DCIT, New Delhi V. M/s. Vasudeva Jewellers Pvt. Ltd., New Delhi

ITA 4245/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7035 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 3
• Next Hearing Date: 20-06-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 04-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FARHAT KHAN
• Assessee Lawyers: ASHISH GOEL; ASHISH CHADHA
• Keywords: Business income; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC-3 NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER I.T.A .NO.-424 5/DEL/2014 (ASSESSMENT YEAR-20 05-06) DCIT, CENTRAL CIRCLE-11, NEW DELHI. (APPELLANT) VS VASUDEVA JEWELLERS PVT.LTD., 2653, VIJAY PLAZA BUILDING, KAROL BAGH, NEW DELHI. PAN-AABCV6233G (RESPONDENT) APPELLANT BY SH.FARHAT KHAN, SR.DR RESPONDENT BY SH. ASHISH CHADHA, CA & SH. ASHISH GOEL, CA ORDER PER DIVA SINGH, JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 09.05.2014 OF CIT(A)-XXXI, NEW D ELHI PERTAINING TO 2005-06 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS: 1. THE ORDER OF LD.CIT(A) IS NOT CORRECT IN LAW AND F ACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD.C IT(A) HAS ERRED IN DELETING THE ADDITION OF RS.25,63,024/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF GP RATE OF 0.2% OF TOTAL TURNOVER OF RS.1,28,15,12,253/- AS AGAINST A GP RATE OF 0.01% WHICH APPEARS TO BE AT L OWER SIDE, SINCE THE ASSESSEE WAS MAKING TOTAL SALES IN CASH AND NO DETA ILS OF PARTIES TO WHOM SALES WERE MADE FURNISHED AND THE PROFIT SHOWN BY THE ASSESSEE WAS NOT VERIFIABLE. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ANY/ALL TH E GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEA L. 2. LD.AR ADDRESSING THE FACT SUBMITTED THAT THE TAX EFFECT INVOLVED IS LESS THAN RS. 10 LACS ACCORDINGLY RELYING ON THE CBDT CIRCULA R NO.21/2015 DATED 10TH DECEMBER, 2015 IT WAS SUBMITTED THAT THE DEPARTMEN TAL APPEAL IS NOT MAINTAINABLE. ATTENTION WAS INVITED TO THE FOLLOWI NG CALCULATION STATING THAT THE TAX EFFECT OF THE PRESENT APPEAL IS ONLY RS.9,37,87 3/-:- DATE OF HEARING 21.06.2016 DATE OF PRONOUNCEMENT 12.07.2016 I.T.A .NO.-4245/DEL/2014 PAGE 2 OF 2 TOTAL ADDITION MADE BY THE AO RS.25,63,024/- RATE OF TAX 35% INCOME TAX ON ABOVE ADDITION RS.8,97,058/- SURCHARGE @ 2.5% RS.22,426/- EDUCATION CESS RS.18,389/- [2% OF (INCOME TAX + SURCHARGE)] RS.118,389/- TOTAL AMOUNT OF INCOME TAX RS.9,37,873/- 3. IN VIEW OF THE FACT THAT THE REVENUE MOVED AN AD JOURNMENT PETITION STATING THAT THE CIT DR IS NOT AVAILABLE, TIME WAS AFFORDED TO THE REVENUE. ON THE NEXT DATE ALSO, A SIMILAR ADJOURNMENT PETITION WAS MOVED ON BEHALF OF THE REVENUE. SINCE AN OPPORTUNITY HAD ALREADY BEEN GIVEN TO THE REVENUE TO MAKE ALTERNATE ARRANGEMENTS ACCORDINGLY AFTER REQUIRING THE LD.SR. DR TO VERIFY THE TAX EFFECT INVOLVED WHO STATED THAT THE CALCULATION WERE CORR ECT, THE APPLICATION MOVED WAS REJECTED. THE LD. AR RE-ITERATE THE SUBMISSION ADV ANCED. 4. I HAVE SEEN THE RECORD AND HEARD THE SUBMISSIONS , I FIND THAT THE CBDT VIDE CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT TO RS.10 LACS FOR FILING THE APPEAL BY THE DE PARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL. PARA 3 OF THE AFORESAID CIRCULA R HAS BEEN MADE APPLICABLE VIDE PARA 10 RETROSPECTIVELY. CONSIDERING THE SETTLED L EGAL PRECEDENT THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX ACT, 1961 ARE BINDING ON THE AUTHORITIES , THE DEPARTMENTAL APPEAL CONSIDERING THE MATERIAL AVAILABLE ON RECORD IS DIS MISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 12 TH JULY, 2016. SD/- (DIVA SINGH) JUDICIAL MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI