ACIT Circle-27(1), New Delhi V. Uttranchal Engineering Pvt Ltd, New Delhi

ITA 441/DEL/2020

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals)-10, New Delhi, which pertained to the assessment year 2012-13. The Revenue challenged the deletion of an addition of Rs. 1,21,47,484 on account of unexplained share capital/premium by the CIT(A). However, the Tribunal found that the tax effect involved was less than Rs. 50 lakhs, thus not maintainable under the revised monetary limit for departmental appeals as per CBDT Circular No. 17/2019. The Tribunal dismissed the appeal, noting that the Revenue could refile if the tax effect changes or if it falls under any exceptions of the Circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 108621 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 28-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 23-01-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect; Condonation of delay

Judgement Text

1 ITA No. 441/Del/2020 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H ”: NEW DELHI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA No. 441/DEL/2020 Assessment Year: 2012-13 ACIT, Circle-27(1), New Delhi. Vs Uttranchal Engineering Pvt. Ltd., 612-614, DLF Tower Block, Shivaji Marg, Moti Nagar, New Delhi. PAN- AAACU7490H APPELLANT RESPONDENT Assessee represented by None Department represented by Ms. Sapna Bhatia, CIT(DR) Date of hearing 29.08.2023 Date of pronouncement 29.08.2023 O R D E R PER KUL BHARAT, JM: This appeal, by the Revenue, is directed against the order of the learned Commissioner of Income-tax (Appeals)-10, New Delhi, dated 23.09.2019, pertaining to the assessment year 2012-13. 2 ITA No. 441/Del/2020 2. At the time of hearing no one attended the hearing on behalf of the assessee. Notices of hearing have been returned by the postal authorities. The assessee has not provided changed address, if any, to the Registry. Therefore, the appeal was taken up for hearing ex parte to the assessee. 3. The Revenue has filed an application seeking condonation of delay of 21 days in filing the present appeal. Learned DR reiterate d the submissions as made in the application. For the reasons stated in the application the small delay of 21 days is hereby condoned and the appeal is taken up for hearing. 4. The only effective ground of appeal, reads as under: “Whether on facts and in the circumstances of the case the Ld. CIT(A) is justified in deleting the addition of Rs. 1,21,47,484/- on account of unexplained share capital/premium, when the alleged investor companies do not have creditworthiness/profit generating apparatus.” 5. From the above ground it is clear that Revenue is challenging the deletion of addition of Rs. 1,21,47,484/-. However, in form no. 36, the tax effect is stated to be Rs. 98,14,612/-. On perusal of the assessment order it is noticed that the assessing authority had made addition of Rs. 3,02,50,000/- u/s 68. Learned CIT(A) allowed the appeal of the assessee, thereby he deleted the entire addition. As per the assessment record 3 ITA No. 441/Del/2020 there were two additions of Rs. 2,72,50,000/- made u/s 68 in respect of share capital and Rs. 30,00,000/- u/s 68 in respect of unexplained unsecured loan. However, in the ground of appeal the Revenue has assailed addition of Rs. 1,21,47,484/- made on account of unexplained share capital/premium. So, the challenge before us is limited to the extent of deletion of addition of Rs. 1,21,47,484/-. The learned DR could not refute that tax effect of this amount would be lower than Rs. 50,00,000/- and therefore, in view of CBDT Circular No. 17/2019 dated 8 th August, 2019, revising the monetary limit for filing of the departmental appeals to the ITAT at Rs. 50 lakhs, the present appeal of the Revenue is not maintainable. 6. In view of the above factual position, the tax effect involved in the appeal being less than Rs. 50 lakhs, we deem it proper to dismiss the appeal of the Revenue in the light of the CBDT Circular No. 17/2019 dated 8 th August, 2019, as not maintainable. However, if on a later date, the Revenue finds that the tax effect in dispute in the aforesaid appeal is more than the limit prescribed or it is protected by any of the exceptions provided in the CBDT Circular, it shall be at liberty to approach the Tribunal for recall of the order and reinstitution of the appeal for adjudication on merits. The Tribunal would consider such application, as per the extant law. 4 ITA No. 441/Del/2020 7. In view of the aforesaid discussion, the Revenue’s appeal stands dismissed. Order pronounced in open court on 29.08.2023. Sd/- Sd/- (NARENDRA KUMAR BILLAIYA) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Draft dictated 29.08.2023 Draft placed before author 29.08.2023 Approved Draft comes to the Sr. PS/PS Order signed and pronounced on File comes to P.S. File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk Date of dispatch of Order Date of uploading on the website 5 ITA No. 441/Del/2020