ITO (E), New Delhi V. M/s. Stage Door, New Delhi

ITA 4998/DEL/2014

• Counselvise Citation: [2019] 114 COUNSELVISE.COM (IT) 2214 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 15-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 12-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA; SARAS KUMAR
• Assessee Lawyers: SUDHIR KUMAR CA CONSOLIDATED
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

ITA NOS.-4998/DEL/2014 AND 1624/DEL/2015. STAGE DOOR. PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: G: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 4998/DEL/2014 ( ASSESSMENT YEAR: 2010-11) INCOME TAX OFFICER (E), TRUST WARD- II, DELHI. VS. STAGE DOOR, THE WELCOME THEATER STUDIO, FIRST FLOOR, 9, NIZAMUDDIN EAST, NEW DELHI. PAN NO: AAATM8292N APPELLANT RESPONDENT ITA NO:- 1624/DEL/2015 ( ASSESSMENT YEAR: 2011-12) INCOME TAX OFFICER (E), WARD- 2(2), NEW DELHI. VS. STAGE DOOR, THE WELCOME THEATER STUDIO, FIRST FLOOR, 9, NIZAMUDDIN EAST, NEW DELHI. PAN NO: AAATM8292N APPELLANT RESPONDENT REVENUE BY : SHRI S.S RANA, CIT(DR) AND SHRI SARAS KUMAR, SR. DR ASSESSEE BY : SHRI SUDHIR KUMAR, CA CONSOLIDATED ORDER PER BENCH (A) THE AFOREMENTIONED APPEALS BY REVENUE ARE TAKEN UP TOGETHER FOR THE SAKE OF CONVENIENCE AND BREVITY; AND ARE HEREBY DISPOSED OF F THROUGH THIS CONSOLIDATED ORDER. ITA NOS.-4998/DEL/2014 AND 1624/DEL/2015. STAGE DOOR. PAGE 2 OF 5 GROUNDS TAKEN IN THESE APPEALS OF REVENUE ARE AS UN DER: ITA NO.- 4998/DEL/2014 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN IGNORING THE FACT THAT MAJOR RECEIPT I .E. 95% OF THE ASSESSEE HAS BEEN OBTAINED FROM SPONSORSHIP CHARGES RECEIVED FROM CON DUCTING STAGE SHOWS AND SQUARELY COVERED UNDER THE FIRST LIMB OF PROVISO TO SECTION 2(15) OF THE ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD CIT(A) HAS ERRED IN IGNORING THE FACT THAT THE ASSE SSEE IS NOT RUNNING ANY EDUCATIONAL INSTITUTION AND IS NEITHER PROVIDING AN Y KING OF TRAINING NOR ANY KING OF SCHOLASTIC EDUCATION. THE ASSESSEE IS SIMPLY RUNN ING A THEATRE AND CONDUCTING STAGE SHOWS BY TRAINED ART WORKERS AND OBTAINING RE CEIPT BY WAY OF SPONSORSHIP AND HENCE, THE DECISION MADE IN THIS CASE OF SOLE T RUSTEE LOK SHIKSHANA TRUST VS. CIT 10 ITR 234 OF HONBLE APEX COURT IS NOT APPLICA BLE IN THE CASE OF THE ASSESSEE. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD CIT(A) HAS ERRED IN IGNORING THE FACT THAT THE AO WAS LEFT WITH NO OPTION EXCEPT TO COMPLETE THE TIME BARRING ASSESSMENT BASED ON THE M ATERIAL AVAILABLE ON RECORDS AS EVEN THE COUNSEL OF THE ASSESSEE VIDE HIS LETTER RE CEIVED ON 18/02/2014 INFORMED THAT HE HAS BEEN WITHDRAWING FROM THE CASE DUE TO T HE NON-COMPLIANCE OF THE ASSESSEE AND EVEN AFTER THAT NO REPLY WAS RECEIVED FROM THE ASSESSEE. 4. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. ITA NO. 1624/DEL/2015 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN IGNORING FEE FEET THAT MAJOR RECEIPT O F THE ASSESSEE HAS BEEN OBTAINED FROM SPONSORSHIP CHARGES RECEIVED FROM CONDUCTING S TAGE SHOWS AND SQUARELY COVERED UNDER THE FIRST LIMB OF PROVISO TO SECTION 2(15) OF THE IT ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN IGNORING THE FACT THAT THE ASSESSEE IS NOT RUNNING ANY EDUCATIONAL INSTITUTION AND IS NEITHER PROVIDING ANY KIND OF TR AINING NOR ANY KIND OF SCHOLASTIC EDUCATION. THE ASSESSEE IS SIMPLY RUNNING A THEATR E AND CONDUCTING STAGE SHOWS BY TRAINED ART WORKERS AND OBTAINING RECEIPTS BY WAY O F SPONSORSHIP AND HENCE, IN VIEW OF THE DECISION MADE IN THIS CASE OF SOLE TRUSTEE L OK SHIKSHANA TRUST VS. CIT 10ITR ITA NOS.-4998/DEL/2014 AND 1624/DEL/2015. STAGE DOOR. PAGE 3 OF 5 234 OF HONBLE APEX COURT IS NOT APPLICABLE IN THE CASE OF THE ASSESSEE. 3. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR A MEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. (B) BOTH SIDES, [REPRESENTATIVES OF REVENUE AND THE A SSESSEE] WERE IN AGREEMENT, AT THE TIME OF HEARING BEFORE US, THAT THE TAX EFFECT IN THE PRESENT APPEALS ARE 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, MIN IMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCOME TAX APPE LLATE TRIBUNAL HAS BEEN ENHANCED TO RS. 50,00,000/-. IN A SUBSEQUENT CLARIFICATION ISS UED 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 AP PEALS IN ITAT. HAVING REGARD TO THE AFORESAID, LEARNED AR FOR THE ASSESSEE SUBMITTED TH AT THE APPEALS WERE NOT MAINTAINABLE. THE LEARNED COMMISSIONER OF INCOME T AX (DEPARTMENTAL REPRESENTATIVE) [LD. CIT (DR), FOR SHORT] AND LEARNED SENIOR DEPA RTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHORT) ALSO DID NOT PRESS THESE APPEALS. THEREFORE, BOTH THESE APPEALS FILED BY REVENUE ARE DISMISSED, BEING NOT MAINTAINABLE; AND ALSO BEING NOT PRESSED. (C) BEFORE WE PART, WE EXPRESSLY CLARIFY THAT REVE NUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT, 1961; SEEKING RESTORATION OF EITHER OF THESE APPEAL S IF IT IS FOUND THAT AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07 .2018 ARE NOT APPLICABLE. ITA NOS.-4998/DEL/2014 AND 1624/DEL/2015. STAGE DOOR. PAGE 4 OF 5 (D) IN THE RESULT, THESE TWO APPEALS FILED BY REVENUE A RE DISMISSED BEING NOT MAINTAINABLE, AND ALSO BEING NOT PRESSED. OUR DECIS ION WAS ORALLY PRONOUNCED IN OPEN COURT AFTER CONCLUSION OF HEARING ON THE DATE OF HE ARING. NOW THIS DETAILED WRITTEN ORDER IS PRONOUNCED IN THE OPEN COURT ON 20/11/2019 . SD/- SD/- (AMIT SHUKLA) (ANADEE NATH MISS HRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 20/11/2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NOS.-4998/DEL/2014 AND 1624/DEL/2015. STAGE DOOR. PAGE 5 OF 5 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