ITO, New Delhi V. M/s. B.M. International Pvt. Ltd., New Delhi

ITA 462/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4313 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-04-2011
• Assessment Year: 1995-1996
• Appeal Filed On: 02-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MONGA
• Keywords: Tax effect
• Section: 43B; 143(3)

Judgement Text

ITA NO. 462/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA, VICE PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER I.T.A. NO. 462/DEL/2010 A.Y. : 1995-96 INCOME TAX OFFICER, WARD 2(3), ROOM NO. 389A, C.R. BUILDING, I.P. ESTATE, NEW DELHI VS. M/S B.M. INTERNATIONAL PVT. LTD., D-194, 8C/1, WEA, KAROL BAGH, NEW DELHI (PAN/GIR NO. : AABCB 0035A) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. DINESH GUPTA, CA DEPARTMENT BY : SH. A.K. MONGA, SR. D.R. ORDER ORDER ORDER ORDER PER PER PER PER RAJPAL YADAV : J RAJPAL YADAV : J RAJPAL YADAV : J RAJPAL YADAV : JM MM M THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 27.11.200 9 PASSED FOR ASSESSMENT YEAR 1995-96. 2. THE GROUNDS OF APPEAL TAKEN BY THE REVENUE ARE NOT IN CONSONANCE WITH RULE 8 OF ITAT RULES, THEY ARE DESC RIPTIVE AND ARGUMENTATIVE IN NATURE. IN BRIEF THE GRIEVANCE O F REVENUE IS THAT LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN D ELETING PENALTY LEVIED U/S 271(1)(C) OF THE IT ACT, 1961. 3. WITH THE ASSISTANCE OF THE LD. REPRESENTATIVES, WE HAVE GONE THROUGH THE RECORDS CAREFULLY. IT EMERGES OUT FR OM THE RECORD THAT ITA NO. 462/DEL/2010 2 ASSESSEE HAS FILED ITS RETURN OF INCOME ON 13.11.19 95 DECLARING NIL INCOME. AN ASSESSMENT U/S 143(3) WAS FRAMED ON 31 .3.1997 WHEREBY ITS INCOME WAS DETERMINED AT ` 5,09,100/-. THE ASSE SSING OFFICER HAS INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) FOR THE FOLLOWING MAJOR ADDITIONS:- (I) DISALLOWANCE ON ACCOUNT OF PRIOR PERIOD EXPENSES : ` 66,868 (II) EPF U/S 43B : ` 12,020 (III) FPF U/S 43B : ` 6,515 (IV) ENTERTAINMENT EXPENSE : ` 86,796 (V) ADDITION ON ACCOUNT OF EXCESS DEDUCTION CLAIMED : ` 1,08,026 U/S 80-O. 3.1 THE PENALTY ON THE ABOVE ADDITIONS FOR THE TAX TO BE EVADED @ 100% WAS COMPUTED BY THE ASSESSING OFFICER AT ` 2,21,676/-. 4. ON APPEAL, LD. COMMISSIONER OF INCOME TAX (APPEALS ) HAS DELETED THE PENALTY. 5. THE CBDT HAS ISSUED REVISED INSTRUCTIONS BEARING NO. 3/2011. THESE INSTRUCTIONS HAVE BEEN ISSUED ON 09.2.2011. IN THESE INSTRUCTIONS IT HAS BEEN PROVIDED THAT THE REVENUE SHALL NOT FILE APPEAL AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS), IF THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF ` 3 LAKHS. AT SERIAL NO. 8, THE BOARD HAS PROVIDED CERTAIN EXCEP TIONS. THE PRESENT APPEAL DOES NOT FALL UNDER THE EXCEPTION. THE HO NBLE DELHI HIGH COURT IN THE CASE OF C.I.T. V DELHI RACE CLUB LTD. DECIDED ON 11.3.2011 HAS OBSERVED THAT THESE INSTRUCTIONS WILL BE APPLI CABLE ON PENDING ITA NO. 462/DEL/2010 3 APPEALS. HONBLE DELHI HIGH COURT IN THIS REGARD MADE A REFERENCE TO THE CASE OF C.I.T. VS P.S. JAIN WHEREIN THE HONBL E HIGH COURT HAS FOLLOWED THE DECISION OF THE HONBLE MUMBAI HIGH COU RT IN THE CASE OF PITHWA ENGINEERING 276 ITR 519 MUMBAI AS WELL AS THE DECISION OF THE HONBLE M.P. HIGH COURT IN THE CASE OF ASHOK PATEL R EPORTED IN 317 ITR 386. 6. IN VIEW OF THE HONBLE DELHI HIGH COURT, THESE I NSTRUCTIONS ARE APPLICABLE ON THE PENDING APPEALS. THE TAX EFFE CT IN THE PRESENT APPEAL IS LES THAN ` 3 LAKHS. HENCE, IT IS NOT MAI NTAINABLE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/4/2011 UPO N CONCLUSION OF HEARING. SD/- SD/- [ [[ [G.E. VEERABHADRAPPA G.E. VEERABHADRAPPA G.E. VEERABHADRAPPA G.E. VEERABHADRAPPA ) )) ) ( (( (RAJPAL YADAV) RAJPAL YADAV) RAJPAL YADAV) RAJPAL YADAV) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATE 11/04/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES