ACIT(OSD), Dehradun V. M/s. Kotdwar Steels Ltd., Kotdwar

ITA 3668/DEL/2010

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4931 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 10-05-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 30-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN GOTRU
• Keywords: Tax effect
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 3668/DEL/2010 ASSESSMENT YEAR: 2005-06 ACIT (OSD), VS. M/S KOTDWAR STEELS LTD. RANGE-1, BLOCK-E, INDUSTRIAL AREA, ANNEXE BUILDING, JASHODHARPUR, KOTDWAR 13-A, SUBHASH ROAD, UTTARAKHAND DEHRADUN (PAN: AABCK5842N) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SHRAVAN GOTRU, SR. DR RESPONDENT BY : SH. SANJAY MALIK, CA ORDER PER H.S. SIDHU, J.M. THIS APPEAL FILED BY THE DEPARTMENT IS DIRECTED AG AINST THE ORDER DATED 08.4.2010 OF LD. CIT(A)-I, DEHRADUN PERTAINING TO A SSESSMENT YEAR 2005-06. 2. THE GROUNDS RAISED IN THIS APPEAL READ AS UNDE R:- 1. THE LD. CIT(A) HAS ERRED IN NOT CONSIDERING THE MANUFACTURING RESULTS DECLARED BY THE SIMILAR UNITS WHEREIN UNDER SAME CIRCUMSTANCES YIELD WAS MUCH HIGHER THAN THAT ADOPT ED BY THE AO. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS BY DELETING ADDITION OF RS. 39,07,536/- ON ACCOUNT OF UNEXPLAINED EXPEND ITURE U/S. 69 OF THE I.T. ACT. 3. THE ORDER OF THE LD. CIT(A) BE SET ASIDE AND THA T OF THE AO BE RESTORED. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. AT THE THRESHOLD, LD. AR OF THE ASSESSEE FILED A TAX E FFECT CALCULATION AND STATED THAT TAX EFFECT IN THIS CASE IS RS. 6,54,469/- WHIC H IS BELOW THE PRESCRIBED 2 LIMIT. WE FIND CONSIDERABLE COGENCY IN THE SUBMISSI ONS OF THE LD. AR OF THE ASSESSEE AND OBSERVE THAT THE TAX EFFECT IN THE RE VENUE APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS C IRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S NO APPEALS IN INCOME-TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L WAS FILED. 4. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORI TIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE P RESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 5. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD H AVE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALSO OF THE VIEW THAT THE 3 SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING AP PEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/09/2017. SD/- SD/- (PRASHANT MAHARISHI) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01/09/2017 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR