DCIT, Haridwar V. Saraswati Dynamics Pvt. Ltd., Roorkee

ITA 6242/DEL/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7424 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 09-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI G.D. AGRAWAL, HONBLE VICE PR ESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 6242/DEL/2017 AY: 20 13-14 DCIT, VS M/S SARASWATI DYNAMICS P. LTD., CIRCLE, HARIDWAR, C-7, INDUSTRIAL ESTATE, D-29 & 30, RAMNAGAR, ROORKEE. OLD INDUSTRIAL AREA, HARDWAR. (PAN: AAECS6262M) (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI J.K. MISHRA, CIT DR ASSESSEE BY : NONE DATE OF HEARING: 15.01.2019 DATE OF PRONOUNCEMENT: 16.01.2019 ORDER PER SUDHANSHU SRIVASTAVA, J.M. THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER PASSED BY THE LD. CIT(A) DEHRADUN DATED 25.07.2017 FOR A.Y. 2013-14. 1.1 THE DEPARTMENT HAS FILED THE ABOVE APPEAL AGAI NST DELETION OF ADDITION OF RS. 46,23,967/- MADE BY ASSESSING OF FICER ON ACCOUNT OF AMC/SERVICE CHARGES. ADMITTEDLY, THE TA X EFFECT IN THIS APPEAL IS BELOW THE MONETARY LIMIT OF RS. 20 L AKHS. 2.1 IN TERMS OF CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 READ WITH SECTION 268 A OF THE INCOME TAX ACT, 1961, THIS APPEAL BY THE REVENUE SHOULD HAVE BEEN WITHDRAWN OR SHOULD NOT HAVE BEEN PRESSED BY THE REVENUE. ITA NO. 6242/DEL/2017 ASSESSMENT YEAR 2013-14 2 2.2 WE ALSO NOTE THAT VIDE CBDTS INSTRUCTIONS DA TED 20.08.2018 BEARING F.NO. 279/MISC.142/2007-ITJ(PT), THERE HAS BEEN AN AMENDMENT TO PARA 10 OF THE CIRCULAR NO. 3 OF 2018 DATED 11.07.2018 WHEREIN THE SAID PARA 10 HAS BEEN AMENDED AS UNDER:- 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SP ECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT. (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISION S OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARDS 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 INCOME/UNDISCLOSED FOREIGN ASSETS (INCLUDING FINANC IAL ASSETS)/UNDISCLOSED FOREIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FR OM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT A GENCIES 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. 2.3 HOWEVER, AFTER GOING THROUGH THE RECORDS BEFO RE US, WE ARE OF THE OPINION THAT APPARENTLY THE DEPARTMENTS APP EAL IS NOT COVERED BY ANY OF THE AFORESAID EXCEPTIONS AS ENUME RATED IN THE AFORESAID AMENDMENT TO THE INSTRUCTIONS AND, THEREF ORE, DELAYING THE DISPOSAL OF THE APPEAL BY WAITING FOR THE REPOR T FROM THE FIELD ITA NO. 6242/DEL/2017 ASSESSMENT YEAR 2013-14 3 OFFICERS WILL NOT BE IN TRUE SPIRIT OF THE CIRCULAR . ACCORDINGLY, WE DEEM IT FIT TO TREAT THIS APPEAL AS DISMISSED WITH THE LIBERTY TO THE DEPARTMENT TO SEEK RECALL OF THIS ORDER BY FILING A MISC. APPLICATION BEFORE US IN CASE THE DEPARTMENTS APPE AL FALLS IN ANY OF THE ABOVE EXCEPTIONS. ACCORDINGLY, IN VIEW OF TH E CBDTS CIRCULAR NO. 3 OF 2018 DATED 11.7.2018, THE APPEAL BY THE REVENUE IS DISMISSED IN LIMINE. 3. IN THE RESULT, THE APPEAL OF THE REVENUE STA NDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JANUARY, 2019. SD/- SD/- (G.D. AGRAWAL) (SUDHANSHU SRIVASTAVA) PRESIDENT JUDICIAL MEMBER DATED: 16 TH JANUARY, 2019 GS COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER ASSTT. REGISTRAR ITA NO. 6242/DEL/2017 ASSESSMENT YEAR 2013-14 4 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 1