DCIT, New Delhi V. M/s. Raju Investment P. Ltd., Delhi

ITA 5851/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7250 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 09-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 31-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V P MISHRA
• Assessee Lawyers: SURESH KR GUPTA
• Keywords: Additional evidence; Accommodation entries; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH.O.P.KANT, ACCOUNTANT MEMBER I.T.A .NO.-585 1/DEL/2013 (ASSESSMENT YEAR-20 10-11) DCIT, CENTRAL CIRCLE-03, ROOM NO.- 355, 3 RD FLOOR, JHANDEWALAN, EXTENSION, NEW DELHI. (APPELLANT) VS RAJU INVESTMENT P.LTD., WZ-183, GALI NO.4, LAJWANTI GARDEN, DELHI-110046. PAN-AAACR7499H (RESPONDENT) APPELLANT BY SH.V.P.MISHRA, SR.DR RESPONDENT BY SH. SURESH KR.GUPTA, CA ORDER PER DIVA SINGH, JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 27.08.2013 OF CIT(A)-1, NEW DELH I PERTAINING TO 2010-11 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS: 1. THE COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN L AW AND ON FACTS BY ACCEPTING ADDITIONAL EVIDENCE IN CONTRAVENTION OF R ULE 46A. 2. THE COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN LA W AND ON FACTS IN DELETING THE ADDITION OF RS.31,50,000/- U/S 68 OF T HE ACT W.R.T. PROCUREMENT OF ACCOMMODATION ENTRIES THROUGH SHARE APPLICATION MONEY FROM NON-DESCRIPT COMPANIES. 3. THE COMMISSIONER OF INCOME TAX(APPEAL) ERRED IN LAW AND ON FACTS IN DELETING AN ADDITION OF RS.15,750/- MADE BY THE AO W.R.T. COMMISSION PAID @5% FOR PROCUREMENT OF ACCOMMODATION ENTRIES T HROUGH SHARE APPLICATION MONEY FROM NON-DESCRIPT COMPANIES. 2. MR. SURESH KUMAR GUPTA, CA APPEARING ON BEHALF O F THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE REVENUE HAS BEEN F ILED CONTRARY TO THE LATEST CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 OF CB DT WHEREIN THE MONETARY LIMIT OF RS. 10 LACS HAS BEEN FIXED BY THE CBDT FO R FILING THE DEPARTMENTAL APPEAL DATE OF HEARING 09.06.2016 DATE OF PRONOUNCEMENT 27.06.2016 I.T.A .NO.-5851/DEL/2013 PAGE 2 OF 2 BEFORE THE ITAT. INVITING ATTENTION TO THE DEPARTME NTAL GROUNDS RAISED IT WAS SUBMITTED THAT AFTER CONSIDERING THE SURCHARGE AND CESS ETC. EVEN THEN THE TAX EFFECT INVOLVED IS RS.9,78,217/- CALCULATION SHEET IN SUPPORT OF THE SAID CLAIM WAS PLACED BEFORE THE BENCH. TIME WAS GIVEN TO THE LD.S R.DR TO GO THROUGH THE SAME AND THE APPEAL WAS PASSED OVER. IN THE SECOND ROUND , THE LD. SR. DR AGREED THAT THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LACS AND THE DEPARTMENTAL APPEAL MAY BE DISMISSED AS NOT PRESSED. THE CALCULATION PROVIDED NOT DISPUTED BY THE LD.SR.DR IS REPRODUCED HEREUNDER:- AMOUNT CALCULATED IN APPEAL OF DEPARTMENT RS.31,6 5,750/- TAX DUE @ 30% RS. 9,49,725/- SURCHARGE @ 2% ED. CESS RS. 18,995/- RS. 9,68,720/- SE CESS @ 1% RS. 9,497/- RS. 9,78,217/- 3. WE HAVE HEARD THE SUBMISSIONS OF THE PARTIES ON THIS ISSUE AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE CBDT VIDE THE AFORESAID CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT TO RS.10 LACS FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL . PARA 3 OF THE AFORESAID CIRCULAR HAS BEEN MADE APPLICABLE VIDE PARA 10 RETR OSPECTIVELY. CONSIDERING THE SETTLED LEGAL PRECEDENT THAT THE BOARDS INSTRUCTIO NS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX A CT, 1961 ARE BINDING ON THE AUTHORITIES, WE DISMISS THE DEPARTMENTAL APPEAL CON SIDERING THE MATERIAL AVAILABLE ON RECORD. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 27 TH JUNE, 2016. SD/- SD/- (O.P.KANT) (DIVA SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI