DCIT, New Delhi V. M/s. Stericat Gutstrings (P) Ltd., New Delhi

ITA 5823/DEL/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6206 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 17-03-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 16-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BARNWAL
• Keywords: Retrospective amendment; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SH. I.C. SUDHIR, JUDICIAL M EMBER AND SH. O.P. KANT , ACCOUNTANT MEMBER ITA NO. 5823 /DEL/ 2012 ASSESSMENT YEAR: 2009 - 10 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 9(1), ROOM NO. 163, C.R. BUILDING, NEW DELHI VS. M/S. STERICAT GUTSTRINGS (P) LTD., W - 40, GREATER KAILASH - I, NEW DELHI GIR/PAN: AABCS3777L (APPELLANT) (RESPONDENT) APPELLANT BY SMT. ANIMA BARNWAL, SR.DR RESPONDENT BY SH. M.P. RASTOGI, ADV. DATE OF HEARING 17.03.2016 DATE OF PRONOUNCEMENT 31.03.2016 ORDER PER O.P. KANT , A. M. : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS) DATED 01.08.2012 IN RELATION TO ASSESSMENT YEAR 2009 - 10 , RAISING THE FOLLOWING GROUNDS OF APPEAL: I. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) ERRED IN LAW AS WELL AS ON FACTS IN DELETING THE ADDITION OF RS. 11,31,683/ - MADE BY THE ASSESSING OFFICER U/S 40(A)(I) READ WITH SECTION 195 OF THE ACT ON ACCOUNT OF FOREIGN AGENTS FOR SERVICES RENDERED. II. THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 1,56,787/ - MADE BY THE ASSESSING OFFICER UNDER SECTION 14A READ WITH RULE 8D OF THE INCOME TAX RULES, 1962. 2 ITA NO. 5823/DEL/2012 AY: 2009 - 10 III. THE APPELLANT CRAVES TO AMEND, ALTER, ADD OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. WE HAVE HEARD THE BOTH THE PARTIES AND PERUSED THE RELEVANT MATERIAL ON RECORD . IT IS NOTICED THAT THE CBDT H AS ISSUED CIRCULAR NO. 21 OF 2015 DATED 10.12.2015 WITH RETROSPECTIVE EFFECT, REVISING THE MONETARY LIMIT TO RS.10,00,000/ - FOR NOT FILING APPEALS BEFORE THE TRIBUNAL. THE LD. SR. DEPARTMENTAL REPRESENTATIVE , ALTHOUGH SUPPORTED THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THE FACT THAT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.10,00,000/ - . 3. FROM PARA 10 OF THE ABOVE CIRCULAR , IT IS PALPABLE THAT THE INSTRUCTION IS APPLICABLE TO THE PENDING APPEALS ALSO WITH RETROSPECTIVE EFFECT AN D THERE IS A CLEAR - CUT DIRECTION TO THE DEPARTMENT TO WITHDRAW OR NOT PRESS SUCH APPEALS FILED BEFORE THE ITAT , WHEREIN TAX EFFECT IS LESS THAN RS.10,00,000/ - . GOING BY THE PRESCRIPTION OF THE AFORE - NOTED CIRCULAR, WE ARE OF THE VIEW THAT THE REVENUE SHOUL D HAVE EITHER NOT FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL OR WITHDRAWN THE SAME AS THE TAX EFFECT IN THIS APPEAL IS ADMITTEDLY LESS THAN THE PRESCRIBED LIMIT I.E. RS. 10,00,000/ - FOR NOT FILING THE APPEAL . ACCORDINGLY , WE DISMISS THE INSTANT APPEAL W I THOUT GOING INTO MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STAND S DISMISSED. THE DECISION IS PRONOUNCED IN THE OPEN COURT ON 3 1 S T MARCH , 2016 . S D / - S D / - ( I.C. SUDHIR ) ( O.P. KANT ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 3 1 S T MARCH , 2016 . RK/ - COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3 ITA NO. 5823/DEL/2012 AY: 2009 - 10 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI