ITO, New Delhi V. M/s. Laxman Industrial Resources Ltd., Delhi

ITA 5904/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7942 (ITAT-DELHI)
• Duration Of Justice: 46 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2016
• Appeal Filed By: Department
• Assessment Year: misc
• Appeal Filed On: 01-01-1970
• Court: TRIBUNAL
• Assessee Lawyers: DR RAKESH GUPTA; SOMIL AGGARWAL ADVS
• Keywords: Opportunity of cross examination; Accommodation entries; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI J.S. REDDY, ACCOUNTANT MEMBER ITA NO. 5904/DEL/2013 ASSESSMENT YEAR: 2004-05 INCOME TAX OFFICER, VS. M/S LAXMAN INDUSTRIAL RE SOURCES WARD 4(3), NEW DELHI LTD., ROOM NO. 323, CR BLDG., FLAT NO. 112, PLOT NO. 9, IP ESTATE, NEW DELHI LAXMI DEEP, DISTT. CENTRE LAXMI NAGAR, DELHI 92 (PAN:AAACL7598M) (APPELLANT) (RESPONDENT) AND CROSS OBJECTION NO. 315/DEL/2015 (IN ITA NO. 5904/DEL/2013) ASSESSMENT YEAR: 2004-05 M/S LAXMAN INDUSTRIAL RESOURCES LTD., VS. ITO, WAR D 4(3), C/O M/S RRA TAXINDIA, NEW DELHI D-28, SOUTH EXTENSION PART-I, NEW DELHI (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. T. JAMES SINGSON, SR. DR ASSESSEE BY : DR. RAKESH GUPTA, & SO MIL AGGARWAL, ADVS. DATE OF HEARING : 12-05-2016 DATE OF ORDER : 12-05-2016 ORDER PER H.S. SIDHU, J.M. THE DEPARTMENT HAS FILED THIS APPEAL AND ASSESSEE HAS FILED THE CROSS OBJECTION WHICH IS EMANATE FROM THE ORDER DATED 21. 08.2013 OF LD. CIT(A)-VIII, NEW DELHI PERTAINING TO ASSESSMEN T YEAR 2004-05. ITA NO.5904/DEL/2013 & CO NO. 315/DEL/2015 2 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL WHICH READS AS UNDER:- 1. THE ORDER OF THE LD. CIT(A) WAS ERRED IN DELET ING THE ADDITION OF RS. 29,84,000/- MADE ON ACCOUNT OF ACCOMMODATION ENTRIES BY THE AO. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS ERRED IN DELETING THE ADDITION BY OBSERVING THA T NO OPPORTUNITY OF CROSS EXAMINATION WAS ALLOWED TO THE ASSESSEE BY IGNORING THE FACTS BROUGHT ON RECORD BY THE AO THAT CROSS EXAMINATION WAS NOT POSSIBLE PARTICULARL Y WHEN THE ASSESSEE DID NOT PROVIDE THE CORRECT ADDRESS OF THE PARTIES TO WHOM ALLEGED SALE OF SHARE WAS MADE. 3. THAT THE ORDER OF CIT(A) IS ERRONEOUS AND IS NOT TENABLE ON FACTS AND IN LAW. 4. THAT THE GROUNDS OF APPEAL ARE WITHOUT PREJUDICE TO EACH OTHER. 5. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR F ORGO ANY GROUND(S) OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. WE FIND THAT REVENUE IN THE GROUNDS OF APPEAL BE FORE THE TRIBUNAL HAS CHALLENGED THE DELETION OF ADDITION OF RS. 29,84,0 00/- VIDE GROUND NO. 1, AS AFORESAID. 4. FROM THE ABOVE, WE FIND THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CO NVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS CIRCULAR ARE REPRODUCE D AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : ITA NO.5904/DEL/2013 & CO NO. 315/DEL/2015 3 S NO APPEALS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED AB OVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. P ENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORI TIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE PRESENT APPE AL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT AP PEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCT IONS. 6. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE WIT HDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALSO OF THE VIE W THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. ASSESSEES CROSS OBJECTION 7. AS FAR AS ASSESSEES CROSS OBJECTION IS CONCERNE D, THE SAME IS ONLY SUPPORTIVE THE LD. CIT(A)S ORDER. SINCE WE HAVE DISMISSED THE APPEAL OF THE REVENUE AS AFORESAID, HENCE, THE CROSS OBJECTION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND DISMISSED AS SUCH. ITA NO.5904/DEL/2013 & CO NO. 315/DEL/2015 4 8. IN THE RESULT, THE REVENUES APPEAL AS WELL AS ASSESSEES CROSS OBJECTION STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12/05/2016. SD/- SD/- (J.S. REDDY) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 12/5/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSITANT REGISTRAR ITA NO.5904/DEL/2013 & CO NO. 315/DEL/2015 5