DCIT, New Delhi V. M/s. Elymer International Pvt. Ltd., New Delhi

ITA 6237/DEL/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 4423 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Tax effect
• Section: 254(2); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: B: NEW DELHI) BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT ME MBER ITA NO:- 6237/DEL/2016 (ASSESSMENT YEAR: 2006-07) ACIT, CIRCLE - 8 (2), NEW DELHI VS M/S ELYMER INTERNATIONAL PVT. LTD. 37, BUNGLOW ROAD, KAMLA NAGAR, NEW DELHI-110007 PAN-AAACE3789P APPELLANT RESPONDENT APPELLANT BY MS. ASHIMA NEB , SR. DR RESPONDENT BY NONE ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE ORDER DATED 20.09.2016 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS), NEW DELHI [IN SHORT, LD. CIT(A)] PERTA INING TO ASSESSMENT YEAR 2006-07. THE REVENUE HAS RAISED FOL LOWING GROUNDS OF APPEAL:- (1) LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED ON L AW AND FACTS IN ANNULLING THE RE-ASSESSMENT PROCEEDINGS. (2) LD. CIT(A) FAILED TO APPRECIATE THAT THE AO DID NOT FORM ANY OPINION ABOUT THE INDUSTRIAL UNDERTAKING AS TO WHETHER IT W AS A SMALL SCALE INDUSTRIAL UNDERTAKING IN THE ORIGINAL ASSESSMENT. (3) LD. CIT(A) FAILED TO APPRECIATE THAT THE DISCOVERY OF INVESTMENT IN PLANT & MACHINERY AS AT THE END OF THE AY 2005-06 I MMEDIATELY PRECEDING THE RELEVANT ASSESSMENT YEAR CANNOT BE SA ID TO BE MATERIAL FACTS DISCLOSED IN VIEW OF EXPLANATION 1 T O SECTION 147 OF ITA NO: - 6237/DEL/2016 PAGE | 2 THE I.T. ACT. [B]. NONE APPEARED ON BEHALF OF THE ASSESSMENT. AT THE OUTSET, THE LEARNED DR STATED AT THE TIME OF HEARING THAT T AX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,000./-. VIDE RECENT CBDT CIRCULAR NO.17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIMI T OF TAX EFFECT OF FILING OF APPEALS BY REVENUE IN INCOME TAX APPEL LATE TRIBUNAL ('ITAT', FOR SHORT) HAS BEEN ENHANCED TO RS. 50,00, 000/-. IN A SUBSEQUENT CLARIFICATION ISSUED BY CBDT VIDE F.NO. 279/MISC/M- 93/2018-ITJ, DATED 20/08/2019, IT HAS BEEN CLARIFIE D BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS ALSO A PPLICABLE TO ALL PENDING APPEALS IN ITAT. THEREFORE, IN VIEW OF THE FOREGOING, WE ARE OF THE VIEW THAT THIS APPEAL FILED BY REVENUE IS NO T MAINTAINABLE. THE LEARNED DEPARTMENTAL REPRESENTATIVE ALSO DID NO T PRESS THE APPEAL. ACCORDINGLY, THIS APPEAL IS DISMISSED BEING NOT PRESSED, AND ALSO NOT MAINTAINABLE, HAVING REGARD TO AFORESAID C BDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CB DT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATI ON DATED 20/08/2019. [C]. BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL B E AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THE APPEAL IF IT IS FOUND THAT THIS APPEAL OF REVENUE IS ITA NO: - 6237/DEL/2016 PAGE | 3 NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07.2018. [D]. IN THE RESULT, THE APPEAL BY REVENUE IS DISMI SSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AF TER CONCLUSION OF HEARING ON THE DATE OF HEARING. NOW, THIS WRITTE N ORDER IS PRONOUNCED IN OPEN COURT ON 27.11.2019. SD/- SD/- (SUDHANSHU SRIVASTAVA) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27/11/2019 SH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI