ITO, New Delhi V. M/s. Anjali Leasing Ltd., Delhi

ITA 6373/DEL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7284 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 3
• Next Hearing Date: 24-08-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 02-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-3, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 6373/DEL/2015 ASSESSMENT YEAR: 2006-07 ITO, WARD 2(4), VS. M/S ANJALI LEASING LTD. NEW DELHI 1/527, KUCHA PATI RAM, SITA RAM BAZAR, DELHI 110 006 (PAN: AAACA1798A) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. F.R. MEENA, SR. DR RESPONDENT BY : NONE DATE OF HEARING : 24-08-2016 DATE OF ORDER : 31-8-2016 ORDER PER H.S. SIDHU, J.M. THIS APPEAL FILED BY THE DEPARTMENT IS DIRECTED A GAINST THE ORDER DATED 30.9.2015 OF LD. CIT(A)-I, NEW DELHI PERTAINING TO ASSESSMENT YEARS 2006-07. 2. THE GROUNDS RAISED IN BOTH THESE APPEALS READ AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITIO N OF RS. 18,10,0001- MADE BY THE A.O. ULS 68 OF THE I,T. ACT , 1961. PARTICULARLY WHEN THE ASSESSEE HAS FAILED TO FURNIS H ANY EVIDENCE TO PROVE THE GENUINENESS OF THE TRANSACTIO N. 2. THE LD. CIT(A) HAS FAILED TO APPRECIATE THE CONT RADICTORY FACT THAT CONFIRMATION FILED BY THE LENDER MIS GANAPATI FINCAP SERVICES PVT. LTD. SHOWN THAT THE ASSESSEE MADE THE INVESTMENT IN THE ABOVE COMPANY ON 16-04-2005 AND THE SAME WAS RETURNED ON 04-08-2005, WHEREAS ASSESSEE HAS CONTEN DED THAT THE SUM WAS RECEIVED FROM MIS GANAPATI FINCAP SERVI CES PVT. LTD. IN LIEU OF SALE OF SHARES OF ANOTHER COMPANY N AMELY SUPER COMPONENTS PVT. LTD. ON 25-03-2003. 3. THE LD. CIT(A) HAS FAILED TO APPRECIATE THE 'FAC T THAT THE BALANCE OF THE ASSESSEE FILED WITH RETURN OF INCOME INDICATE RS. 93.10 LACS AS ' INVESTMENT IN SHARES' WHEREAS THE O NE FILED DURING THE ASSESSMENT PROCEEDINGS SHOWS THE SAME AS 'SUNDRY RECEIVABLE' (BALANCE SHEET AS ON 31-03-2005), WHICH WERE NOT REBUTTED BY CIT(A). ITA NO. 6373/DEL/2015 2 4. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND (S) OF APPE AL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 3. IN THIS CASE, NOTICE OF HEARING TO THE ASSESSEE WAS SENT BY THE REGISTERED AD POST, IN SPITE OF THE SAME, ASSESSEE, NOR ITS AUTH ORIZED REPRESENTATIVE APPEARED TO PROSECUTE THE MATTER IN DISPUTE, NOR FILED ANY APP LICATION FOR ADJOURNMENT. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE AND THE ISSUE INVOLVED IN THE PRESENT APPEAL, I AM OF THE VIEW TH AT NO USEFUL PURPOSE WOULD BE SERVED TO ISSUE NOTICE AGAIN AND AGAIN TO THE ASSES SEE, THEREFORE, I AM DECIDING THE PRESENT APPEAL EXPARTE QUA ASSESSEE, AFTER HEAR ING THE LD. DR AND PERUSING THE RECORDS. 4. I HAVE HEARD LD. DR AND PERUSED THE MATERIAL ON RECORDS. AT THE THRESHOLD, I FIND THAT THE TAX EFFECT IN THE REVENU E APPEALS IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEALS ARE 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 CONVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS C IRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: 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 MONETA RY LIMITS PRESCRIBED ABOVE. 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. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN ITA NO. 6373/DEL/2015 3 PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L 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 P RESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 6. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, I AM OF THE VIEW THAT THE REVENUE SHOULD HAV E WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. I AM ALSO OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/8/2016. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 31/8/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR