ASSTT. C.I.T, CIR- 1., Nagpur V. SHRI BAJRANGLAL BANKATLAL MALOO, Nagpur

ITA 499/NAG/2014

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9194 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-07-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 01-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U U KASAR
• Assessee Lawyers: ABHAY AGARWAL
• Keywords: Deemed dividend; Tax effect
• Section: 2(22)(e)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO. 499 /NAG /201 4 / ASSESSMENT YEAR : 20 07 - 08 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, NAGPUR ....... / APPELLANT / V/S. SHRI BAJRANGLAL BANKATLAL MALOO, 101, JAI BHAWANI SOCIETY, C.A. ROAD, WARDHAMAN NAGAR, NAGPUR 440008 PAN : ACHPM5764C / RESPONDENT ASSESSEE BY : SHRI ABHAY AGARWAL REVENUE BY : SHRI U.U. KASAR / DATE OF HEARING : 2 8 - 03 - 2019 / DATE OF PRONOUNCEMENT : 2 8 - 03 - 201 9 2 ITA NO . 499 /NAG/201 4, A.Y. 2007 - 08 / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1, NAGPUR DATED 29 - 01 - 2018 FOR THE ASSESSMENT YEAR 20 14 - 15 . 2. SHRI ABHAY AGARWAL APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL BY REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018. 3. SHRI SHRI U.U. KASAR REPRESENTING THE DEPARTMENT STATED THAT APPARENTLY IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.20 LAKHS. 4. WE HAVE HEARD THE SUBMISSIONS OF LD. DR AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL) IN DELETING THE ADDITION OF R S . 56,48,750/ - MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DEEMED DIVIDEND U/S. 2(22)(E) O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) . PRIMA - FACIE, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE 3 ITA NO . 499 /NAG/201 4, A.Y. 2007 - 08 MONETARY LIMIT PRESCRIBED BY CBDT CIRCULAR FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS MENTIONED IN PARA 10 OF THE CIRCULAR (SUPRA). 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY, THE 2 8 TH DAY OF MARCH, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / NAGPUR ; / DATED : 2 8 TH MARCH, 2019. RK 4 ITA NO . 499 /NAG/201 4, A.Y. 2007 - 08 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - III, NAGPUR 4. THE CIT ( CENTRAL), NAGPUR 5. , , , / DR, ITAT, NAGPUR BENCH, NAGPUR . 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT , NAGPUR