ITO, New Delhi V. M/s Pushpanjali Finsolutions Ltd., New Delhi

ITA 565/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1669 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 01-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Assessee Lawyers: LALIT KUMAR
• Keywords: Tax effect; Rule 8D
• Section: 14A; 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 565/DEL/2017 ASSESSMENT YEAR: 2012-13 INCOME TAX OFFICER, WARSD 20(2), NEW DELHI ROOM NO. 218, 2 ND FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI 2 VS. M/S PUSHPANJALI FINSOLUTIONS LIMITED, M-63-64, FIRST FLOOR, CONNAUGHT PLACE, NEW DELHI 2 (PAN: AAFCP2583B) ( 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)-36, NEW DEL HI RELATING TO ASSESSMENT YEAR 2012-13 ON THE FOLLOWIN G GROUNDS:- 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS. 1,00,69,372/- MADE BY THE AO U/S. 14A OF THE ACT WITHOUT DEPARTMENT BY SH. SURENDER PAL, SR. DR. ASSESSEE BY SH. LALIT KUMAR, ADV. 2 APPRECIATING THE FACTS THAT THE AO, AFTER RECORDING HIS SATISFACTION UNDER THE PROVISIONS OF SECTION 14A, HAS CORRECTLY COMPUTED THE DISALLOWANCE UNDER RULE 8D OF THE I.T. RULES. 2. THE APPELLANT CRAVES TO ADD, MODIFY OR DELETE ANY OF THE GROUNDS ON OR BEFORE THE DATE OF HEARING OF APPEAL. 2. IT IS NOTED THAT THE TAX EFFECT INVOLVED IN THIS DEPARTMENTAL APPEAL IS LESS THAN RS.50 LAKHS, HENCE , LD. COUNSEL FOR THE ASSESSEE REQUESTED THAT THE APPEAL OF THE REVENUE MAY BE DISMISSED IN VIEW OF LATEST CBDT CI RCULAR NO. 17/2019 DATED 08.08.2019 WHEREIN THE MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE APPELLATE TR IBUNAL BY THE DEPARTMENT HAVE BEEN ENHANCED TO RS.50 LAKHS. 3. IT IS FURTHER NOTED THAT VIDE CIRCULAR NO.3/201 8 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 3 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) 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 4. LD. CIT(DR) HAS AGREED THAT THE TAX EFFECT INVOL VED IN THIS APPEAL IS BELOW THE PRESCRIBED LIMIT I.E. RS . 50 LACS. 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 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 09.09.2019. SD/- SD/- (PRASHANT MAHARISHI) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09.09.2019 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI