ITO, WARD- 25(3), NEW DELHI V. TIMBMET DOORS SOLUTIONS PVT. LTD., NEW DELHI

ITA 4777/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6708 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 26-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKASH DUBEY
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

ITA NO.- 4777/DEL/2017 TIMBMET DOORS SOLUTIONS PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: G: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 4777/DEL/2017 ( ASSESSMENT YEAR: 2012-13) ITO, WARD-25(3), NEW DELHI. VS. TIMBMET DOORS SOLUTIONS PVT. LTD., NEW DELHI. PAN NO: AACCT6071D APPELLANT RESPONDENT REVENUE BY : SHRI PRAKASH DUBEY, SR. DR ASSESSEE BY : SHRI RAJESH MAHNA, ADV. PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- 15, DELHI, [LD. CIT(A), FOR SHORT], DATED 27.03.2017 FOR ASSESSMENT YEAR 2012-13. GROUNDS TAKEN IN THIS APPEAL OF REVENUE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN HOLDING THAT THE TOTAL TURNOVER IS ALSO REQUIRED TO BE REDUCED BY THE AMOUNTS OF CLEARING AND FORWARDING CHARGES, FREIGHT OUTWARD AND MARINE INSURANCE AGGREGATING TO RS. 1,37,88,595/- AS HAS BEEN DONE IN THE CASE OF ARRIVING AT EXPORT TURNOVER. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN HOLDING THAT FUMIGATION CHARGES OF RS. 1,73,094/-; TECHNICAL & CONSULTANCY CHARGES OF RS. 3,66,750/- & PRODUCT CERTIFICATION FEE OF RS. 4,03,547/- WERE MEANT FOR ENTIRE PRODUCTION FACILITY & NOT EXCLUSIVELY FOR THE PRODUCTION RELATING TO EXPORTS COMPLETELY IGNORING THE FACT ITA NO.- 4777/DEL/2017 TIMBMET DOORS SOLUTIONS PVT. LTD. PAGE 2 OF 4 THAT THE MAJOR CONTRIBUTION TO THE KITTY OF ASSESSEE WAS FROM EXPORTS AS EXPORT CONSTITUTED 94% OF THE TOTAL RECEIPTS OF ASSESSEE. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN HOLDING THAT FOREIGN EXCHANGE GAIN REALIZED AMOUNTING TO RS. 86,28,311/- AND UNREALIZED GAIN ON RESTATEMENT OF FOREX MONETARY ASSETS OF RS. 39,34,834/- WERE TO BE CONSIDERED BEFORE ARRIVING AT NET BUSINESS PROFITS FOR DEDUCTION U/S 1OAA. 4. THE APPELLANT CRAVES FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY OF THE GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. (B) AT THE OUTSET, IT WAS BROUGHT TO OUR NOTICE AT THE TIME OF HEARING, BY LEARNED COUNSEL FOR ASSESSEE, THAT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,000/-. 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 FOR FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) HAS 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 CLARIFIED BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. IN VIEW OF THE FOREGOING, IT WAS CONTENDED BY LD. COUNSEL FOR ASSESSEE, THAT THIS APPEAL IS NOT MAINTAINABLE. LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE [LD. SR. DR, FOR SHORT) AGREED WITH THIS CONTENTION OF THE LD. COUNSEL FOR ASSESSEE, AND DID NOT PRESS THE APPEAL. THEREFORE, THIS APPEAL IS DISMISSED BEING NOT PRESSED; AND ALSO BEING NOT MAINTAINABLE HAVING REGARD TO AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATION DATED 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 ITA NO.- 4777/DEL/2017 TIMBMET DOORS SOLUTIONS PVT. LTD. PAGE 3 OF 4 RECALL OF THIS ORDER AND, FOR RESTORATION OF THIS APPEAL IF IT IS FOUND THAT APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS 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 IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES, AFTER CONCLUSION OF HEARING ON 12/04/2021. NOW, THIS WRITTEN ORDER IS SIGNED TODAY ON 13/04/21. SD/- SD/- (SUDHANSHU SRIVASTAVA) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 13/04/21 (POOJA) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 4777/DEL/2017 TIMBMET DOORS SOLUTIONS 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