ITO, Faridabad V. Sh. Prakash Chand, Faridabad

ITA 4158/DEL/2015

• Counselvise Citation: 415820114 RSA 2015
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 26-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B-1: NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY, AM & SHRI SUDHANSHU SRIVASTAVA, JM SL.NO. ITA/IT(SS)A, CO NO. APPELLANT RESPONDENT ASSTT. YEAR/ PERIOID ASSESSEE BY 1. 4158/DEL/2015 ITO, WARD - 1(3), NEW CGO COMPLEX, NH-IV, FARIDABAD SHRI PRAKASH CHAND, 5/52, SECTOR-62, VILLAGE-SAHUPURA, FARIDABAD 2009 - 10 NONE 2. 5965/DEL/2014 DCIT, CIRCLE - 1 GHAZIABAD BLUDIP PAINTS AND CHEMICALS C-33/1, MEERUT ROAD, INDL. AREA, GHAZIABAD PAN:AAIFB3181B 2010 - 11 NONE 3. 3985/DEL/2014 ACIT, CIRCLE - II, BLOCK-B, NEW CGO COMPLEX, NH-IV, NIT FARIDABAD THE PALWAL CO - OPERATIVE SUGAR MILLS LTD. PALWAL PAN AAAT0569N 2009 - 10 NONE 4. 5022/DEL/2015 ACIT, CIRCLE - 55(1), ROOM NO. 219, D-BLOCK, 2 ND FLOOR, VIKAS BHAWAN, I.P. ESTATE, NEW DELHI-110 002 SONA UDYOG, B - 29, JHILMIL INDUSTRIAL ESTATE, DELHI -110 095 PAN: AAAFS7631K 2011 - 12 NONE 5. 4175/DEL - 2014 ITO, WARD - 23(1), NEW DELHI YASHIN MALIK, 217 - C, GROUND FLOOR, SHAHPUR JAT, NEW DELHI 110 049 PAN:ALAPM2446B 2008 - 09 NONE 6 . 4377/DEL/2014 ACIT, CIRCLE - 38(1), NEW DELHI ANJAL GARMENTS, A - 98, SECTOR-5, NOIDA 201301 PAN AAFFA1738G 2008 - 09 NONE 7 . 5123/DEL/2015 DCIT, CIRCLE - 4(1), GURGAON STANFORD HOSPITALITY INDIA PVT. LTD., 101- 106, PLOT NO. 14, 2010 - 11 NONE 2 LOCAL SHOPPING COMPLEX, KALKAJI, NEW DELHI 110 019 PAN AALCS0925N 8 . 4763/DEL/2014 ITO (TDS), AAYAKAR BHAWAN ROHTAK DEEN BANDHU CHHOTU RAM UNIVERSITY OF SCIENCE AND TECHNOLOGY, MURTHAL, DISTT. SONEPAT, HARYANA PAN RTKC02078G 2010 - 11 NONE 9 . 4766/DEL/2014 DCIT, CIRCLE - 14(1), NEW DELHI-110 002 PRAGATI POWER CORPORATION LTD., HIMADRI, RAJGHAT POWER HOUSE OFFICE COMPLEX, NEW DELHI-110 002 PAN AACCP8035F 2011 - 12 NONE 10 . 4919/DEL/2014 ITO , WARD - 8(4) NEW DELHI 110 002 KELTON DBYDX SOFTWARE (P) LTD. (EARLIER KNOWN AS M/S. SKAN DBYDX SOFTWARE PVT. LTD.)D-1/6, UPPER FLAT, HAUZ KHAS, NEW DELHI 110 008 PAN:AAJCS3094C 2010 - 11 NONE 11 . 5769/DEL/2014 DCIT, CENTRAL CIRCLE-16, NEW DELHI NRI INVESTMENT LTD., B-11, BANSAL TOWER, R.K. BHATTACHARYA ROAD, PATNA PAN : AABCN8207E 2005 - 06 NONE 12 . 4191/DEL/2014 ITO, WARD - 6(1), NEW DELHI MAHAJAN INDUSTRIES P. LTD., E-1, NDSE, PART-2, NEW DELHI-110 049 PAN AACMO878R 2011 - 12 NONE 13 . 4364/DEL/2014 ACIT, CIRCLE - 11, BLOCK-B, NEW CGO COMPLEX, NH-IV, NIT, FARIDABAD PRAVEEN JAIN, PROP. M/S. AIM FINANCIAL, B-390, NEHRU GROUND, FARIDABAD PAN: ABIPJ4056E 2006 - 07 NONE 14 . 4190/DEL/2014 ITO, WARD - 6(1), NEW DELHI M.R. COMPOUND & ALIED PRODUCTS P.LTD. 2001 - 02 NONE 3 1/33, GF.1, RAJINDER NAGAR, SIR GANGA RAM HOSPITAL MARG, NEW DELHI 110 060 PAN AAACM0403G 15 . 6009/DEL/2014 DCIT, CIRCLE 1 (1), NEW DELHI 110 002 ANSAL PROPERTIES & INFRASTRUCTURE LTD. 115, ANSAL BHAWAN, 16, K.G. MARG, NEW DELHI-110 001 PAN AAACA0006D 1989 - 90 NONE 16 . 5359/DEL/2015 ACIT, CIRCLE - 1, AAYAKAR BHAWAN, 13A-SUBHASH ROAD, DEHRADUN DEHRADUN CLUB LTD. 15, NEW SURVEY ROAD, DEHRADUN PAN: AAACD8246L 2009 - 10 NONE 17 . 4964/DEL/2015 DCIT, CIRCLE - 14(1), NEW DELHI K.L. STEELS PVT. LTD. Z-18, NARAINA, LOHA MANDI, NEW DELHI 110 028 2012 - 13 NONE 18. 4286/DEL/2014 DCIT, CIRCLE - 10(1), NEW DELHI DENSO THERMAL SYSTEMS PUNE PVT. LTD. (FORMERLY KNOWN AS M/S. DENSO FARIDABAD PVT. LTD.), 3 RD FLOOR, THE CAPITAL COURT, LEFT WING, OLOF PALME MARG, MUNIRKA, NEW DELHI PAN:AABCM1128M 2010 - 11 NONE 19. 5036/DEL/2015 ITO, WARD - 3(1), GOLGHAR, BARA BAZAR, MALLITAL, NAINITAL HIMALAYAN VACATION PVT. LTD., TALLITAL, NAINITAL 263002 PAN :AACCH5584P 2011 - 12 NONE 20. 4918/DEL/2014 ITO, WARD - 32 (2) TARA DEVI 2009 - 10 NONE PER SUDHANSHU SRIVASTAVA, JM ALL THESE APPEALS FILED BY THE REVENUE WERE FIXED B ECAUSE APPARENTLY, IN ALL THE CASES, THE TAX EFFECT IS BELOW RS. 10 LAKHS WHICH W OULD BE EVIDENT FROM THE DISPUTED ADDITIONS IN THE GROUNDS OF APPEAL RAISED BY THE RE VENUE. THE DISPUTED ADDITIONS BEFORE US ARE AS UNDER:- 4 S.NO. ITA NO. NAME OF THE PARTY DISPUTED ADDITION S BEFORE US 1. 4158/DEL/2015 ITO VS. SHRI PRAKASH CHAND RS. 16,34,713/ - 2. 5965/DEL/2014 DCIT VS. BLUDIP PAINTS AND CHEMICALS RS. 20,96,351/ - 3. 3985/DEL/2014 ACIT VS. THE PA WAL CO - OPERATIVE SUGAR MILLS LTD. RS. 24,13,808/ - 4. 5022/DEL/2015 ACIT VS. SONA UDYOG RS. 24,71,310/ - 5. 4175/DEL - 2014 ITO VS. YASHIN MALIK RS. 14,45,400/ - 6. 4377/DEL/2014 ACIT VS. ANJAL GARMENTS RS. 21,13,589/ - 7. 5123/DEL/2015 DCIT VS. STANFORD HOSPITALITY INDIA RS. 20,99,460/ - 8. 4763/DEL/2014 ITO VS. DEEN BANDHU CHHOTU RAM UNIVERSITY OF SCIENCE AND TECHNOLOGY RS. 7,66,359/ - 9. 4766/DEL/2014 DCIT VS. PRAGATI POWER CORPORATION LTD. RS. 27,00,000/ - 10. 4919/DEL/2014 ITO VS. KELTON DBYDX SOFTWARE (P) LTD RS. 15,08,063/ - 11. 5769/DEL/2014 DCIT VS. NRI INVESTMENT LTD. RS. 27,47,526/ - 12. 4191/DEL/2014 ITO VS. MAHAJAN INDUSTRIES P. LTD RS. 21,66,423/ - 13. 4364/DEL/2014 ACIT VS. PRAVEEN JAIN RS. 17,12,986/ - 14. 4190/DEL/2014 ITO VS. M.R. COMPOUND & ALIED PRODUCTS P. LTD. RS. 28,11,487/ - 15. 6009/DEL/2014 DCIT VS. ANSAL PROPERTIES & INFRASTRUCTURE LTD. RS. 7,59,000/ - 16. 5359/DEL/2015 ACIT VS. DEHRADUN CLUB LTD. RS. 8,18,000/ - 17. 4964/DEL/2015 DCIT VS. K.L. STEELS PVT. LTD. RS. 16,32,184/ - 18. 4286/DEL/2014 DCIT VS. DENSO THERMAL SYSTEMS PUNE PVT. LTD. RS. 24,08,091/ - 19. 5036/DEL/2015 ITO VS. HIMALAYAN VACATION PVT. LTD. RS. 4,71,490/ - 20. 4918/DEL/2014 ITO VS. TARA DEVI RS. 16,46,793/ - 5 2. THE CBDT IN ITS CIRCULAR NO. 21/2015 DATED 1 0 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF THE DEPARTMENTAL A PPEALS TO THE ITAT AT RS. 10 LAKHS WHICH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS 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 MATTER 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. 3. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETAR Y LIMITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFERENCE, WE REPRODUCE PARAGRAPH 10 BELOW :- 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 INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY APP LICABLE TO THE APPEALS UNDER CONSIDERATION BEFORE US. 5. LEARNED CIT-DR SHRI RAVI JAIN WHO APPEARED AT THE TIME OF HEARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FOR THE R EPORT FROM THE ASSESSING OFFICER 6 AS WELL AS INSTRUCTIONS FROM ADMINISTRATIVE CIT FOR WITHDRAWING THESE APPEALS BECAUSE THE APPEALS WERE FILED WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED CIT-DR FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF T HE SAID CIRCULAR, IT HAS BEEN CLARIFIED BY THE CBDT THAT WITHDRAWAL OF THESE APPE ALS BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRE CEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THESE APPEA LS AND, THEREFORE, IF IN THE SUBSEQUENT YEARS SIMILAR ISSUE ARISES BEFORE THE IT AT WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRESCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 6. AFTER CONSIDERING THE SUBMISSIONS OF LEARNED DR, TH E FACTS OF ALL THE CASES AND THE CIRCULAR OF THE CBDT, WE ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEALS AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE APPARENTLY, THE TAX EFFECT INVOLVED IN THESE APPEAL S OF THE REVENUE IS BELOW RS. 10 LAKHS. HOWEVER, WE ADD HERE THAT IF ON RECEIPT OF O RDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS. 10 LAKHS OR, IN AN Y OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE, HE WILL BE AT LIBERTY TO FILE A MISCELL ANEOUS APPLICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT-DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLV ED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE I SSUE INVOLVED IN THESE APPEALS BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOS E YEARS IS MORE THAN RS. 10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEALS IN THE LIGHT OF THE CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. 7 7. IN THE RESULT, ALL THE ABOVE MENTIONED APPEALS O F THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23/12/2015. SD/- SD/- (J. SUDHAKAR REDDY) (SUDH ANSHU SRIVASTAVA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 23 RD DECEMBER, 2015. VEENA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI. 8 DATE 1. DRAFT DICTATED ON 22.12.2015 2. DRAFT PLACED BEFORE THE AUTHOR 22.12.2015 3. DRAFT PLACED BEFORE THE OTHER MEMBER 4. APPROVED DRAFT COMES TO THE SR.PS/PS 5. FILE SENT TO THE BENCH CLERK 6. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 7. DATE ON WHICH FILE GOES TO THE AR 8. DATE OF DISPATCH OF ORDER.