ITO, New Delhi V. M/s. Sri Raghunath Traders, Delhi

ITA 5104/DEL/2014

• Counselvise Citation: 510420114 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 16-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B-1: NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY, AM & SHRI SUDHANSHU SRIVASTAVA, JM SL.NO. ITA/IT(SS)A, CO NO. APPELLANT RESPONDENT ASSTT. YEAR/ PERIOID ASSESSEE BY 1 . 4275/DEL/2014 DCIT, CIRCLE - 8(1), NEW DELHI SKYLINE ENGG. CONTRACTS INDIA P. LTD., PLOT NO. 4, GROUND FLOOR, KEHAR SINGH ESTATE, SAID- UL-AJAIB, NEW DELHI 110 030 PAN: AAACS8955P 2010 - 1 1 NONE 2 . 5104/DEL/2014 ITO, WARD - 29(1), NEW DELHI SRI RAGHUNATH TRADERS, 2046, KATRA TOBACCO, KHARI BAOLI DELHI-110 006 PAN:AABFS5596C 2007 - 08 NONE 3 6040/DEL/2014 DCIT, CENTRAL CIRCLE-4, NEW DELHI RAVINDER KUMAR, E - 1A, (E-13), MAHARANI BAGH, NEW DELHI PAN AAIPK4790M 2011 - 1 2 NONE 4 . 6042/DEL/2014 ACIT, CENTRAL CIRCLE-17, NEW DELHI-110 055 MADHU GUPTA, 4827/24, ANSARI ROAD, DARYAGANJ, NEW DELHI PAN:AAOPG8891M 2010 - 1 1 NONE 5 . 4187/DEL/2014 ITO , WARD - II(2) GURGAON NAVIR SINGH S/O SHRI OM PRAKASH VILL- BADSHAHPUR, NEAR DARBARIPUR ROAD, GURGAON, PAN BIRPS8536D 2008 - 09 NONE 6 . 3649/DEL/2015 DCIT , CIRCLE - 1, BLOCK I-B, CGO COMPLEX, FARIDABAD SSP(PVT.) LTD. 13, MILE STONE, MATHURA ROAD FARIDABAD PAN:AAECS1415J 2011 - 12 NONE 7 . 2067/DEL/2015 ITO, WARD - 24(3), NEW DELHI SUNCITY DHOOT COLONIZERS PVT. LTD. 20 08 - 09 NONE 2 SUNCITY BUSINESS TOWER, 2 ND FLOOR, PLOT NO. 218, GOLF COURSE ROAD, SECTOR -54, GURGAON- 122002 PAN:AAKCS1558E 8 . 3244/DEL/2015 ACIT, ROOM NO. 356, ARA CENTRE, E-2, ARA CENTRE, JHANDEWALAN EXTN. NEW DELHI MANI CAPITAL LTD. 14, RATAN MAHAL, 15/197, CIVIL LINES KANPUR PAN:AAACD4969L 2010 - 11 NONE 9 . 5303/DEL/2015 ACIT, CIRCLE - II, CGO COMPLEX-II, HAPUR, CHUNGI ROAD, GHAZIABAD SHIVAM ENGINEERS & FABRICATORS, 8, 1 ST FLOOR, ANSAL SATYAM, RAJ NAGAR, GHAZIABAD PAN:ABJFS6441B 201 0 - 1 1 NONE 10 . 5304/DEL/2015 ACIT , CIRCLE - II, CGO COMPLEX-II, HAPUR, CHUNGI ROAD, GHAZIABAD SHIVAM ENGINEERS & FABRICATORS, 8, 1 ST FLOOR, ANSAL SATYAM, RAJ NAGAR, GHAZIABAD PAN:ABJFS6441B 2010 - 11 NONE 11 . 5102/DEL/2015 ITO - 3(3), GURUDWARA ROAD, CIVIL LINES, BIJNOR-246701 CHAUDHARY COLONISERS PVT. LTD. VILL.&POST AADAMPUR, RING ROAD NEAR ST. MARYS CHAURAHA, BIJNOR PAN:AACCC6835C 2008 - 0 9 NONE 12 . 5274/DEL/2015 DCIT, CIRCLE - 1, GHAZIABAD FRIENDS INFRASTRUCTURE PVT. LTD. C-22, IIIRD FLOOR, RDC, RAJ NAGAR, GHAZIABAD PAN:AAACF8504B 201 0 - 1 1 NONE 13 . 5294/DEL/2015 DCIT, CENTRAL CIRCLE-07, NEW DELHI JAL BEVERAGE PVT. LTD. 52, JANPATH, NEW DELHI 110 001 PAN AAACJ6275H 20 10 - 11 NONE 14 . 5112/DEL/2015 ACIT, CIRCLE - 22(1), ROOM NO. 226, 2 ND FLOOR, SARAYA INDUSTRIES LTD., 302, THAPAR ARCADE, 47, KALU 2010 - 11 NONE 3 C.R. BUILDING, I.P. ESTATE, NEW DELHI. SARAI, BEHIND AZAD APARTMENTS, HAUZ KHAS, NEW DELHI PAN AAACS0205Q 15 . 3604/DEL/2015 DCIT, CIRCLE - 13(2), C.R. BUILDING, NEW DELHI JUNEJA CONSTRUCTION PVT. LTD., 4/61, MALVIYA NAGAR, NEW DELHI110 017 PAN:AAACJ9058L 2010 - 11 NONE 16 . 575/DEL/2015 DCIT, CENTRAL CIRCLE-29, NEW DELHI JYOTI GUPTA, 43/1, RAJPUR ROAD, CIVIL LINE, DELHI PAN:AKCPG5459P 20 11 - 1 2 NONE PER SUDHANSHU SRIVASTAVA, JM ALL THESE APPEALS FILED BY THE REVENUE WERE FIXED B ECAUSE APPARENTLY, IN ALL THE CASES, THE TAX EFFECT IS BELOW RS. 10 LAKHS WHICH W OULD BE EVIDENT FROM THE DISPUTED ADDITIONS IN THE GROUNDS OF APPEAL RAISED BY THE RE VENUE. THE DISPUTED ADDITIONS BEFORE US ARE AS UNDER:- S.NO. ITA NO. NAME OF THE PARTY DISPUTED ADDITIONS BEFORE US 1. 4275/DEL/2014 DCIT VS. SKYLINE ENGG. CONTRACTS INDIA P. LTD. RS. 26,14,682/ - 2. 5104/DEL/2014 ITO VS. SRI RAGHUNATH TRADERS RS. 17,23,984/ - 3. 6040/DEL/2014 DCIT VS. RAVINDER KUMAR RS. 13,00,000/ - 4. 6042/DEL/2014 ACIT VS. MADHU GUPTA RS. 25,00,000/ - 5. 4187/DEL/2014 ITO VS. NAVIR SINGH RS. 27,08,486/ - 6. 3649/DEL/2015 DCIT VS. SSP(PVT.) LTD. RS. 14,25,468/ - 7. 2067/DEL/2015 ITO VS. SUNCITY DHOOT COLONIZERS PVT. LTD. RS. 13,81,864/ - 8. 3244/DEL/2015 ACIT VS. MANI CAPITAL LTD. RS. 13,67,760/ - 9. 5303/DEL/2015 ACIT VS. SHIVAM ENGINEERS & FABRICATORS RS. 4,85,000/ - 10. 5304/DEL/2015 ACIT VS. SHIVAM ENGINEERS & FABRICATORS RS. 4,85,000/ - 11. 5102/DEL/2015 ITO VS. CHAUDHARY COLONISERS PVT. LTD. RS. 20,00,000/ - 12. 5274/DEL/2015 DCIT VS. FRIENDS INFRASTRUCTURE PVT. LTD. RS. 19,95,839/ - 4 13. 5294/DEL/2015 ACIT VS. JAI BEVERAGE PVT. LTD. RS. 22,87,976/ - 14. 5112/DEL/2015 ACIT VS. SARAYA INDUSTRIES LTD. RS. 17,78,070/ - 15. 3604/DEL/2015 DCIT VS. JUNEJA CONSTRUCTION PVT. LTD. RS. 14,62,758/ - 16. 575/DEL/2015 DCIT VS. JYOTI GUPTA RS. 16,70,300/ - 2. THE CBDT IN ITS CIRCULAR NO. 21/2015 DATED 1 0 TH DECEMBER, 2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF THE DEPARTMENTAL A PPEALS TO THE ITAT AT RS. 10 LAKHS WHICH IS EVIDENT FROM PARAGRAPH 3 OF THE CIRCULAR, WHICH READS AS UNDER :- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S. NO. APPEALS IN INCOME - TAX MATTER MONETARY LIMIT (IN RS.) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 3. IN PARAGRAPH 10 OF THE CIRCULAR, SUCH MONETAR Y LIMITS HAVE BEEN MADE APPLICABLE RETROSPECTIVELY. FOR READY REFERENCE, WE REPRODUCE PARAGRAPH 10 BELOW :- 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. THEREFORE, THE ABOVE CIRCULAR WOULD BE SQUARELY APP LICABLE TO THE APPEALS 5 UNDER CONSIDERATION BEFORE US. 5. LEARNED CIT-DR SHRI RAVI JAIN WHO APPEARED AT THE TIME OF HEARING BEFORE US STATED THAT HE NEEDS SOME TIME TO CALL FOR THE R EPORT FROM THE ASSESSING OFFICER AS WELL AS INSTRUCTIONS FROM ADMINISTRATIVE CIT FOR WITHDRAWING THESE APPEALS BECAUSE THE APPEALS WERE FILED WITH THE APPROVAL OF ADMINISTRATIVE CIT. LEARNED CIT-DR FURTHER POINTED OUT THAT IN PARAGRAPH 7 OF T HE SAID CIRCULAR, IT HAS BEEN CLARIFIED BY THE CBDT THAT WITHDRAWAL OF THESE APPE ALS BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRE CEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THESE APPEA LS AND, THEREFORE, IF IN THE SUBSEQUENT YEARS SIMILAR ISSUE ARISES BEFORE THE IT AT WHERE THE APPEAL IS ABOVE THE TAX LIMIT AS PRESCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 6. AFTER CONSIDERING THE SUBMISSIONS OF LEARNED DR, TH E FACTS OF ALL THE CASES AND THE CIRCULAR OF THE CBDT, WE ARE OF THE OPINION THAT THERE IS NO NECESSITY FOR ADJOURNING THE APPEALS AND CALLING THE REPORT FROM THE ASSESSING OFFICER BECAUSE APPARENTLY, THE TAX EFFECT INVOLVED IN THESE APPEAL S OF THE REVENUE IS BELOW RS. 10 LAKHS. HOWEVER, WE ADD HERE THAT IF ON RECEIPT OF O RDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS. 10 LAKHS OR, IN AN Y OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE, HE WILL BE AT LIBERTY TO FILE A MISCELL ANEOUS APPLICATION. WE ALSO AGREE WITH THE CONTENTION OF THE LEARNED CIT-DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLV ED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE I SSUE INVOLVED IN THESE APPEALS BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOS E YEARS IS MORE THAN RS. 10 LAKHS. WITH THIS REMARK, WE DEEM IT PROPER TO DISMISS THE APPEALS IN THE LIGHT OF THE 6 CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER, 2015. 7. IN THE RESULT, ALL THE ABOVE MENTIONED APPEALS O F THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/12/2015. SD/- SD/- (J. SUDHAKAR REDDY) (SUDH ANSHU SRIVASTAVA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 31/12/2015 VEENA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI. 7 DATE 1. DRAFT DICTATED ON 23.12.2015 2. DRAFT PLACED BEFORE THE AUTHOR 28.12.2015 3. DRAFT PLACED BEFORE THE OTHER MEMBER 4. APPROVED DRAFT COMES TO THE SR.PS/PS 5. FILE SENT TO THE BENCH CLERK 6. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 7. DATE ON WHICH FILE GOES TO THE AR 8. DATE OF DISPATCH OF ORDER.