ITO, New Delhi V. M/s Norma Steel & Alloys (P) Ltd., New Delhi

ITA 3566/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3977 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2006-2007
• Appeal Filed On: 05-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bonafide belief; Tax effect
• Section: 143(3); 254(2); 148

Judgement Text

PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 3566/DEL/2017 ( ASSESSMENT YEAR: 2006-07) INCOME TAX OFFICER, WARD 18(4), NEW DELHI. VS. M/S NORMA STEEL & ALLOYS (P) LTD., 56, RAMA ROAD, INDUSTRIAL AREA, NEW DELHI- 110015. PAN NO: AAACN0868Q APPELLANT RESPONDENT REVENUE BY : MS. RAKHI VIMAL, SR. DR ASSESSEE BY : NONE PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-38, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 01.02.2017 FOR ASSESSMENT YEAR 2006-07. GROUNDS TAKEN IN THIS APP EAL OF REVENUE ARE AS UNDER: 1. WHETHER ON FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) IS LEGALLY JUSTIFIED IN QUASHING THE RE-ASSESSMENT PROCEEDINGS U/S 148 OF THE INCOME TAX ACT, 1961 (THE ACT) BY HOLDING THAT THE ASSESSING OFFICER (THE AO) HAD OBTAINED PRIOR APPROVAL OF COMPETENT A UTHORITY U/S 151(1) OF THE ACT EVEN WHEN THE AO HAD A BONAFIDE BELIEF T HAT AN ORDER U/S 143(3) OF THE ACT WAS NOT PASSED BEFORE ISSUING NOT ICE U/S 148 OF THE PAGE 2 OF 4 ACT AND ALSO ASSESSEE COULD NOT SUBSTANTIATE ITS CL AIM THAT ORDER U/S 143(3) OF THE ACT HAD ALREADY BEEN PASSED IN THIS C ASE? 2. WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) IS LEGALLY JUSTIFIED IN QUASHING THE RE-ASSESSMENT PRO CEEDINGS U/S 148 OF THE ACT BY ACCEPTING CLAIM AND DOCUMENTS FILED BY T HE ASSESSEE DURING APPELLATE PROCEEDINGS IN THIS REGARD EVEN WHEN THE ASSESSEE HAD NOT FULFILLED CONDITIONS AS LAID DOWN UNDER RULE 46A OF THE INCOME TAX RULE, 1961 (THE RULE) AND WITHOUT PROVIDING OPPORTUNITY O F BEING HEARD TO THE AO? 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR FOREGO ANY GROUND(S) OF THE APPEAL RAISED ABOVE AT THE TIME OF THE HEARING. (B) AT THE OUTSET, WE NOTICED AT THE TIME OF HEARING TH AT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,000/-. VIDE RECENT CBDT CIRCULAR N O. 17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11. 07.2018, MINIMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCO ME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) HAS BEEN ENHANCED TO RS. 50,00,000/-. IN A SUBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F.NO. 279/MISC/M-93/2018-ITJ, DATED 20/08 /2019, IT HAS BEEN CLARIFIED BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS A LSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. IN VIEW OF THE FOREGOING, THIS APPEAL IS NOT MAINTAINABLE. HAVING REGARD TO THE AFORESAID, THE LD. SR. DR FOR REVENUE DID NOT PRESS THE APPEAL. THEREFORE, THIS APPEAL IS DISMISSED BEING NOT PRESSED AND ALSO BEING NOT M AINTAINABLE HAVING REGARD TO AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.201 9 READ WITH AFORESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CL ARIFICATION DATED 20/08/2019. (C) BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) OF INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THIS A PPEAL IF IT IS FOUND THAT APPEAL PAGE 3 OF 4 OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULA RS DATED 08.08.2019 AND 11.07.2018. (D) IN THE RESULT, THIS APPEAL BY REVENUE IS DISMISSED. ORDER IS PRONOUNCED IN OPEN COURT ON 2 ND DAY OF NOVEMBER, 2020. SD/- SD/- (H.S. SIDHU) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 02/11/20 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI PAGE 4 OF 4 DATE OF DICTATION 28.10.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 28.10.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 28.10.2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 2 . 1 1 . 2 0 2 0 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 2 . 1 1 . 2 0 2 0 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 2 . 1 1 . 2 0 2 0 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 3.11.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 3.11.2020 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER