DCIT, Chandigarh V. M/s Dynamic Finvest Services (P) Ltd., New Delhi

ITA 526/CHANDI/2015

• Counselvise Citation: 52621514 RSA 2015
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 14-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 14-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSHIL KUMAR
• Keywords: Deemed to accrue or arise in india; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.RANO JAIN, ACCOUNTANT MEMBER ITA NO. 526 & 528/CHD/2015 A.Y.: 2009-10, 2011-12 THE DCIT, VS M/S DYNAMIC FINVEST SERVICES P .LTD., CENTRAL CIRCLE-1, 12, SHAHIPUR, VILLAGE-SHALIMA R BAGH, CHANDIGARH. NEW DELHI. PAN: AAACD3347E (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI SUSHIL KUMAR ASSESSEE BY : NONE DATE OF HEARING : 14.12.2015 DATE OF PRONOUNCEMENT : 16.12.2015 O R D E R PER BHAVNESH SAINI,JM BOTH THE DEPARTMENTAL APPEALS ARE DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS) GURGAON DATED 13.03.2 015 FOR ASSESSMENT YEAR 2009-10 AND 2011-12. 2. IN ASSESSMENT YEAR 2009-10, REVENUE CHALLENGED THE DELETION OF ADDITION OF RS. 21,25,000/- AS DEEM ED INCOME AND EXPENSES THEREON AND IN ASSESSMENT YEAR 2011-12, REVENUE SIMILARLY CHALLENGED THE DELETION OF ADDITION OF RS. 31,87,500/- AS DEEMED INCOME AND EXPENSES THEREON. 2 3. THE LD. CIT(APPEALS) NOTED THAT ASSESSING OFFIC ER DID NOT CONSIDER THE DETAILS OF DIVIDEND WHICH WERE PLACED BEFORE ASSESSING OFFICER VIDE LETTER DATED 23.03.2012. ON PERUSAL, IT WAS SEEN THAT DIVIDENDS ARE FROM ITS INVESTMENT IN ITS GROUP COMPANY M/S SURYA PHARMACEUTICALS LTD. THEREFORE, NO ADVERSE INFEREN CE CAN BE DRAWN AGAINST THE ASSESSEE. THE LD. CIT(APPEALS), ACCORDINGLY, DELETED ADDITIONS. 4. ACCORDING TO CIRCULAR NO. 21/2015 DATED 10.12.2015, THE CBDT IN SUPERCESSION OF EARLIER INSTRUCTIONS HAS DIRECTED THAT DEPARTMENTS APPEALS BEFORE ITAT SHALL NOT BE FILED IN CASES WHERE THE T AX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 10 LACS. THE TAX WILL NOT INCLUDE ANY INTEREST THEREON. IT IS FURTHER CLARIFIED THAT IF IN THE CASE OF AN ASSESSE E, DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF DISP UTED ISSUES EXCEEDS THE MONETARY LIMIT SO SPECIFIED. TH IS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING A PPEALS AND APPEALS TO BE FILED HENCEFORTH BEFORE THE TRIBU NAL. THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT M AY BE WITHDRAWN/NOT PRESSED. 5. ADMITTEDLY, IN THE DEPARTMENTAL APPEAL, THE TAX EFFECT IS LESS THAN RS. 10 LACS, THEREFORE, DEPARTM ENTAL APPEAL IS NOT MAINTAINABLE. THE LD. CIT(APPEALS) DECIDED THE ISSUE IN DEPARTMENTAL APPEAL ON FACTS A ND 3 THE CASE OF THE REVENUE WOULD NOT FALL IN THE EXCEP TIONS PROVIDED IN THE ABOVE CIRCULAR. 6. IN VIEW OF THE ABOVE, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AND IS ACCORDINGLY, DISMISSED AS F ILED AGAINST THE INSTRUCTIONS OF THE BOARD. 7. IN THE RESULT, BOTH DEPARTMENTAL APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( RANO JAIN) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH DECEMBER, 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD