ACIT, New Delhi V. M/s. Superb Developers (P) Ltd., New Delhi

ITA 53/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3470 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 19-04-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 03-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Assessee Lawyers: SURESH K GUPTA
• Keywords: Additional evidence; Accommodation entries; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO. 53/DEL/2014 ASSESSMENT YEAR: 2007-08 DCIT, CC-03, VS. M/S SUPERB DEVELOPERS P LTD ROOM NO. 355, 3 RD FLOOR, WZ-183, F.F. LANE NO. 4, JHANDEWALAN EXTENSION, LAJWANTI GARDEN, NEW DELHI 110 055 NEW DELHI (PAN:AAICS4437L) (APPELLANT) (RESPONDENT) AND C.O. NO. 192/DEL/2015 ASSESSMENT YEAR: 2007-08 M/S SUPERB DEVELOPERS P LTD VS. ACIT, CC-3, WZ-183, F.F., LANE NO. 4, NEW DELHI LAJWANTI GARDEN, NEW DELHI (PAN: AAICS4437L) (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. S.S. RANA, CIT(DR) ASSESSEE BY : SH. SURESH K. GUPTA, ADV . ORDER PER H.S. SIDHU, J.M. THE APPEAL HAS BEEN FILED BY THE DEPARTMENT AND THE CROSS OBJECTION FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-I, NEW DELHI DATED 25.10.201 3 RELATING TO ASSESSMENT YEAR 2007-08. 2 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN I TS APPEAL NO. 53/DEL/2014:- 1. THE CIT(A) ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 12,00,000/- U/S. 68 OF THE ACT W.R.T. PROCUREMENT OF ACCOMMODATION ENTRIES THROUGH SHARE APPLICATION MONEY FROM NON-DESCRIPT COMPANIES. 2. THE CIT(A) ERRED IN LAW AND ON FACTS IN DELETING AN ADDITION OF RS. 6,000/- MADE BYH THE AO W.R.T. COMMISSION PAID @5% FOR PROCUREMENT OF ACCOMMODATION ENTRIES THROUGH SHARE APPLICATION MONEY FROM NON-DESCRIPT COMPANIES. 3. THE CIT(A) ERRED IN ADMITTING ADDITIONAL EVIDENCE UNDER RULE 46A. 4. (A) THE ORDER OF THE CIT(A) IS ERRONEOUS AND NOT TENABLE IN LAW AND ON FACTS. (B) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY / ALL THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF THE HEARING OF THE APPEAL. 3 3. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN ITS CROSS OBJECTION:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT QUASHING THE ADDITION OF RS. 12,06,000/- U/S. 68 OF THE I.T. ACT ON THE GROUND THAT THE ABOVE ADDITIONS WERE NOT BASED ON ANY INCRIMINATING MATERIAL FOUND IN THE COURSE OF SEARCH ON THE RESPONDENT ASSESSEE WHEN THE ORIGINAL ASSESSMENT PROCEEDINGS IN THE CASE HAD NOT ABATED AS PER PROVISIO TO SECTION 153A(1) OF THE I.T. ACT. THAT THE ASSESSEE IS A PUBLIC LIMITED COMPANY FILING ITS RETURN OF INCOME REGULARLY. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. FROM THE ABOVE, WE FIND THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN RS.10,00, 000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, 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 CONVENIENCE, THE RELEVANT P ARA NOS. 3 & 10 OF THE AFORESAID CBDTS CIRCULAR ARE REPRODUCED AS UNDER:- 4 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS 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 MONETARY 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 INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTION OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOUL D HAVE WITHDRAWN/ NOT PRESSED THE PRESENT APPEAL, IN VI EW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN TH E 5 INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 6. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALSO OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUN AL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 7. AS REGARDS THE ASSESSEES CROSS OBJECTION IS CONCERNED, SINCE WE HAVE ALREADY DISMISSED THE REVENUES APPEAL ON ACCOUNT OF LOW TAX EFFECT, HENCE THE ASSESSEES CROSS OBJECTION HAS BECOME INFRUCTUOUS AN D THE SAME IS DISMISSED AS SUCH. 8. IN THE RESULT, APPEAL FILED BY THE REVENUE AS WELL AS CROSS OBJECTION FILED BY THE ASSESSEE STAND DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 19/04/2017. SD/- SD/- ( ANADEE NATH MISSHRA ) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19/04/2017 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR 6