DCIT, circle-12(1), New Delhi V. Infonox Software P.Ltd, New Delhi

ITA 5833/DEL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4176 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 10-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RASHMI KHANNA
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, DELHI BENCH C, NEW DELHI BEFORE : SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NOS. 5833, 5887, 5888, 5889 & 5890/DEL/2018 ASSESSMENT YEARS: 2011-12, 2012-13, 2013-14, 2014-1 5 & 2015-16 DCIT, CIRCLE 12(1), (APPELLANT) VS. INFONOX SOFTWARE PVT. LTD., A - 1/292, JANAKPURI, NEW DELHI. PAN AAACI7076H (RESPONDENT) APPELLANT BY SH. AMIT KATOCH, SR. DR RESPONDENT BY SMT. RASHMI KHANNA, ADVOCATE. ORDER PER L.P. SAHU, A.M.: THESE APPEALS ARE FILED BY THE REVENUE AGAINST THE ORDERS PASSED BY LEARNED CIT(A)-4, NEW DELHI FOR THE CAPTIONED ASSES SMENT YEARS. 2. HEARD BOTH THE PARTIES AND PERUSED THE RECORD. 3. DURING THE COURSE OF HEARING, THE LD. SR. DR SUB MITTED THAT THERE IS NO DOUBT THAT TAX EFFECT INVOLVED IN EACH OF THESE APP EALS IS LESS THAN RS.20 LAKHS, THUS, BOUND BY THE DEPARTMENTAL INSTRUCTION, THESE APPEALS HAVE TO BE WITHDRAWN. HOWEVER, ATTENTION WAS INVITED TO PARA 1 0 OF THE CIRCULAR NO. 3/2018, DATED 11 TH JULY, 2018, WHICH HAS BEEN MODIFIED BY CIRCULAR DA TED 20TH AUGUST, 2018 AND IN TERMS OF THE SAID MODIFICATION THE DEPARTMENTAL REPRESENTATIVES MADE A PRAYER THAT PERMISSION TO PR AY FOR RECALL OF THE ORDER DATE OF HEARING 13.03.2019 DATE OF PRONOUNCEMENT 13.03.2019 ITA NOS. 5833, 5887 TO 5890/DEL/2018 2 MAY BE GRANTED IN CASE ANY OF THE CONDITIONS IN THE REPORTS MADE AVAILABLE BY THE A.O. SUBSEQUENTLY, SHOW THAT THE ISSUES WERE RE QUIRED TO BE CONTESTED. THE MODIFIED PARA IS EXTRACTED HEREUNDER: 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING I SSUES 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 PROVI SIONS OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARD'S 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 I NCOME/UNDISCLOSED FOREIGN ASSETS (INCLUDING FINANCIAL ASSETS)/ UNDISCLOSED FO REIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVE D 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. GOING BY THE PRESCRIPTION OF CIRCULAR NO. 3/2018 , DATED 11TH JULY, 2018, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE EIT HER NOT FILED THE INSTANT APPEALS BEFORE THE TRIBUNAL OR WITHDRAWN THE SAME A S THE TAX EFFECT IN EACH OF THESE APPEALS IS ADMITTEDLY LESS THAN THE PRESCRIBE D LIMIT, I.E., RS. 20,00,000/- FOR NOT FILING THE APPEALS. ACCORDINGLY, WE DISMISS THE APPEALS FILED BY THE REVENUE WITHOUT GOING INTO MERITS OF THE CASE. HOWE VER, IT IS MADE CLEAR THAT ITA NOS. 5833, 5887 TO 5890/DEL/2018 3 THE DEPARTMENT IS AT LIBERTY TO FILE MISCELLANEOUS APPLICATION, IF THE TAX EFFECT IS FOUND TO BE MORE THAN THE PRESCRIBED LIMIT OF RS .20,00,000/- OR ANY OF THE CONDITIONS ETC., AS AVAILABLE IN THE AMENDMENT CARR IED OUT IN PARA 10 OF CIRCULAR NO. 3/2018, DATED 20.08.2018, IS MADE OUT. ACCORDINGLY, THE APPEALS OF THE REVENUE DESERVE TO BE DISMISSED. 5. IN THE RESULT, ALL THESE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.03.2019. SD/- SD/- (H.S. SIDHU) (L.P. SA HU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 13.03.2019 *AKS* COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI