DCIT,Circle-3(2), New Delhi V. ASF Infrastructure Pvt. Ltd., New Delhi

ITA 4555/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3664 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 10-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Rule 8D
• Section: 14A; 268A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 4555/DEL/2017 A.Y. : 2014-15 DCIT, CIRCLE 3(2), NEW DELHI R.NO. 380B, C.R. BUILDING, NEW DELHI 2 VS. M/S ASF INFRASTRUCTURE PRIVATE LIMITED, 11, BABAR LANE, BENGALI MARKET, NEW DELHI 110 001 (PAN: AAFCA4680G) (APPELLANT) (RESPONDENT) ORDER PER H.S. SIDHU, JM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AG AINST THE IMPUGNED ORDER PASSED BY THE LD. CIT(A)-I, NEW DELHI IN RELATION TO ASSESSMENT YEAR 2014-15 ON THE FOLLOWING GROUNDS:- 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELETING ADDITION OF RS. 60,87,646/- MADE BY THE AO ON ACCOUNT OF DISALLOWANCE U/S. 14A OF INCOME TAX ACT, 1961 R.W. RULE 8D. DEPARTMENT BY MS. RAKHI VIMAL, SR. DR. ASSESSEE BY SH. VED JAIN, ADV. & SH. ASHISH GOEL, CA 2 2. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELETING ADDITION OF RS. 1,34,815/- MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF INTEREST ON SERVICE TAX U/S. 40(A)(II) OF INCOME TAX ACT, 1961. 3. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME OR DURING THE HEARING OF THIS APPEAL. 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESS EE HAS FILED A CHART OF TAX EFFECT CALCULATION AND STATED THAT THE TOTAL TAX PAYABLE IN THIS DEPARTMENTAL APPEAL IS RS. 21,15,014/- WHICH SHOWS THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE P RESCRIBED LIMIT OF RS.50 LAKHS, HENCE, HE REQUESTED THAT THIS APPEAL OF THE REVENUE MAY BE DISMISSED IN VIEW OF LATEST CBDT CIRCULAR NO . 17/2019 DATED 08.08.2019 WHEREIN THE MONETARY LIMIT FOR FIL ING THE APPEAL BEFORE THE APPELLATE TRIBUNAL BY THE DEPARTMENT HAVE BEEN ENHANCED TO RS.50 LAKHS. 3. IT IS NOTED THAT VIDE CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 ISSUED BY CBDT UNDER SECTION 268A OF THE I.T. ACT, I T HAS BEEN DIRECTED THAT THE DEPARTMENT SHALL NOT FILE APPEAL BEF ORE THE TRIBUNAL IN CASE WHERE THE TAX EFFECT DOES NOT EXCEE D THE MONETARY 3 LIMIT OF RS.20 LAKHS. IT IS ALSO DIRECTED THAT THIS IN STRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE F ILED HENCEFORTH IN THE TRIBUNAL. PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED BY THE DEPARTMENT. R ECENTLY, THE CBDT VIDE CIRCULAR NO.17/2019 DATED 08.08.2019 AM ENDED ITS EARLIER CIRCULAR NO.3/2018 (SUPRA) WHEREBY IT HAS BE EN DIRECTED THAT MONETARY LIMIT FOR FILING THE DEPARTMENTAL APPEAL IN INCOME TAX CASES MAY BE ENHANCED FURTHER THROUGH THIS AMENDMENT IN PARA-3 OF THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE APPELLATE TRIBUNAL H AVE BEEN ENHANCED TO RS.50 LAKHS. SINCE CIRCULAR NO.17/2019 DATED 08.08.2019 HAVE BEEN ISSUED TO AMEND ITS EARLIER CIR CULAR NO.3/2018 DATED 11.7.2018 (SUPRA), THEREFORE, ALL THE CONDITIONS OF EARLIER CIRCULAR NO.3/2018 SHALL APPLY ACCORDINGLY. THIS VIEW IS SUPPORTED BY THE ITAT, AHEMEDABAD A BENCH DECISION DATED 14 TH AUGUST, 2019 PASSED IN THE CASE OF INCOME TAX OFFICE R, WARD 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS P ASSED IN ITA NO. 1398/AHD/2004 (AY 1998-99). 4. LD. SR. DR DID NOT CONTROVERT THE AFORESAID PROPOS ITION. 5. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES AS EXPLAINED ABOVE AND IN VIEW OF THE AFORESAID CBDT CIRCULARS A S WELL AS 4 DECISION DATED 14 TH AUGUST, 2019 OF THE ITAT, AHEMEDABAD A BENCH PASSED IN THE CASE OF INCOME TAX OFFICER, WAR D 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS P ASSED IN ITA NO. 1398/AHD/2004 (AY 1998-99), THE APPEAL OF THE DEPARTMENT IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED. THE DECISION IS PRONOUNCED ON 04.03.2020. SD/- SD/- (N.K. BILLAIYA) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 04.03.2020 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI