ITO, New Delhi V. M/s. Aggarwal Tube Suppliers Pvt. Ltd., New Delhi

ITA 5068/DEL/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 5006 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 26-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJOG KAPOOR
• Keywords: Tax effect

Judgement Text

ITO VS. AGGARWAL TUBE SUPPLIERS PVT. LTD./ I.T.A.NO .5068/DEL/2016/A.Y.2012-13 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER . . /. I.T.A NO.5068/DEL/2016 / ASSESSMENT YEAR:2012-13 ITO WARD 1(4), ROOM NO. 398B, C.R. BUILDING, I.P. ESTATE, NEW DELHI. VS. AGGARWAL TUBE SUPPLIERS PVT. LTD. K-7B, GROUND FLOOR, KALKAJI, NEW DELHI. APPELLANT / RESPONDENT PAN NO. AAFCA9636A /REVENUE BY SHRI SANJOG KAPOOR, SR. DR /ASSESSEE BY SHRI MAYANK PATAWARI, CA /O R D E R PER H.S. SIDHU, J.M. 1. THIS APPEAL FILED BY THE REVENUE AGAINST THE IMP UGNED ORDER DATED 18.07.2016 PASSED BY THE LD. CIT(APPEALS)-1, NEW DE LHI IN RELATION TO ASSESSMENT YEAR 2012-13 ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN ADOPTING THE PURCHAS E VALUE OF SHARES AT RS. 1,56,75,000/- AS AGAINST RS. 28,53,655/- WORKED OUT BY AO AND ALLOWING CONSEQUENTIAL LOSS ON SALE OF SHARES TO THE TUNE OF RS. 1,28,35,833/- FOR THE FOLLOWING REASONS: 1.1 THAT THE SELLING PARTIES WERE NOT HAVING THE SHARES OF ASHUTOSH PAPER MILLS LTD. (WHICH WAS SOLD) IN THEIR POSSESSION AS ON 03.01.2012 WHEREAS THEY RECEIVED T HE ITO VS. AGGARWAL TUBE SUPPLIERS PVT. LTD./ I.T.A.NO .5068/DEL/2016/A.Y.2012-13 PAGE 2 OF 3 SHARES IN THE DE-MAT ACCOUNTS IN THE MONTH OF MARCH 2012 ONLY. 1.2 THAT THE ASSESSEE HAS FAILED TO PROVE THAT THERE WA S ACTUAL TRANSFER OF SHARES ON THE DATE OF ISSUE OF A LLEGED DEBIT NOTE WHICH COULD NOT BE CONFIRMED AS THE ASSE SSEE HAS FAILED TO PRODUCE THE PARTY FOR VERIFICATION. 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) O F APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. WE HAVE HEARD THE LEARNED CIT (D.R.), WHO HAS PO INTED OUT THE TAX EFFECT INVOLVED IN THIS APPEAL, IS BELOW MONETARY L IMIT PRESCRIBED BY THE CBDT. WE FIND THAT THE CBDT VIDE CIRCULAR NO.17/201 9 DATED 8 TH AUGUST 2019 [F.NO.279/ MISC.142/ 2007-ITJ (PT)] BY AMENDIN G PARA 3 OF CBDT CIRCULAR NO.3/2018 DATED 11.07.2018 HAS ENHANCED TH E MONETARY LIMIT FOR FILING OF APPEAL BEFORE TRIBUNAL TO RS.50 LAKHS AND HAS ALSO REMOVED THE ANOMALY IN PARA 5 OF SAID CIRCULAR NO. 3/2018. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXCEPTIONS CL AUSE 10 OF SAID CBDT CIRCULAR NO. 3/2018. THEREFORE, THE PRESENT APPEAL IS NOT MAINTAINABLE AS PER ABOVE CIRCULAR NO. 17/2019, HENCE DISMISSED. TH IS CIRCULAR IS APPLICABLE TO ALL PENDING APPEALS AS CLARIFIED BY C BDT LETTER DATED 20.08.2019 [F. NO. 279/MISC./M-93/2018-ITJ] AND IN THE LIGHT OF JUDGEMENT OF HON`BLE SUPREME COURT IN THE CASE OF P R. CIT, JAIPUR V. MEENAKSHI MODI SLP (CIVIL) DIARY NO. 25076 OF 2019- DATED 16.08.2019 WHEREIN THE HON`BLE SUPREME COURT HAS DISMISSED THE APPEAL OF ITO VS. AGGARWAL TUBE SUPPLIERS PVT. LTD./ I.T.A.NO .5068/DEL/2016/A.Y.2012-13 PAGE 3 OF 3 REVENUE, AS TAX INVOLVED WAS LESS THAN RS. 2 CRORES . HOWEVER, THE REVENUE IS AT LIBERTY TO APPROACH TO THIS TRIBUNAL FOR RECALLING THIS ORDER, IF IT IS COMES TO THE NOTICE OF THE AO THAT THE TAX EFFECT IS MORE THAN THE MONETARY LIMIT PROVIDED UNDER ABOVE CIRCULAR OR THE APPEALS IS FALL WITHIN AMBIT OF THE EXCEPTIONS PROVIDED UNDER THE SAID CIR CULAR. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS STAN DS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.11.201 9 SD/- SD/- (R.K. PANDA) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 21 ST NOVEMBER, 2019 *KAVITA ARORA, SR. PS COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A) / ITAT (DR)/GUARD FILE OF ITAT. BY ORDER ASSISTANT REGISTRAR, ITAT: DELHI BENCHES-DELHI