DCIT, New Delhi V. M/s. Vipul Ltd., Gurgaon

ITA 5107/DEL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7108 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 08-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 04-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN
• Assessee Lawyers: RAJESH ARORA
• Keywords: Tax effect
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 5107/DEL/2013 ASSESSMENT YEAR: 2008-09 DCIT, CIRCLE-17, VS. M/S VIPUL LTD., NEW DELHI VIPUL TECH SQUARE, GOLF COURSE ROAD, SECTOR-43, GURGAON (PAN: AAACA5396C) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. S.K. JAIN, SR. DR RESPONDENT BY : SH. RAJESH ARORA, CA DATE OF HEARING : 08-2-2016 DATE OF ORDER : 08-2-2016 ORDER PER H.S. SIDHU, J.M. THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 15.5.2013 OF LD. CIT(A)-III, NEW DELHI PERTAINING T O ASSESSMENT YEAR 2008-09 ON THE FOLLOWING GROUNDS:- 1. LD. CIT(A) ERRED IN LAW AND ON THE FACTS OF TH E CASE IN DIRECTING THE AO TO ADJUDICATE THE GROUNDS OF APPEAL RELATING TO THE ADDITION MADE U/S. 14A READ WITH RULE 8D, WITHOUT APPRECIATING TH AT IT IS THE CIT(A) WHO IS AN ADJUDICATING AUTHORITY. WHETHER ON THE FA CTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN ANNULLING THE ASSESSMENT U/S. 143(3) BY HO LDING THAT NO SEARCH WARRANT WAS ISSUED IN THE NAME OF THE ASSESS EE. THE CIT(A) HAS NOT GIVEN ANY FINDINGS ON THE MERIT OR DEMERIT OF THE CASE, ESPECIALLY THE DISALLOWANCE OF RS. 32,44,233/- MADE U/S. R.W.R. 8D IN THE ORDER GIVING EFFECT TO THE CIT(A)S ORDER DA TED 4.1.2012. ITA NO.5107/DEL/2013 2 2. THE APPELLANT CRAVES, LEAVE OR RESERVING THE RIG HT TO AMEND MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. AT THE THRESHOLD, LD. COUNSEL OF THE ASSESSEE S TATED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN THE PRESCRIBED LIMIT FIXED BY THE CBDT, HENCE, THE REVENUES APPEAL IS NOT MAINTAINABLE AND MAY BE DIS MISSED ACCORDINGLY. 2.1 ON THE OTHER HAND, LD. DR DID NOT CONTROVERT T HE SUBMISSIONS MADE BY THE LD. COUNSEL OF THE ASSESSEE. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS. WE FIND CONSIDERABLE COGENCY IN THE SUBMISSIONS OF THE LD. COUNSEL OF THE ASSESSEE THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAIN ABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CO NVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS CIRCULAR A RE REPRODUCED 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 MATTERS 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. 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 INSTRUCTI ONS ON ITA NO.5107/DEL/2013 3 THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L WAS FILED. 4. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORI TIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE P RESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 5. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HA VE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALS O OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE STAN DS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08/02/2016. SD/- SD/- (L.P. SAHU) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 08/2/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR