DCIT, New Delhi V. M/s. Utkarsh Realtech Pvt. Ltd., New Delhi

ITA 4797/DEL/2015

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6973 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 22-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKHI BIM AL
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) BEFORE SHRI SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT ME MBER ITA NO:- 4797/DEL/2015 (ASSESSMENT YEAR: 2011-12) DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-32, NEW DELHI VS M/S UTKARSH REALTECH PVT. LTD. M-11,MIDDLE CIRCLE, CONNAUGHT CIRCUS, NEW DELHI PAN-AABCU0945J APPELLANT RESPONDENT APPELLANT BY MS. RAKHI BIMAL, SR. DR RESPONDENT BY NONE ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAI NST THE ORDER DATED 27.03.2015 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- XXX, NEW DELHI [IN SHORT LD. CIT(A)] PERTAINING T O ASSESSMENT YEAR 2011-12. IN THIS APPEAL, THE TAX EFFECT IS LESS TH AN THE MONETARY LIMIT FIXED BY THE CENTRAL BOARD OF DIRECT TAXES (IN SHOR T CBDT) IN ITS CIRCULAR NO.17/2009 DATED 08.08.2019. THE REVENUE H AS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDING THA T THE INTEREST IS ITA NO: - 4797/DEL/2015 PAGE | 2 PAID AND RECEIVED ONLY ON THE EXTENSION OF PDCS AND NOT FOR THE ENTIRE PERIOD OF PDCS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN GIVING DIRECTIONS THAT INTEREST ON PDCS IS TO BE CALCULATED AFTER SIX MONTHS OF ISSUE OF PDCS I.E. DATE OF SALE. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN NOT CONSIDERING THE REL EVANT SEIZED MATERIAL WHILE DECIDING THE ISSUE OF INTEREST ON PD CS. 4. THE ORDER OF THE CIT(A) IS ERRONEOUS AND IS NOT TENABLE ON FACTS AND IN LAW. [B]. AT THE OUTSET, IT WAS BROUGHT TO THE NOTICE BY US, AT THE TIME OF HEARING THAT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,000./-. VIDE RECENT CBDT CIRCULAR NO.17/2019 DATED 08.08.2019 RE AD WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.2018, MINI MUM THRESHOLD LIMIT OF TAX EFFECT OF FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL ('ITAT', FOR SHORT) HAS BEEN ENHANCED TO R S. 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 APPEALS IN ITAT. THEREFORE, IN VIEW OF THE FOREGOING, WE AR E OF THE VIEW THAT THIS APPEAL FILED BY REVENUE IS NOT MAINTAINABLE. ACCORD INGLY THIS APPEAL IS DISMISSED BEING NOT MAINTAINABLE, HAVING REGARD TO AFORESAID CBDT ITA NO: - 4797/DEL/2015 PAGE | 3 CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH AFO RESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CL ARIFICATION DATED 20/08/2019. [C]. BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL B E AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RES TORATION OF THE APPEAL IF IT IS FOUND THAT THIS APPEAL OF RE VENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07.2018. [D]. IN THE RESULT, THE APPEAL BY REVENUE IS DISMI SSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AFTER CONCL USION OF HEARING ON THE DATE OF HEARING. NOW, THIS WRITTEN ORDER IS PRO NOUNCED IN OPEN COURT ON 22.10.2019. SD/- SD/- (SUSHMA CHOWLA) (ANADEE NATH MI SSHRA) JUDICIAL MEMBER ACCOUNTA NT MEMBER DATED: 22.10.2019 SH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI