DCIT, Meerut V. M/s. Nipro Glass India Pvt. Ltd., Meerut

ITA 6258/DEL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6792 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKHI BIM AL
• Keywords: Unexplained investment; Business income; Tax effect; Set aside
• Section: 133(6); 254(2); 69

Judgement Text

ITA NO.- 6258/DEL/2016. M/S NIPRO GLASS INDIA PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBE R AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 6258/DEL/2016 ( ASSESSMENT YEAR: 2011-12) DY. COMMISSIONER OF INCOME TAX, CIRCLE-2, MEERUT. VS. M/S NIPRO GLASS INDIA PVT. LTD., (NOW KNOWN AS M/S NIPRO PHARMAPACKAGING INDIA PVT. LTD., PLOT NO. 76, VILLAGE FITKARI MAWANA ROAD, MEERUT. PAN NO: AADCN1869Q APPELLANT RESPONDENT REVENUE BY : SMT. RAKHI BIMAL, SR. DR ASSESSEE BY : NONE PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS), MEERUT, [LD. CIT(A), FOR SH ORT], DATED 02.09.2016 FOR ASSESSMENT YEAR 2011-12. GROUNDS TAKEN IN THIS APP EAL OF REVENUE ARE AS UNDER: 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND FACT I N DELETING THE ADDITION OF RS. 12,10,544/- MADE BY THE A.O. U/S 69 OF THE I.T. ACT , 1961 ON A/C OF UNEXPLAINED INVESTMENT DUE TO UNVERIFIED ADVANCES TO PARTIES SH OWN BY THE ASSESSEE, TAKING TECHNICAL GROUNDS THAT SEC. 69 OF THE ACT WAS NOT A PPLICABLE AND ALSO IGNORING ITA NO.- 6258/DEL/2016. M/S NIPRO GLASS INDIA PVT. LTD. PAGE 2 OF 4 A.O.S REASONING THAT NO REPLY WAS RECEIVED IN RESP ONSE TO THE NOTICE U/S 133(6) OF THE I.T. ACT, 1961. 2. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND FACT I N DELETING THE ADDITION OF RS. 55,28,430/- MADE BY THE A.O. ON ACCOUNT OF 5% N.P. OF TOTAL BUSINESS RECEIPTS AFTER REJECTING BOOKS OF A/C U/S 145(3) OF THE ACT, OBSERVING THAT THE ADDITION HAS BEEN MADE OF NP RATHER THAN GP WHEREAS OTHER ADDITI ONS HAVE ALSO BEEN MADE, IGNORING DETAILED REASONING OF A.O. FOR REJECTION O F BOOKS AND ALSO IGNORING THAT OTHER ADDITIONS OF CREDITORS AND ADVANCES TO PARTIE S WERE NOT IN THE NATURE OF ADDITIONS UNDER THE HEAD OF EXPENDITURE, THEREFORE ADDITION OF NP WAS JUSTIFIED. OTHERWISE ALSO THE RATE OF 5% N.P. WAS QUITE REASON ABLE IN VIEW OF FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE , THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), MEERUT MAY BE SET ASIDE AND THAT OF THE AO BE RESTORED. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD, MODIFY A ND OR DELETE ANY GROUND(S) OF APPEAL. (B) AT THE OUTSET, LEARNED SENIOR DEPARTMENTAL REPRESEN TATIVE [LD. SR. DR, FOR SHORT] BROUGHT TO OUR NOTICE, AT THE TIME OF HEARIN G THAT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,000/-. VIDE RECENT CBDT CIRCULAR N O. 17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11. 07.2018, MINIMUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCO ME TAX APPELLATE 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 CLARIFIED BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS A LSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. HAVING REGARD TO THE AFORESAID, THE LD. S R. DR FOR REVENUE DID NOT PRESS THE APPEAL. WE ARE ALSO OF THE VIEW THAT THIS APPEAL IS NOT MAINTAINABLE HAVING REGARD TO AFORESAID CBDT CIRCULAR NO. 17/2019 DATED 08.08.201 9 READ WITH AFORESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CL ARIFICATION DATED 20/08/2019. ITA NO.- 6258/DEL/2016. M/S NIPRO GLASS INDIA PVT. LTD. PAGE 3 OF 4 ACCORDINGLY, THIS APPEAL IS DISMISSED BEING NOT PRE SSED, AND ALSO BEING NOT MAINTAINABLE. (C) BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) OF INCOME TAX ACT, 1961 SEEKING FOR RESTORATION OF THIS APPEAL IF IT IS FOUND THAT APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.201 9 AND 11.07.2018. (D) IN THE RESULT, THIS APPEAL BY REVENUE IS DISMISSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HE ARING ON THE DATE OF HEARING. NOW, THIS WRITTEN ORDER IS PRONOUNCED IN OPEN COURT, ON 18/10/2019. SD/- SD/- (SUSHMA CHOWLA) (ANADEE NATH MISSH RA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 18/10/2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 6258/DEL/2016. M/S NIPRO GLASS INDIA PVT. LTD. PAGE 4 OF 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. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE 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