ACIT, CC- 27, NEW DELHI V. APOORVA EXTRUSION PVT. LTD., NEW DELHI

ITA 3904/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6957 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 23-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL GULATI
• Keywords: Tax effect
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI A BENCH: NEW DELHI (THROUGH VIDEO CONFERENCING ) BEFORE SHRI G.S.PANNU, PRESIDENT & SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.3904/DEL/2018 ASSESSMENT YEAR : 2007-08 ACIT, CENTRAL CIRCLE-27, NEW DELHI. VS APOORVA EXTRUSION PVT.LTD., 305, 3 RD FLOOR, BHANOT CORNER, PAMPOSH CORNER, GREATER KAILASH-I, NEW DELHI-110048. PAN-AAACA2120L APPELLANT RESPONDENT APPELLANT BY SH. SATPAL GULATI, CIT DR RESPONDENT BY SH. M.P.RASTOGI, ADV. DATE OF HEARING 06.09.2021 DATE OF PRONOUNCEMENT 06.09.2021 ORDER PER KUL BHARAT, JM : THE PRESENT APPEAL FILED BY REVENUE FOR THE ASSES SMENT YEAR 2007- 08 IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-29, NEW DELHI DATED 22.03.2018. THE REVENUE HAS RAISED FOLLOWING GROUN DS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) HAS ERRED IN RESTRICTING THE ADDITIONS MADE BY THE AO ON ACCOUNT OF CAPITAL GAIN BY IGNORING THE FACT THAT THE ADDIT ION WAS MADE ON THE BASIS OF THE ORDER PASSED BY THE HON'BLE SETTLE MENT COMMISSION. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN RESTRICTING THE ADDITION MADE BY THE A O ON ACCOUNT OF CAPITAL GAIN FROM RS.3,71,73,360/- TO RS.1,59,99 ,840/- BY IGNORING THE FACT THAT THE HON'BLE SETTLEMENT COMMI SSION GAVE A CATEGORICAL FINDING THAT RS. 13 CRORE WERE PAID BY THE BUYER TO AC GROUP (HOLDING M/S ANSHIKA INVESTMENT PVT. LTD., M/ S A. R. ITA NO. 3904/DEL/2018 2 | P A GE LEASING PVT. LTD., M/S APOORVA EXTRUSION PVT. LTD. & M/S ANSHIKA CONSULTANT PVT. LTD.). 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN HOLDING THAT THE ADDITIONAL CONSIDERAT ION WAS PAID TO ACQUIRE 4,50,000 EQUITY SHARES INSTEAD OF 2,52,0 00 EQUITY SHARES. 4. THAT THE GROUNDS OF APPEAL ARE WITHOUT PREJUDICE TO EACH OTHER. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND, A LTER OR FORGO ANY GROUND(S) OF APPEAL EITHER BEFORE OR AT THE TIME HE ARING OF THE APPEAL. 2. HOWEVER, LD. COUNSEL FOR THE ASSESSEE POINTED OU T THAT THE PRESENT APPEAL PERTAINING TO ASSESSMENT YEAR 2007-08 DESERV ES TO BE DISMISSED AS THE TAX EFFECT INVOLVED IN THE CASE IS BELOW RS.50 LACS. LD. COUNSEL FOR THE ASSESSEE HAS ALSO FILED COMPUTATION TAX EFFECT, TH E RELEVANT CONTENTS THEREOF ARE REPRODUCED AS UNDER:- COMPUTATION OF TAX RELIEF BY LD.CIT(APPEAL) VIDE OR DER DATED 22.03.2018 (RS.) ADDITION BY AO UNDER THE HEAD LONG TERM CAPITAL GA IN ON NO. OF SHARES72000*515.88 37143360 ADDITION SUSTAINED BY HONBLE CIT(APPEALS) ON NO. OF SHARES 72000*222.22 15999840 LONG TERM CAPITAL GAIN ADDITIONS DELETED BY LD.CIT( APPEALS) 21143520 TAX RELEIF BY HONBLE CIT(APPEALS) TAX @ 20% 4228704 SURCHARGE 10% 422871 4651575 CESS 2% 93032 TAX RELIEF INCLUDING SURCHARGE & CESS 4744607 3. LD. CIT DR COULD NOT CONTROVERT THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. 4. THE CBDT VIDE CIRCULAR NO.17/2019 DATED 08.08.20 19 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEALS BEFORE TH E TRIBUNAL TO RS.50 LACS. FURTHER, CBDT VIDE LETTER DATED 20.08.2019 HAS ALSO CLARIFIED THAT CIRCULAR ITA NO. 3904/DEL/2018 3 | P A GE NO.17/2019 WOULD BE APPLICABLE TO ALL PENDING APPEA LS. IN SUCH CIRCUMSTANCES, THE PRESENT APPEAL FILED BY THE REVE NUE IN CASE OF LOW TAX EFFECT IS NOT MAINTAINABLE. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RE-INSTITUTION OF APPEAL, IF THE REQUISITE MATERIAL IS BROUGHT TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11.07.2018. 6. IN CONCLUSION, BY APPLYING THE CBDT CIRCULAR DAT ED 08.08.2019 AND LETTER DATED 20.08.2019 (SUPRA), THE CAPTIONED APPE AL OF THE REVENUE IS DISMISSED AS WITHDRAWN/NOT PRESSED. 7. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ABOVE DECISION WAS PRONOUNCED ON CONCLUSION OF VIRT UAL HEARING IN THE PRESENCE OF BOTH THE PARTIES ON 06 TH SEPTEMBER, 2021. SD/- SD/- (G.S.PANNU) (KUL BHARAT) PRESIDENT JUDICIAL MEM BER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI