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

ITA 5299/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2835 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AGAINST TH E IMPUGNED PASSED
• Keywords: Tax effect
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO. 5299/DEL/2016 ASSESSMENT YEAR: 2011-12 DCIT, C IRCLE 3(2), NEW DELHI ROOM NO. 380B, C.R. BUILDING, I.P. ESTATE, NEW DELHI VS. M/S ASIS MOULDS INDIA PVT LTD., 33, UDYOG VIHAR, ECOTECH II, GREATER NOIDA-201306 (PAN:AADCA250P) ( APPELLANT ) (RESPONDENT) ORDER PER H.S. SIDHU, JM: THIS APPEAL IS FILED BY THE REVENUE AGAINST TH E IMPUGNED ORDER PASSED BY THE LD. CIT(A)-1, NEW DELH I RELATING TO ASSESSMENT YEAR 2011-12 ON THE FOLLOWIN G GROUNDS:- 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DIRECTING THE AO TO RESTRICT THE DISALLOWANCE OF INDIRECT EXPENSES TO 25% WITHOUT ANY BASIS AS AGAINST 50% DISALLOWED BY THE AO. 2. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELETING ADDITION OF RS. 24,67,461/- ON ACCOUNT OF UNCONFIRMED CREDITORS DESPITE THE DEPARTMENT BY SHRI ANIL KUMAR SHARMA, SR. DR. ASSESSEE BY SHRI SAMARTH, ADV. 2 FACT THAT THE ASSESSEE HAS NOT FURNISHED ANY DETAILS BEFORE THE AO. 3. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT 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 TIME OF HEARING, LD. COUNSEL FOR THE AS SESSEE HAS STATED THAT THE TAX EFFECT INVOLVED IN THIS DEPARTMENTAL APPEAL IS LESS THAN RS.50 LAKHS, HENCE , HE REQUESTED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN VIEW OF LATEST CBDT CIRCULAR NO. 17/ 2019 DATED 08.08.2019 WHEREIN THE MONETARY LIMIT FOR FI LING THE APPEAL BEFORE THE APPELLATE TRIBUNAL BY THE DEPARTM ENT HAVE BEEN ENHANCED TO RS.50 LAKHS. 3. IT IS NOTED THAT VIDE CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 ISSUED BY CBDT UNDER SECTION 268A OF THE I.T. ACT, IT HAS BEEN DIRECTED THAT THE DEPARTMENT SHALL NOT FILE APPEAL BEFORE THE TRIBUNAL IN CASE WHERE THE T AX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20 LAKHS. IT IS ALSO DIRECTED THAT THIS INSTRUCTION WILL APPLY RETR OSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFOR TH IN THE TRIBUNAL. PENDING APPEALS BELOW THE SPECIFIED T AX LIMIT MAY BE WITHDRAWN/NOT PRESSED BY THE DEPARTMENT. RECENTLY, THE CBDT VIDE CIRCULAR NO.17/2019 DATED 08.08.2019 AMENDED ITS EARLIER CIRCULAR NO.3/2018 ( SUPRA) 3 WHEREBY IT HAS BEEN DIRECTED THAT MONETARY LIMIT FO R FILING THE DEPARTMENTAL APPEAL IN INCOME TAX CASES MAY BE ENHANCED FURTHER THROUGH THIS AMENDMENT IN PARA-3 O F THE CIRCULAR MENTIONED ABOVE AND ACCORDINGLY, THE MONET ARY LIMIT FOR FILING THE APPEAL BEFORE THE APPELLATE TR IBUNAL HAVE BEEN ENHANCED TO RS.50 LAKHS. SINCE CIRCULAR NO.17/2019 DATED 08.08.2019 HAVE BEEN ISSUED TO AME ND ITS EARLIER CIRCULAR NO.3/2018 DATED 11.7.2018 (SUP RA), THEREFORE, ALL THE CONDITIONS OF EARLIER CIRCULAR N O.3/2018 SHALL APPLY ACCORDINGLY. THIS VIEW IS SUPPORTED BY THE ITAT, AHEMEDABAD A BENCH DECISION DATED 14 TH AUGUST, 2019 PASSED IN THE CASE OF INCOME TAX OFFICER, WARD 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS PASSED IN ITA NO. 1398/AHD/2004 (AY 1998-99). 4. LD. CIT(DR) DID NOT CONTROVERT THE AFORESAID PROPOSITION. 5. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES A S EXPLAINED ABOVE AND IN VIEW OF THE AFORESAID CBDT CIRCULARS AS WELL AS DECISION DATED 14 TH AUGUST, 2019 OF THE ITAT, AHEMEDABAD A BENCH PASSED IN THE CASE OF 4 INCOME TAX OFFICER, WARD 3(2), AHMEDABAD VS. DINESH MADHVLAL PATEL AND 627 OTHERS PASSED IN ITA NO. 1398/AHD/2004 (AY 1998-99), THE APPEAL OF THE DEPARTMENT IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMEN T IS DISMISSED. THE DECISION IS PRONOUNCED ON 02.09.2019. SD/- SD/- (ANADEE NATH MISSHRA) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 02.09.2019 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI