DCIT, Circle-16(2), New Delhi V. Master Promoters Pvt. Ltd, Delhi

ITA 3488/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6276 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 22-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARUL SINGH
• Assessee Lawyers: SANJAY SACHDEVA
• Keywords: Retrospective amendment; 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. 3488 / DEL/ 201 9 A.Y. : 201 5 - 1 6 DCIT, CIRCLE - 16(2), NEW DELHI VS. M/S MASTER PROMOTERS PVT. LTD., 23, PASCHIMI MARG, VASANT VIHAR, SOUTH WEST DELHI, DELHI 110 057 (PAN: AAECM6665J) (ASSESSEE) (RESPONDENT) REVENUE BY : MS. P ARUL SINGH, SR. DR. ASSESSEE BY : SH. SANJAY SACHDEVA, CA ORDER THE REVENUE HAS FILED THIS APPEAL AGAINST THE IMPUGN ED ORDER DATED 25.1.2019 OF THE LD. CIT(A)-36, NEW DELHI RELE VANT TO ASSESSMENT YEAR 2015-16. 2. THE GROUNDS RAISED IN THE APPEAL READ AS UNDER:- 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) IS LEGALLY JUSTIFIED IN DELETING THE DISALLOWANCE OF RS. 86,39,599/- ON ACCOUNT OF INTEREST PAID ON BORROWED CAPITAL FOR NON-BUSINESS PURPOSES? 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) IS LEGALLY JUSTIFIED IN HOLDING THAT INTEREST EXPENSE WOULD FORM PART OF BUSINESS 2 ACTIVITY, AS THE SAME HAD BEEN INCURRED FOR THE BUSINESS PURPOSE BY THE ASSESEE? 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND ALTE R OR FORGO ANY GROUND(S) OF APPEAL RAISED ABOVE AT THE TIME OF THE HEARING. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESS EE SUBMITTED THAT TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW THE P RESCRIBED LIMIT OF RS. 50 LACS, AS FIXED BY THE CBDT AND REQUESTED TO DI SMISS THE REVENUES APPEAL ON ACCOUNT OF LOW TAX EFFECT. 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 BOTH THE PARTIES AND PERUSED THE MAT ERIAL ON RECORD. PERUSAL OF CBDT CIRCULAR (SUPRA) SHOWS THAT M ONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE THE TR IBUNAL, HON'BLE HIGH COURT AND HON'BLE SUPREME COURT HAS BEEN REVISE D. IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 HAVING RETROSPECTIVE EFFECT AS COORDINATE BENCH OF THE TRIBU NAL 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 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 3 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