ACIT, New Delhi V. M/s. D- Art Furniture System Pvt. Ltd., New Delhi

ITA 4634/DEL/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3960 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 31-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Tax effect
• Section: 153A; 254(2)

Judgement Text

ITA NO.- 4634/DEL/2016 M/S D-ART FURNITURE SYSTEMS PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: B: NEW DELHI) BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBE R AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 4634/DEL/2016 ( ASSESSMENT YEAR: 2005-06) ACIT, CENTRAL CIRCLE-17, ARA CENTRE, E-2, JHANDEWALAN, NEW DELHI. VS. M/S D - ART FURNITURE SYSTEM PVT. LTD., 1-107A, KIRTI NAGAR, NEW DELHI-110015. PAN NO: AAACE3882D APPELLANT RESPONDENT REVENUE BY : MS. NIDHI SRIVASTAVA, CIT (DR) ASSESSEE BY : SHRI AMIT CHOPRA, CA PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-34, DELHI, [LD. CIT(A), FOR SHORT], DATED 27.06.2016 FOR ASSESSMENT YEAR 2005-06. GROUNDS TAKEN IN THIS APP EAL OF REVENUE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) HAS ERRED IN LAW IN HOLDING THAT THE ADDITIONS MADE BY THE AO WERE BEYOND THE SCOPE OF SECTION 153A, WHILE UPHOLDING THAT THE INVOCATION OF SECTION 153A WAS VALID. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN LAW IN HOLDING THAT THE AO COULD NOT HAVE PROCEEDED TO FRAME ASSESSMENT U/S 153A OF THE ACT AS NO INCRIMINATING DOCUMENTS /ASSETS ITA NO.- 4634/DEL/2016 M/S D-ART FURNITURE SYSTEMS PVT. LTD. PAGE 2 OF 4 WERE FOUND DURING THE SEARCH WITHOUT APPRECIATING T HAT THE PROVISION OF SECTION 153A OF THE ACT DOES NOT STIPULATE ANY SUCH CONDITIONALITY. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING ALL THE ADDITIONS MADE BY THE AO ON THE TECHNICAL GROUND WITHOUT ADJUDICATING THE INDIVIDUAL ADDITION S ON MERIT. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A), BEING A FACT FINDING AUTHORITY, HAS ERRED IN FACTS AND IN L AW IN ALLOWING THE APPEAL OF THE ASSESSEE WITHOUT INDEPENDENTLY VERIFYING THE FACTS OF THE CASE, AS MANDATED BY THE HONBLE DELHI HIGH COURT IN THE CAS E OF CIT VS JANSAMPARK ADVERTISING (375 ITR 373) 5. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ANY/ AL L THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEA L. (B) AT THE OUTSET, LEARNED COMMISSIONER OF INCOME TAX (DEPARTMENTAL REPRESENTATIVE) [LD. CIT (DR), FOR SHORT] BROUGHT TO OUR NOTICE, AT THE TIME OF HEARING THAT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,0 00/-. BOTH SIDES, [REPRESENTATIVES OF REVENUE AND THE ASSESSEE] WERE IN AGREEMENT, AT THE TIME OF HEARING BEFORE US, THAT THE TAX EFFECT IN THE PRESENT APPEAL IS BELOW RS. 5 0,00,000/-. VIDE RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIMIT OF TAX EFFECT OF FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) H AS BEEN ENHANCED TO RS. 50,00,000/-. IN A SUBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F.NO. 279/MISC/M- 93/2018-ITJ, DATED 20/08/2019, IT HAS BEEN CLARIFIE D BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PENDING AP PEALS IN ITAT. HAVING REGARD TO THE AFORESAID, THE LD. CIT(DR) FOR REVENUE DID NOT PRES S THE APPEAL. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE ALSO SUB MITTED THAT THE APPEAL WAS NOT MAINTAINABLE IN VIEW OF THE AFORESAID CBDT CIRCULAR DATED 08.08.2019 AND 11.07.2018; AND AFORESAID CLARIFICATION DATED 20.08.2019 ISSUED BY CBDT. THEREFORE, THIS APPEAL IS ITA NO.- 4634/DEL/2016 M/S D-ART FURNITURE SYSTEMS PVT. LTD. PAGE 3 OF 4 DISMISSED BEING NOT PRESSED AND ALSO BEING NOT MAIN TAINABLE HAVING REGARD TO AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WIT H AFORESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATION DAT ED 20/08/2019. (C) BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) OF INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THIS A PPEAL IF IT IS FOUND THAT APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULA RS DATED 08.08.2019 AND 11.07.2018. (D) IN THE RESULT, THIS APPEAL BY REVENUE IS DISMISSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HE ARING ON THE DATE OF HEARING. NOW, THIS WRITTEN ORDER IS PRONOUNCED IN OPEN COURT ON 2 8/11/19. SD/- SD/- (SUDHANSHU SRIVASTAVA) (ANADEE N ATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 28/11/19 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 4634/DEL/2016 M/S D-ART FURNITURE SYSTEMS PVT. LTD. PAGE 4 OF 4 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER