DCIT, New Delhi V. M/s. Puri Oil Mills Ltd, New Delhi

ITA 3885/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5653 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 12-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K JIWANI
• Assessee Lawyers: SARJIWAN KUMAR MANAGER ACS
• Keywords: Tax effect
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 3885/DEL/2015 ASSESSMENT YEAR: 2009-10 DCIT, CIRCLE 20(1), VS. M/S PURI OIL MILLS L TD., ROOM NO. 219, 2 ND FLOOR, 302, JYOTI SHIKHAR, C.R. BUILDING, 8, DISTRICT CENTRE JANAK PURI I.P. ESTATE, NEW DELHI NEW DELHI 110 058 (PAN:AAACP3653M) (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. V.K. JIWANI, SR. D R. ASSESSEE BY : SH. SARJIWAN KUMAR, MANAGER A/CS. ORDER PER H.S. SIDHU, JM THE DEPARTMENT HAS FILED THIS APPEAL WHICH IS EMAN ATE FROM THE ORDER DATED 02.3.2015 OF LD. CIT(A)-7, NEW DELHI PERTAINING TO ASSESSMENT YEAR 2009-10. THE GROUNDS RAISED IN THE REVENUES APPEAL READ AS UNDE R:- 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE VAT INCENTI VE OF RS. 26,93,562/- CLAIMED BY THE ASSESSEE FOR COMPUTATIO N OF DEDUCTION U/S. 80IC, MORESO IN VIEW OF THE FACT THA T IN AY 2007- 08, THE LD. CIT(A) HAS CONFIRMED THE ACTION OF THE AO IN ITS OWN CASE OF THE ASSESSEE. 2. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 26,246/- WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE WAS REQUIRED TO DEDUCT TAX U/S. 194C OF THE I.T. ACT, ON THE PAYMEN T TO THE PEST CONTROL CONTRACTOR. 3. THE APPELLATE CRAVES TO BE ALLOWED TO ADD ANY FRESH GROUND OF APPEAL AND / OR DELETE OR AMEND ANY OF THE GROUNDS OF APPEAL. 2 2. ON PERUSING THE AFORESAID GROUNDS, WE FIND THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN RS.10,00,000/-, THERE FORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCUL AR 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 CIRCULAR 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. 3. 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. 3 4. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HA VE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALS O OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE STAN DS DISMISSED. ORDER PRONOUNCED ON 20/06/2018. SD/- SD/- (L.P. SAHU) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 20/06/2018 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR 4