DCIT, New Delhi V. M/s. Payal Polymers, New Delhi

ITA 5598/DEL/2011

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7133 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2007-2008
• Appeal Filed On: 12-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AFIQ AHMED
• Keywords: Tax effect
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES F : DELHI BEFORE SHRI BHAVNESH SAINI, J.M. AND SHRI L.P. SAHU, A.M. ITA.NO.5598/DEL./2011 ASSESSMENT YEAR 2007-2008 THE DCIT, CIRCLE-30(1), ROOM NO.106, DRUM SHAPE BLDG., NEW DELHI 110 002. VS. M/S. PAYAL POLYMERS, E-24, NETAJI SUBHASH MARG, DARYA GANJ, NEW DELHI 110 002. PAN AABFP3463H (APPELLANT) (RESPONDENT) C.O.NO.8/DEL./2012 ARISING OUT OF ITA.NO.5598/DEL./2011 - ASSESSMENT YEAR 2007-2008 M/S. PAYAL POLYMERS, E-24, NETAJI SUBHASH MARG, DARYA GANJ, NEW DELHI PIN-110002. PAN AABFP3463H VS. THE DCIT, CIRCLE - 30(1), ROOM NO.106, DRUM SHAPE BLDG., NEW DELHI. PIN - 110 002. ( CROSS OBJECTOR ) (RESPONDENT) FOR REVENUE : SHRI AFIQ AHMED, SR. D.R. FOR CROSS OBJECTOR : SHRI RAJKUMAR GUPTA, C.A. DATE OF HEARING : 1 6 .0 7 .2018 DATE OF PRONOUNCEMENT : 16 .0 7 .2018 2 ITA.NO.5598/DEL./2011 & C.O.NO.8/DEL./2012 M/S. PAYAL POLYMERS, NEW DELHI. ORDER PER BHAVNESH SAINI, J.M. THE DEPARTMENTAL APPEAL AS WELL AS CROSS OBJECTIO N BY ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE L D. CIT(A)-25, NEW DELHI-2, DATED 26.09.2011, FOR THE A.Y. 2007-20 08. 2. THE REVENUE IN THE PRESENT APPEAL HAS CHALLENGE D THE DELETION OF ADDITION OF RS.10,28,861/- UNDER TH E HEAD BAD DEBT AND CHALLENGED THE ORDER OF LD. CIT(A) IN ALL OWING DEDUCTION UNDER SECTION 80IB ON PROFIT OF RS.10,28, 861/-, RS.4,66,420/- AND RS.63,07,393/-. LEARNED COUNSEL F OR THE ASSESSEE FILED THE COMPUTATION OF TAX EFFECT ON THE ISSUE INVOLVED IN THE DEPARTMENTAL APPEAL AND SUBMITTED THAT THE T AX ALONG WITH SURCHARGE AND CESS WOULD COME TO RS.15,52,660/ -. THUS, THE TAX EFFECT IS LESS THAN RS.20 LAKHS. THE CHART FILED BY THE LEARNED COUNSEL FOR THE ASSESSEE IS NOT DISPUTED BY THE REVENUE. LEARNED COUNSEL FOR THE ASSESSEE ALSO SUBM ITTED THAT HE MAY BE PERMITTED TO WITHDRAW THE CROSS OBJECTION . AN ENDORSEMENT TO THE SAME EFFECT IS MADE IN THE CROSS OBJECTION. 3 ITA.NO.5598/DEL./2011 & C.O.NO.8/DEL./2012 M/S. PAYAL POLYMERS, NEW DELHI. 3. ADMITTEDLY, THE TAX EFFECT IN THE PRESENT APPEA L IS LESS THAN RS.20 LAKHS. VIDE CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 ISSUED BY CBDT, IT HAS BEEN DIRECTED THAT THE DEPARTMENT SHALL NOT FILE APPEAL BEFORE THE TRIBUNAL IN CASE W HERE THE TAX 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 HENCEFORTH IN TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT MAY B E WITHDRAWN/NOT PRESSED. THE LD. D.R. IN VIEW OF THE BOARDS CIRCULAR ABOVE DID NOT PRESS THE DEPARTMENTAL APPEA L. THE CASE OF THE DEPARTMENT WOULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE ABOVE BOARD CIRCULAR. IN THE RESULT, THE DEPART MENTAL APPEAL IS NOT MAINTAINABLE AS THE APPEAL IS FILED A GAINST THE BOARD INSTRUCTIONS REFERRED TO ABOVE AND THEREFORE, THE APPEAL OF THE DEPARTMENT IS LIABLE TO BE DISMISSED. 4. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED AND CROSS OBJECTION OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. 4 ITA.NO.5598/DEL./2011 & C.O.NO.8/DEL./2012 M/S. PAYAL POLYMERS, NEW DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 16 TH JULY, 2018 VBP/- COPY TO 1. THE APP ELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT F BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.