ITO, New Delhi V. M/s Nature Wealth Research Laboratories Pvt. Ltd., New Delhi

ITA 496/DEL/2011

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0035 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 30-03-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 28-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PEEYUSH SONKAR
• Keywords: Deemed dividend; Tax effect
• Section: 2(22)(e)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: E NEW DELHI BEFORE SHRI RAJPAL YADAV, JM AND SHRI B.C.MEENA, AM ITA NO. 496/DEL/2011 A.Y. 2006-07 ITO, WARD 13 (1) VS. M/S NATURE WEALTH RESEARCH LA BS P.LTD. NEW DELHI 123, GAGANDEEP BLDG. RAJENDRA PLACE, DELHI - 8 (APPELLANT) ( RESPONDENT) APPELLANT BY : SH. PEEYUSH SONKAR, SR.D.R. RESPONDENT BY : NONE O R D E R PER B.C.MEENA, ACCOUNTANT MEMBER THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDE R PASSED BY THE CIT (A)-XVI, NEW DELHI DATED 22.10.2010. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCOM E TAX (APPEALS) HAS ERRED BY DELETING DISALLOWANCE OF EXPENSES OF ` 2,39,168/- AND DELETING ADDITION OF ` 4,14,838/- MADE ON ACCOUNT OF DEEMED DIVIDEND U/S 2(22)(E) OF THE I.T.ACT. 3. AT THE THRESHOLD, WE NOTE THAT THE TAX EFFECT I N THIS APPEAL IS LESS THAN ` 3 LAKHS. AS PER INSTRUCTION NO. 3/2011 (F.NO. 279/MIS C./142/2007-ITJ) ITA 496/DELHI/2010 PAGE 2 OF 3 M /S NATURE WEALTH RES.LABS P.LTD. DATED 09.02.2011 ISSUED BY THE CBDT, THE TAX EFFECT FO R FILING APPEAL BEFORE THE APPELLATE TRIBUNAL SHOULD BE MORE THAN ` 3 LAKHS . IN THE PRESENT CASE, ADMITTEDLY THE TAX IS BELOW` 3 LAKHS, HENCE THE AP PEAL IS IN CONTRAVENTION OF THE AFORESAID CBDT CIRCULAR/INSTRUCTION. HENCE, THE SAME IS LIABLE TO BE DISMISSED. ACCORDINGLY, THIS APPEAL BY THE REVENUE STANDS DISMISSED FOR TAX EFFECT. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/03/2011 UPON CONCLUSION OF HEARING. SD/- SD/- (RAJPAL YADAV) (B. C.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 TH MARCH, 2011 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR 6.GUARD FILE BY ORDER DY. REGISTRAR ITA 496/DELHI/2010 PAGE 3 OF 3 M /S NATURE WEALTH RES.LABS P.LTD.