ITO, Muzaffarnagar V. Kisan Sewa Sahakarti Samiti Ltd. Morna, Muzaffarnagar

ITA 5671/DEL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2930 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 05-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI G.D. AGRAWAL, HONBLE PRESIDEN T AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 5671/DEL/2017 ASSESSMENT YEA R: 2014-15 ITO, KHATAULI, VS. M/S KISAN SEWA SAHAKARI SAMIT I LTD. MUZAFFARNAGAR, V&PO MORNA, DISTT. MUZAFFARNAGAR INCOME TAX OFFICE, GT ROAD, KHATAULI, MUZAFFARNAGAR (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRADEEP SINGH GAUTAM, SR. DR. RESPONDENT BY : NONE DATE OF HEARING: 23.08.2018 DATE OF PRONOUNCEMENT: 27.08.2018 ORDER PER BENCH THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER PASSED BY THE LD. CIT (APPEALS)-MUZAFFARNAGAR DATE D 27.6.2017 FOR A.Y. 2014-15. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. ADMITT EDLY, THE TAX EFFECT IS BELOW THE MONETARY LIMIT OF RS. 20 LA KHS. 3. IN TERMS OF CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 READ WITH SECTION 268 A OF THE INCOME TAX ACT, 1961, THIS APPEAL BY THE REVENUE SHOULD HAVE BEEN WITHDRAWN OR SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. 4. LD. SR. DR, HOWEVER PLACED ON RECORD THE COPY O F CBDTS INSTRUCTIONS DATED 20.08.2018 BEARING F.NO. 2 279/MISC.142/2007-ITJ(PT) AND SUBMITTED THAT THERE HAS BEEN AN AMENDMENT TO PARA 10 OF THE CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 WHEREIN, THE SAID PARA 10 HAS BEEN AME NDED AS UNDER:- 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT. (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE ADDITION RELATES TO UNDISCLOSED FOREIGN INCOME / UNDISCLOSED FOREIGN ASSETS (INCLUDING FINANCIAL ASSETS)/UNDISCLOSED FOREIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS CBI/ ED/DRI/SFIO / DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). (F) CASES WHERE PROSECUTION HAS BEEN FILED BY THE DEPARTMENT AND IS PENDING IN THE COURT. 4.1 LD. SR. DR FURTHER SUBMITTED THAT IN VIEW OF TH E AFORESAID AMENDMENT THE DEPARTMENT REQUIRES TIME IN ORDER TO OBTAIN A REPORT FROM ITS FIELD OFFICERS AS TO WHETHER THE DE PARTMENTS APPEAL IS COVERED UNDER ANY OF THE AFORESAID EXCEPT IONS. 3 5. HAVING HEARD THE LD. SR. DR AND AFTER GOING THR OUGH THE RECORDS BEFORE US, WE ARE OF THE OPINION THAT APPAR ENTLY THE DEPARTMENTS APPEAL IS NOT COVERED BY ANY OF THE AF ORESAID EXCEPTIONS AS ENUMERATED IN THE AFORESAID AMENDMENT TO THE INSTRUCTIONS AND THEREFORE, DELAYING THE DISPOSAL OF THE APPEAL BY WAITING FOR THE REPORT FROM THE FIELD OFFICERS W ILL NOT BE IN TRUE SPIRIT OF THE CIRCULAR. ACCORDINGLY, WE DEEM I T FIT TO TREAT THIS APPEAL AS DISMISSED WITH THE LIBERTY TO THE DEPARTM ENT TO SEEK RECALL OF THIS ORDER BY FILING A MISC. APPLICATION, BEFORE US IN CASE THE DEPARTMENTS APPEAL FALLS IN ANY OF THE ABOVE EXCEPTIONS. ACCORDINGLY, IN VIEW OF THE CBDTS CIRCULAR NO. 3 O F 2018 DATED 11.7.2018, THE APPEAL BY THE REVENUE IS DISMISSED IN LIMINE . 6. IN THE RESULT, THE APPEAL OF THE REVENUE STAN DS DISMISSED. SD/- SD/- (G.D. AGRAWAL) (SUDHANSHU SRIVA STAVA) PRESIDENT JUDICIAL MEMBER DATED: 27.08.2018 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4.CIT(A) 4. DR, ITAT BY ORDER ASSTT. REGISTRAR 4