Deepak Sharma, Delhi V. DCIT, New Delhi

ITA 6250/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96993 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-08-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 17-12-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT GOEL
• Assessee Lawyers: MD MOHSIN ALAM
• Keywords: Unexplained cash credit; Deemed dividend; Tax effect
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DELHI BEFORE SHRI T.S.KAPOOR, ACCOUNTANT MEMBER AND SHRI C.M. GARG, JUDICIAL MEMBER I.T.A. N O. 3277/DEL/2012 ASSTT. YEAR : 2002-03 ACIT, VS SHRI DEEPAK SHARM A, CENTRAL CIRCLE-22, 8, LOCAL SHOPP ING CENTRE, NEW DELHI. IIND/IIIRD FLOOR, VARDHMAN SIDDHARTH PLAZA, SAVITA VIHAR, NEW DELHI-110092 (PAN: AUDUPS5329R) I.T.A. NO. 6 250/DEL/2012 ASSTT. YEAR : 2002-03 SHRI DEEPAK SHARMA, VS DCI T, CC-22, NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI MD. MOHSIN ALAM CIT DR RESPONDENT BY: SHRI AMIT GOEL, CA O R D E R PER BENCH THESE CROSS APPEALS HAVE BEEN PREFERRED AGAINST TH E ORDER OF THE CIT(A)- III, DELHI DATED 02.4.2012 IN APPEAL NO. 252/08-09 FOR AY 2002-03. DATE OF HEARING 17.08.2015 DATE OF PRONOUNCEMENT 25 .08.2015 ITA NO. 3277 & 6250/DEL/12 ASSTT.YEAR: 2002-03 2 I.T.A. NO. 3277/DEL/2012 (REVENUES APPEAL) 2. GROUND NO. 2 & 3 OF THE REVENUE IN ARE GENERAL I N NATURE WHICH NEED NO ADJUDICATION. THE REMAINING GROUND OF THE REVENUE READ AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING TH E ADDITION OF RS. 11,00,000/- MADE BY THE ASSESSING OFFICER ON A CCOUNT OF UNEXPLAINED CASH CREDIT. 3. GROUNDS RAISED IN ASSESSEES APPEAL IN I.T.A. NO . 6250/DEL/2012 READ AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LA W, THE COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN CONFIR MING THE ACTION OF ASSESSING OFFICER OF MAKING ADDITION OF R S.3,00,000/- ON ACCOUNT OF ALLEGED DEEMED DIVIDEND. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE COMMISSIO NER OF INCOME TAX SHOULD HAVE DELETED THE ADDITION OF RS. 3,00,000/- MADE BY THE ASSESSING OFFICER. 2. THE ADDITION OF RS.3,00,000/- MADE BY THE ASSES SING OFFICER AND CONFIRMED BY CIT(A) IS BEYOND THE JURIS DICTION OF PROVISIONS OF SECTION 153A OF INCOME TAX ACT, 1961. 3. OIL THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IS BEYOND THE JURISDICTION OF SECTION 153A OF INCOME TAX ACT, 196 1. 4. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LA W, THE VARIOUS ADDITIONS MADE IN THE ASSESSMENT ORDER ARE BEYOND T HE JURISDICTION OF SECTION 153A OF INCOME TAX ACT, 196 1 AND THE CIT(A) SHOULD HAVE HELD SO. 4. WE HAVE HEARD ARGUMENTS OF BOTH THE SIDES AND CA REFULLY PERUSED THE RELEVANT MATERIAL PLACED ON RECORD. LD. AR PLACED CALCULATION OF TAX EFFECT PERTAINING TO REVENUE APPEAL AND SUBMITTED THAT TOT AL TAX EFFECT IN THIS CASE IS ITA NO. 3277 & 6250/DEL/12 ASSTT.YEAR: 2002-03 3 LESS THAN RS. 4 LAKH VIZ. RS.3,36,600. LD. AR FURT HER SUBMITTED THAT IN VIEW OF RECENT INSTRUCTION NO. 5/14 ISSUED BY CBDT ON 10.7. 14 REVISING THE LIMITATION FOR FILING APPEAL BY THE REVENUE BEFORE ITAT FIXING THE TAX EFFECT LIMIT AT RS. 4 LAKH OR MORE, THE APPEAL OF THE REVENUE IS NOT MAIN TAINABLE AND LIABLE TO BE DISMISSED IN LIMINE. ON SPECIFIC QUERY FROM THE BE NCH, LD. DR FAIRLY ACCEPTED THAT THE TOTAL TAX EFFECT IN THIS APPEAL IS LESS TH AN RS. 4 LAKH. 5. LD. COUNSEL OF THE ASSESSEE PLACING RELIANCE ON THE RECENT DECISION OF HONBLE HIGH COURT OF DELHI IN CIT VS M/S P.S. JAIN AND CO. DATED 2.8.2010 IN ITR 179/1991 SUBMITTED THAT THE RECENT BOARD INSTRU CTION REVISING THE MONETARY LIMIT TO RS. 4 LAKH FOR FILING THE APPEAL BEFORE TH E ITAT ON INCOME TAX MATTERS IS VERY MUCH APPLICABLE TO THE OLD REFERENCES WHICH AR E STILL PENDING UNDECIDED BEFORE THE TRIBUNAL. LD. DR FAIRLY ACCEPTED THAT T HE BOARD INSTRUCTION NO. 5/2014 ISSUED BY CBDT ON 10.7.2014 IS APPLICABLE TO THE PRESENT CASE. 6. IN VIEW OF ABOVE NOTED SUBMISSIONS OF BOTH THE S IDES, WE ARE INCLINED TO HOLD THAT THERE IS NO JUSTIFICATION TO PROCEED WITH THE CASES HAVING TAX EFFECT OF LESS THAN RS. 4 LAKH. IN VIEW OF ABOVE, RESPECTFUL LY FOLLOWING THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT OF DELHI IN THE C ASE OF CIT VS M/S P.S. JAIN & CO. (SUPRA), WE HOLD THAT THIS BEING A LOW TAX EF FECT CASE, THE APPEAL OF THE REVENUE DESERVES TO BE DISMISSED AND WE DISMISS THE SAME IN LIMINE WITHOUT GOING INTO MERITS. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ITA NO. 3277 & 6250/DEL/12 ASSTT.YEAR: 2002-03 4 I.T.A. NO. 6250/DEL/2012 (ASSESSEES APPEAL) 8. LD. AR SUBMITTED THAT THE ASSESSEE WISHES TO WIT HDRAW THE APPEAL AND HE MAY BE PERMITTED ACCORDINGLY. IN VIEW OF SUBMISSIO NS OF THE AR, THE ASSESSEE IS ALLOWED TO WITHDRAW THE APPEAL AND THE SAME IS D ISMISSED AS WITHDRAWN. 9. IN THE RESULT, THE APPEALS OF THE REVENUE AND TH E ASSESSEE ARE DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 25TH AUGUST 2015. SD/- SD/- (T.S.KAPOOR) (C. M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 25TH AUGUST 2015 GS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(APPEALS) 4. CIT 5. DR BY ORDER ASSISTANT REGI STRAR