ACIT, New Delhi V. M/s. Grand Venezia Commercial Towers Pvt. Ltd., New Delhi

ITA 484/DEL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2019 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 30-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Keywords: Audit objection; Retrospective amendment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES C , NEW DELHI BEFORE SHRI N.K.SAINI , AM & SMT. BEENA A PILLAI, JM ITA/ CO NO. APPELLANT RESPONDENT A.Y. ASSESSEE BY 1612 /DEL/2018 ITO(E), WARD - 1(2) NEW DELHI. INSTITUTE OF ROAD TRAFFIC EDUCATION B 128, DDA SHEDS, OKHLA INDUSTRIAL AREA PHASE I NEW DELHI 110 020 PAN: AA AT12776D 2014 - 15 SH. LAKSHYA GOYAL, ADV. SH. TARUN KUMAR, ADV. 6906 /DEL/2017 A CIT, CIRCLE 1 0 ( 2 ) NEW DELHI INNODATA INDIA P LTD. 708, SURYA KIRAN BUILDING 19 KG MARG C.P. NEW DELHI 110 001 PAN:AAACI2425G 201 3 - 14 NONE 6797 /DEL/2017 DCIT, EXEMPTION CIRCLE GHAZIABAD HARIDWAR DEVELOPMENT AUTHORITY MAYAPUR HARIDWAR UTTARAKHAND PAN:AAALH0055Q 2006 - 07 NONE 813 /DEL/201 8 ACIT, C.C.15 NEW DELHI GOLDSMITH REALTECH P LTD. G - 22/351, SECTOR 7 ROHINI NEW DELHI PAN: AA DCG9357Q 201 3 - 14 NONE C.O. 83/DEL/2018 (IN ITA 813/DEL/18) GOLDSMITH REALTECH P LTD. NEW DELHI ACIT, CENTRAL CIRCLE 15 NEW DELHI 2013 - 14 NONE 1246 /DEL/2017 ACIT, CIRCLE 50 (1) NEW DELHI H & H COOPERATIVE BUYING HOUSE F - 5/2, VASANT VIHAR NEW DELHI 57 PAN:AAAF H 5339K 20 04 - 05 NONE 1516 /DEL/2017 DCIT, CIRCLE 1 1 (1) NEW DELHI INNUS INFRASTRUCTURE P LTD. M 62 & 63, 1 ST FLOOR 201 2 - 13 NONE 2 CANNAUGHT PLACE NEW DELHI 19 PAN: AACCI1776N 6599 /DEL/2017 ACIT, ROHTAK CIRCLE ROHTAK SH. HARISH KUMAR GHAI 167 - R, MODEL TOWN ROHTAK HARYANA PAN:ANKP9888K 201 3 - 14 SH. SOHAN PETWAL, ADV. 3273 /DEL/201 6 D CIT, CIRCLE 2 ( 1 ) NEW DELHI ALL GROW FINANCE & INVESTMENT P.LTD. 202, 1 ST FLOOR, OKHLA INDUSTRIAL ESTATE PHASE III NEW DELHI 110 020 PAN: AA ACA4941P 201 1 - 12 NONE 5731/DEL/2017 DCIT, CIRCLE 10(1) NEW DELHI GE HEALTHCARE P LTD. (NOW KNOWN AS WIPRO GE HEALTHCARE P LTD.) 4, KADUGODI INDUSTRIAL AREA BANGALORE PAN:AAECA4311P 2011 - 12 NONE 4940/DEL/2017 ACIT, CENTRAL CIRCLE 29 NEW DELHI GEN X COMMODITIES P LTD. FA - 45, LOWER GROUND FLOOR SHIVAJI ENCLAVE NEW DELHI PAN:AAACA2303H 2014 - 15 SH. RISHAB JAIN, CA 6179/DEL/2016 ITO(E), WARD 1(2) NEW DELHI GURUDWARA BABA JORAWAR SINGH JI BABA FATEH SINGH JI D - 123, FATEH NAGAR NEW DELHI 110 018 PAN:AAAAG3770C 2010 - 11 NONE 1652/DEL/2018 ITO(E), WARD 1(2) NEW DELHI INSTITUTE OF ROAD TRAFFIC EDUCATION B - 128, DDA SHEDS, OKHLA INDUSTRIAL AREA PHASE I NEW DELHI 110 020 PAN:AAATI2776D 2013 - 14 SH. LAKSHYA GOYAL, ADV. 3 3280/DEL/2016 JCIT (OSD) C.C. 31 NEW DELHI SHIVRAJ PROPERTIES PLOT J - 1, BLOCK B - 1 MOHAN INDUSTRIAL AREA MATHURA ROAD NEW DELHI 110 044 PAN:AAJCS0741E 2008 - 09 NONE 2868/DEL/2018 DCIT, C.C. 1 GURGAON SH. JETH MAL MEHTA J - 398, NEW RAJINDER NAGAR INDIAN OVERSEAS BANK CENTRAL DELHI NEW DELHI PAN:AETPM7817A 2009 - 10 SH. VAIBHAV BAJAJ, CA & SH. RAJESH JAIN, CA 4186/DEL/2018 DCIT, CIRCLE 11(2) NEW DELHI HITACHI METGLAS (INDIA) P LTD. 1C, VANDANA BUILDING 11, TOLSTOY MARG, C.P. NEW DELHI 110 001 PAN: AABCH9302G 2014 - 15 SH. ATUL GAUR, C.A. 4190/DEL/2018 DCIT, CIRCLE 11(1) NEW DELHI HMS REAL ESTATE P LTD. 1 AD, VANDHANA BUILDING 11, TOLSTOY MARG NEW DELHI 110 001 PAN: AACCH0745G 2014 - 15 NONE 4188/DEL/2018 DCIT, CIRCLE 11(1) NEW DELHI HERO FUTURE ENERGIES P LTD. 202, 3 RD FLOOR OKHLA INDUSTRIAL ESTATE PHASE 3 NEW DELHI PAN:AADCH0559F 2013 - 14 SH. LAKSHYA GO Y AL, ADV. AND SH. TARUN KUMAR, ADV. 13 /DEL/201 7 A CIT, CENTRAL CIRCLE 1 3 NEW DELHI SH. GAUTAM GUPTA C - 4/43 SAFDAR JUNG DEVE L OPMENT AREA NEW DELHI PAN:AAGPG1963J 201 2 - 13 NONE 4 1670 /DEL/201 7 DCIT, CIRCLE 1 LTU NBCC PLAZA PUSHP VIHAR NEW DELHI HAVELLS INDIA LTD. 1, RAJ NARAIN MARG CIVIL LINES DELHI 110 054 PAN: AAACH 0351 201 1 - 12 SH. RAJESH J AIN, CA & SH. AKSHAT JAIN, CA 44 /DEL/201 7 A CIT, CIRCLE 62 (1) NEW DELHI GUPTA BROS (INDIA) 232, JOR BAGH NEW DELHI 110 003 PAN:AAAFG4325Q 2012 - 13 SH. V RAJ KUMAR, ADV. 484 /DEL/201 7 A CIT, CENTRAL CIRCLE 2 NEW DELHI GRAND VENEZIA COMMERCIAL TOWERS P LTD. 28, RAJA GARDEN NEW DELHI 110 015 PAN:AADCG5999A 201 0 - 11 NONE 485/DEL/2017 ACIT, CENTRAL CIRCLE 2 NEW DELHI GRAND VENEZIA COMMERCIAL TOWERS P LTD. 28, RAJA GARDEN NEW DELHI 110 015 PAN:AADCG5999A 2011 - 12 NONE 5698/DEL/2016 ACIT, CIRCLE 12(1) NEW DELHI INFOTEL TECHNOLOGIES P LTD. D - 7, DHAWANDEEP APARTMENTS 6, JANTAR MANTAR ROAD NEW DELHI 110 001 PAN:AACCD8086E 2012 - 13 NONE 6057/DEL/2016 ACIT, CENTRAL CIRCLE 4 NEW DELHI GODAVARI VANIJYA P LTD. A - 43, PHASE II NOIDA EXTENSION NOIDA 201 305 PAN:AACCG4016H 2008 - 09 NONE 297/DEL/2018 DCIT, CIRCLE 12(1) NEW DELHI INFOTEL TECHNOLOGIES P LTD. D - 7, DHWANDEEP APARTMENTS 6, JANTAR MANTAR ROAD NEW DELHI 110 001 PAN:AACCD8086E 2014 - 15 NONE 396/DEL/2018 DCIT, CIRCLE 11(1) NEW DELHI HALDIA COKE AND CHEMICALS P LTD. 1 ST FLOOR SIGAPPI ACHI 2012 - 13 NONE 5 BUILDING EGMORE CHENNAI 600 008 PAN:AABCH5389P 207/DEL/2018 ITO(E), WARD 1(2) NEW DELHI INDIA ISLAMIC CULTURAL CENTRE 87 - 88, LODHI ESTATE NEW DELHI 110 003 PAN:AAATI2770F 2013 - 14 NONE 3252/DEL/2016 ITO(TDS)(INTERNATI ONAL TAXATION) WARD 2(1)(1) NEW DELHI INDEPENDENT NEWS SERVICE P LTD. B 39, OKH L A INDUSTRIAL AREA PHASE I NEW DELHI 110 020 PAN: AAAC13024R 2016 - 17 NONE REVENUE BY: SH. A .K. SHARMA, SR. D.R. DATE OF HEARING : 07/09/2018 DATE OF PRONOUNCEMENT: 0 7 / 0 9 / 2 0 1 8 ORDER PER BEENA A PILLAI, JM : THESE APPEALS BY DEPARTMENT AGAINST DIFFERENT ASSESSEE S AND A CROSS OBJECTION BY ASSESSEE ARE HEARD TOGETHER. THESE APPEALS HAVE BEEN FILED AGAINST ORDERS PASSED BY RESPECTIVE LD.CIT(A), IN RELATION TO DIFFERENT ASSESSMENT YEARS. 2. LD. SR. DR APPEARED ON BEHALF OF REVENUE. IN SOME APPEALS, ASSESSEES HAS RECORDED APPEARANCE THROUGH THEIR ATTORNEYS, WHILE IN OTHERS, ASSESSEES REMAINED UNREPRESENTED. 3. WE HAVE HEARD THE PARTIES. IT IS FOUND THAT PURSUANT TO MANDATE OF SECTION 268A, CBDT HAS ISSUED CIRCULAR NO. 03 OF 2018, DATED 11TH JULY, 2018 WITH RETROSPECTIVE EFFECT, REVISING MONETARY LIMIT TO RS.20,00,000/ - FOR NOT FILING APPEALS BEFORE THE TRIBUNAL. IT IS FURTHER FOUND THAT AS TAX EFFECT INVOLVED IN INSTANT APPEALS IS LESS THAN RS.20,00,000/ - , THEY ARE NOT MAINTAINABLE. THE LD. SR. D.R., ALTHOUGH SUPPORTED ORDERS OF LD.AO, COULD NOT CONTROVERT THE FACT THAT TAX EFFECT INVOLVED IN THESE APPEALS IS LESS THAN RS.20,00,000/ - . 6 4. ON G OING THROUGH ABOVE REFERRED CBDT CIRCULAR, IT IS CLE AR THAT IT IS APPLICABLE TO ALL PENDING APPEALS WITH RETROSPECTIVE EFFECT, AND THERE IS CLEAR - CUT DIRECTION TO DEPARTMENT TO EITHER WITHDRAW, OR NOT PRESS SUCH APPEALS FILED BEFORE THE TRIBUNAL, WHEREIN TAX EFFECT IS LESS THAN RS.20,00,000/ - . WE ARE, THERE FORE, OF THE VIEW THAT REVENUE SHOULD HAVE EITHER NOT FILED INSTANT APPEALS, OR WITHDRAW THE SAME, AS TAX EFFECT IN THESE APPEALS ARE ADMITTEDLY LESS THAN RS. 20,00,000/ - . 5. THE LD.CIT.DR BROUGHT TO OUR NOTICE LETTER DATED 20.08.2018 BY DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL PRINCIPAL CCITS IN RESPECT OF PARA NO. 10 OF CIRCULAR DATED 11.7.2018, ENUMERATING CERTAIN EXCEPTIONAL I NSTANCES WHERE APPEALS FILED BY REVENUE SHOULD BE CONTESTED, NOTWITHSTANDING LOW TAX EFFECT. FOR THE SAKE OF CONVENIEN CE THE SAME IS REPRODUCED AS UNDER: 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTITLED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARAGRAPH 3 ABOVE OR THERE IS NO TAX EFFEC T: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARD S ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE ADDITION RELATES TO UNDISCLOSED FOREIGN INCOME/UNDISCLOSED FOREIGN ASSETS (INCLUDING FINANCIAL ASSETS)/UNDISCLOSED FOREIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI/ED/DRI/SFIO/DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). (F) CASES WHERE PROSECUTION HAS BEEN FILED BY THE DEPARTMENT AND IS PENDING IN THE COURT. LD.CIT DR, HOWEVER, COULD NOT PLACE ANY M ATERIAL ON RECORD TO DEMONSTRATE THAT ANY OF THE APPEALS LISTED BEFORE US STANDS COVERED BY AMENDED PARA 10, VIDE LETTER DATED 20.08.2018 BY DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL PRINCIPAL CCITS. 5.1. UNDER THESE CIRCUMSTANCES, WE DISMISS ALL PR ESENT APPEALS FILED BY REVENUE WITH LIBERTY TO DEPARTMENT TO PREFER MISCELLANEOUS APPLICATIONS, IF IT IS FOUND THAT EITHER TAX EFFECT IS MORE THAN RS.20,00,000/ - , OR APPEAL GETS COVERED BY REVISED PARA 10 OF CIRCULAR DATED 11.7.2018, VIDE LETTER DATED 7 20. 08.2018 OF DIRECTOR (ITJ), CBDT, NEW DELHI ADDRESSED TO ALL PRINCIPAL CCITS. 6. ACCORDINGLY, APPEALS OF THE REVENUE STAND DISMISSED. 7 . SO FAR AS CROSS OBJECTION : C.O. NO. 83/DEL/2018 (IN ITA 813/DEL/18) FOR ASSESSMENT YEAR 2013 - 14 FILED BY ASSESSEE IS CONCERNED, SINCE APPEAL FILED BY REVENUE ARE DISMISSED, THE C.O. FILED BY ASSESSEE BECOMES INFRUCTUOUS AND IS DISMISSED AS SUCH. 8 . IN THE RESULT, ALL APPEALS BY REVENUE AS WELL AS C.O. BY ASSESSEE STANDS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 0 7 /09/2018 . S D / - S D / - (N.K.SAINI) (BEENA A PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 7 T H SEPTEMBER, 2018. GMV COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT, DELHI BENCHES, NEW DELHI 8 DATE 1. DRAFT DICTATED ON DRAGON 07/09/18 2. DRAFT PLACED BEFORE AUTHOR 07/09/18 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 0 7 / 0 9 / 1 8 7. ORDER UPLOADED ON 8. FILE SENT TO THE BENCH CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 11. DATE OF DISPATCH OF ORDER.