DCIT, New Delhi V. Sh Dwarka Prasad Aggarwal, New Delhi

ITA 3684/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7514 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 3
• Next Hearing Date: 13-06-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 20-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Assessee Lawyers: SAURABH GOYAL
• Keywords: Depreciation; Deemed dividend; Tax effect

Judgement Text

PAGE 1 OF 4 IN THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH SMC-3: NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 3684/DEL/2014 A.Y. : 2007-08 DEPUTY COMMISSIONER OF INCOME TAX VS. SH. DWARKA PR ASAD AGGARWAL CENTRAL CIRCLE-10, 34, SHANTI VIHAR, ROOM NO. 362, ARA CENTRE, DELHI E-2, JHANDEWALAN EXTN., (PAN: AAJPA8859J) NEW DELHI (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. KK JAISWAL, SR. DR ASSESSEE BY : SH. SAURABH GOYAL, CA DATE OF HEARING : 13-06-2016 DATE OF ORDER : 13-06-2016 O R D E R PER H.S. SIDHU, JM THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 18.3.2014 OF LD. CIT(A)-XXXII, NEW DELHI PERTAINING TO ASSESSMENT YEAR 2007-08 ON THE FOLLOWING GROUNDS:- 1. THAT THE CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE ADDITION OF RS. 19,03,491/- MADE BY AO ON ACCOUNT OF DEEMED DIVIDEND U/S. 2(22)(E) OF THE I.T. ACT, 1961. 2. THAT THE CIT(A) ERRED IN NOT INVOKING THE PROVISI ONS OF SECTION 250(4) OF THE INCOME TAX WHICH EMPOWERS LD. CIT(A) TO CONDUCT FURTHER ENQUIRY ON THE ISSUES INVOLVED IN THIS CA SE. PAGE 2 OF 4 3. THAT THE CIT(A) ERRED IN LAW AND FACTS OF THE CASE IN DELETING THE ADDITION OF RS. 2,30,816/- MADE BY AO ON ACCOUNT OF DISALLOWANCE OF INTEREST AND DEPRECIATION. 4(A) THE ORDER OF THE CIT(A) IS ERRONEOUS AND NOT TE NABLE IN LAW AND ON FACTS. (B) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY / ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF THE HEARING OF THE APPEAL. 2. FROM THE ABOVE, I FIND THAT THE TAX EFFECT IN TH E REVENUES APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 D ATED 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 T HE AFORESAID CBDTS CIRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVE N 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 MONETARY LIMITS PR ESCRIBED 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 PAGE 3 OF 4 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTION O R DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHOR ITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE PRESE NT 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 A BOVE SAID CBDTS INSTRUCTIONS. 4. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 D ATED 10 TH DECEMBER, 2015, I AM OF THE VIEW THAT THE REVENUE SHO ULD HAVE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE T RIBUNAL. I AM ALSO OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. ACCORD INGLY, THE REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/06/2016. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE: 13/6/2016 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4.CIT (A) 5. DR , ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES PAGE 4 OF 4