DCIT, New Delhi V. M/s Asis Moulds India Pvt. Ltd., Greater Noida

ITA 5298/DEL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4970 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 07-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KAPOOR
• Assessee Lawyers: SIDHARTHA KANWAR
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: A: NEW DELHI) BEFORE H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT ME MBER ITA NO:- 5298/DEL/2016 (ASSESSMENT YEAR: 2010-11) DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(2), NEW DELHI VS M/S ASIS MOULDS INDIA PVT. LTD., 33, UDYOG VIHAR, ECOTECH II, GREATER NOIDA-201306 (UP) PAN-AADCA2550P APPELLANT RESPONDENT APPELLANT BY SH. SANJ A Y KAPOOR , SR. DR RESPONDENT BY SH . SIDHARTHA KANWAR, ADV ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE ORDER DATED 05.07.2016 PASSED BY LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-I, NEW DELHI [IN SHORT, LD.CIT(A)] P ERTAINING TO ASSESSMENT YEAR 2010-11. IN THIS APPEAL, THE TAX E FFECT IS LESS THAN THE MONETARY LIMIT FIXED BY THE CENTRAL BOARD OF DI RECT TAXES (IN SHORT CBDT) IN ITS CIRCULAR NO.17/2009 DATED 08.0 8.2019. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- (1) THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DIRECTI NG THE AO TO RESTRICT THE DISALLOWANCE OF INDIRECT EXPENSES TO 2 5% WITHOUT ANY BASIS AS AGAINST 50% DISALLOWED BY THE AO. (2) THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELETIN G ADDITION OF RS. ITA NO: - 5298/DEL/2016 PAGE | 2 30,45,988/- ON ACCOUNT OF UNCONFIRMED CREDITORS AND RS. 47,30,277/- ON ACCOUNT OF UNCONFIRMED ADVANCE FROM CUSTOMERS DESPITE THE FACT THAT THE ASSESSEE HAS NOT FURNISHE D ANY DETAILS BEFORE THE AO. [B]. AT THE OUTSET, IT WAS BROUGHT TO THE NOTICE B Y LEARNED COUNSEL FOR THE ASSESSEE, AT THE TIME OF HEARING THAT TAX E FFECT IN THIS APPEAL IS BELOW RS. 50,00,000./-. VIDE RECENT CBDT CIRCULA R NO.17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO . 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIMIT OF TAX EF FECT OF FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL ('ITAT', FOR SHORT) HAS BEEN ENHANCED TO RS. 50,00,000/-. IN A S UBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F.NO. 279/MISC/M- 93/2018-ITJ, DATED 20/08/2019, IT HAS BEEN CLARIFIED BY CBDT THA T THE AFORESAID REVISED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PE NDING APPEALS IN ITAT. THEREFORE, IN VIEW OF THE FOREGOING, WE ARE O F THE VIEW THAT THIS APPEAL FILED BY REVENUE IS NOT MAINTAINABLE. THE LE ARNED DEPARTMENTAL REPRESENTATIVE ALSO DID NOT PRESS THE APPEAL. ACCORDINGLY, THIS APPEAL IS DISMISSED BEING NOT PRE SSED, AND ALSO NOT MAINTAINABLE, HAVING REGARD TO AFORESAID CBDT C IRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CBDT C IRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATION D ATED 20/08/2019. [C]. BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL B E AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION ITA NO: - 5298/DEL/2016 PAGE | 3 OF THE APPEAL IF IT IS FOUND THAT THIS APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07.2018. [D]. IN THE RESULT, THE APPEAL BY REVENUE IS DISMI SSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AF TER CONCLUSION OF HEARING ON THE DATE OF HEARING. NOW, THIS WRITTE N ORDER IS PRONOUNCED IN OPEN COURT ON 07.11.2019. SD/- SD/- (H.S. SIDHU) (ANADEE NAT H MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 07.11.2019 SH