTD, NEW DELHI 2011 - 12 NONE 34. 3246/DEL/2017 DCIT, CENTRAL CIRCLE - 25, NEW DELHI REENA GOEL, E - 270, SASTRI NAGAR, NEW DELHI 2012 - 13 NONE 35. 3245/DEL/2017 DCIT, CENTRAL CIRCLE - 25, NEW DELHI REENA GOEL, E - 270,SASTRI NAGAR, NEW DELHI 2011 - 12 NONE 36. 5212/DEL/2017 ITO, WARD - 62(2), NEW DELHI RAM KUMAR ROY, PROP. M/S. PRIYANSHU ENTERPRISES, 405, DDA FLATS, PUL PRAHLADPUR, DELHI 2012 - 13 NONE 37. 561/DEL/2017 DCIT, CIRCLE - 20(2), NEW DELHI RADCLIFFE SCHOOLS EDUCATION PVT. LTD, BADARPUR, DELHI MATHURA ROAD, DELHI 2012 - 13 NONE 38. 5156/DEL/2017 ITO, WARD - 20(1), NEW DELHI PIYUSH POLYMERS PVT. LTD, 715, RING ROAD MALL, MANGLAM PLACE, SECTOR - 3, ROHINI, DELHI 2007 - 08 NONE 39. 5637/DEL/2017 ACIT, CENTRAL CIRCLE - 6, NEW DELHI P MAHALINGAMJ, NO. 61, POORVI MARG, VASANT VIHAR, NEW DELHI 2010 - 11 NONE 40. 5817/DEL/2017 ACIT CENTRAL CIRCLE - 58(1), NEW DELHI PAWAN KUMAR, ROOM NO. 218, D - BLOCK, VIKASH BHAWAN, NEW DELHI 2014 - 15 NONE 41. 5668/DEL/2017 ACIT, CENTRAL CIRCLE - 17, NEW DELHI VLS FINANCE LTD, 13, SANT NAGAR, 2 ND FLOOR, EAST OF KAILASH, NEW DELHI 2014 - 15 NONE 42. 5745/DEL/2017 DCIT, CIRCLE - 2, MUZAFFARNAGAR TIKAULA SUGAR MILLS LTD, 25 - B, GHER KHATTI, GAUSHALA ROAD, MUZAFFARNAGAR 2013 - 14 NONE 43. CO 228/DEL/2017 TIKAULA SUGAR MILLS LTD, 25 - B, GHER KHATTI, GAUSHALA ROAD, MUZAFFARNAGAR DCIT, CIRCLE - 2, MUZAFFARNAGAR 2013 - 14 NONE 44. 4594/DEL/2017 ITO, WARD - 2(1), NEW DELHI PRAGATI ASSOCIATES, 9/14, IDGAH MEHANT FLATS, CHAKRATA ROAD, DEHRADUN 2013 - 14 NONE 45. 4268/DEL/2016 ACIT, CENTRAL CIRCLE - 17, JHANDEWALAN, NEW DELHI ROYAL GEMS, 1382, MAIN ROAD, MALIWARA, CHANDNI CHOWK, NEW DELHI 2008 - 09 NONE 46. 6680/DEL/2016 ACIT, CENTRAL CIRCLE - 19, JHANDEWALAN EXTN, NEW DELHI RBRL AGRO COMMODITIES LTD, 4088 - 94, NAYA BAZAR, NEW DELHI 2012 - 13 NONE 47. 6681/DEL/2016 ACIT, RBRL AGRO COMMODITIES 2013 - 14 NONE 5 CENTRAL CIRCLE - 19, JHANDEWALAN EXTN, NEW DELHI LTD, 4088 - 94, NAYA BAZAR, NEW DELHI REVENUE BY : SHRI SURENDER PAL, SR. DR DATE OF HEARING 23/08/2018 DATE OF PRONOUNCEMENT 1 0 / 09 /2018 ORDER PER BENCH : 1 . THESE APPEALS BY THE REVENUE ARISE OUT OF THE ORDERS PASSED BY THE CIT(A) IN RELATION TO THE CAPTIONED ASSESSMENT YEARS. 2 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.03/2018 DATED 11 TH JULY 2018 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EF FECT IS LESS THAN RS.20 LAKHS. HE FURTHER REFERRED TO ANOTHER CIRCULAR DATED 20.08.2018 ISSUED BY CBDT AND SUBMITTED THAT THE CASES WHICH ARE FALLING INTO EXCEPTION CANNOT BE DISMISSED , EVEN IF TAX EFFECT IS LESS THAN RS. 20 LAKHS. HE, THEREFORE, SUBMITTED THAT HE NEEDS TO VERIFY WHETHER ANY SUCH FACTS ARE EXISTING IN THE ABOVE LISTED CASES. THEREFORE, HE PLEADED THAT THE APPEAL S OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. 3 . LD AR ALSO REITERATED SAME FACTS. 4 . WE HAVE HEARD BOTH THE SIDES ON THE I SSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 11 TH JULY 2018 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE D EPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURT S AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT E XCEED THE MONETARY LIMITS GIVEN HEREUNDER : - 6 SL.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT(IN RS.) 1. BEFORE APPELLATE TRIBUNAL 20,00,000 2. BEFORE HIGH COURT 50,00,000 3. BEFORE SUPREME COURT 1,00,00,000 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 5 . WE HAVE CONSCIOUSLY REVIEWED EACH OF THE ABOVE APPEALS, HOWEVER, COULD NOT FIND ANY SUCH ISSUES INVOLVED IN THESE APPEALS WHICH ARE COVERED BY EXCEPTION TO THE TAX EFFECT CIRCULAR AS MENTIONED IN AMENDED PARA NO. 10 OF THAT CIRCULAR. INSTANTANEOUSLY, LD DR ALSO COULD NOT SHOW ANY SUCH INSTANCE IN THESE APPEALS. 6 . WE FIND THAT THE TAX EFF ECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.20 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX A UTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRES SED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.20 LAKHS. 5. IN VIEW OF THE ABOVE, CIRCULAR NO.3/2018 DATED 10.07.2018 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRE CEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.20 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL S FILED BY THE REVENUE ARE NOT MAINTAINABLE. WE ALSO HASTENED TO ADD THAT CERTAIN TIMES IN STANCES STATED IN PARA NO. 10 OF THE CIRCULAR ARE NOT DISCERNABLE FROM THE ASSESSMENT AND APPELLATE ORDERS, THEREFORE, IN SUCH CASES, WE ALSO GIVE LIBERTY TO REVENUE THAT IF SUCH INSTANCES COMES TO THEIR NOTICE THAN HE MAY FILE MISCELLANEOUS APPLICATION WI TH SUCH EVIDENCES. 7 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 1 0 / 09 /2018. - S D / - - S D / - ( AMIT SHUKLA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 0 / 09 /2018 . A K KEOT COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR, ITAT AR, ITAT, NEW DELHI.