ACIT, New Delhi V. M/s. Trading Engineers (International) Ltd., Gurgaon

ITA 646/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6986 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2008-2009
• Appeal Filed On: 03-02-2017
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH I(1) I(1) I(1) I(1) : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI PRAMOD KUMAR BEFORE SHRI PRAMOD KUMAR BEFORE SHRI PRAMOD KUMAR BEFORE SHRI PRAMOD KUMAR, ,, , VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI K. NARASIMHA CHARY SHRI K. NARASIMHA CHARY SHRI K. NARASIMHA CHARY SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO. 646/DEL/2017 646/DEL/2017 646/DEL/2017 646/DEL/2017 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008 - -- - 09 0909 09 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -76( 76( 76( 76(1), 1),1), 1), R.NO.307, AAYAKAR BHAWAN, R.NO.307, AAYAKAR BHAWAN, R.NO.307, AAYAKAR BHAWAN, R.NO.307, AAYAKAR BHAWAN, LAKSHMI NAGAR, LAKSHMI NAGAR, LAKSHMI NAGAR, LAKSHMI NAGAR, DELHI DELHI DELHI DELHI 110 092. 110 092. 110 092. 110 092. VS. VS. VS. VS. M/S TRADING ENGINEERS M/S TRADING ENGINEERS M/S TRADING ENGINEERS M/S TRADING ENGINEERS (INTERNATIONAL) LTD., (INTERNATIONAL) LTD., (INTERNATIONAL) LTD., (INTERNATIONAL) LTD., UM HOUSE, PLOT NO.35P, UM HOUSE, PLOT NO.35P, UM HOUSE, PLOT NO.35P, UM HOUSE, PLOT NO.35P, SECTOR SECTOR SECTOR SECTOR- -- -44, 44, 44, 44, GURGAON GURGAON GURGAON GURGAON 122 002. 122 002. 122 002. 122 002. PAN : AAACT3870G. PAN : AAACT3870G. PAN : AAACT3870G. PAN : AAACT3870G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIVEK BANSAL, ADVOCATE. RESPONDENT BY : MS. NIDHI SHARMA, SENIOR DR. DATE OF HEARING : 31.07.2019 31.07.2019 31.07.2019 31.07.2019 DATE OF PRONOUNCEMENT : 31.07.2019 31.07.2019 31.07.2019 31.07.2019 ORDER ORDER ORDER ORDER PER PRAMOD KUMAR PER PRAMOD KUMAR PER PRAMOD KUMAR PER PRAMOD KUMAR, , , , VP VPVP VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2008-09 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-41, NE W DELHI DATED 3 RD NOVEMBER, 2016. 2. AT THE TIME OF HEARING BEFORE US, WE FIND PRIMA-FACIE THAT THE APPEAL OF THE REVENUE IS HIT BY CBDT INSTRUCTION NO .3 OF 2018 DATED 11.08.2018 WHEREBY THE BOARD HAS PROHIBITED ITS SUB ORDINATE AUTHORITIES FROM FILING OF THE APPEAL BEFORE THE TR IBUNAL AGAINST THE ORDER OF THE CIT(A) WHERE THE TAX EFFECT BY VIRTUE OF THE RELIEF GIVEN BY THE CIT(A) IS LESS THAN `20 LAKHS. THE INSTRUCTION S HAVE BEEN MADE APPLICABLE WITH RETROSPECTIVE EFFECT, MEANING THERE BY, THESE INSTRUCTIONS ARE APPLICABLE ON PENDING APPEALS ALSO . IN THE PRESENT CASE, THE TAX EFFECT ON THE QUANTUM DISPUTED BY THE REVENUE DOES NOT EXCEED RS.20 LAKHS. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS ITA-646/DEL/2017 2 HIT BY THE CBDT CIRCULAR AND HENCE NOT MAINTAINABLE . FURTHER, LEARNED DEPARTMENTAL REPRESENTATIVE HAS NOT POINTED OUT WHE THER THE CASE OF THE REVENUE FALLS WITHIN THE AMBIT OF EXCEPTIONS PR OVIDED IN THE CIRCULAR OR NOT. THUS, KEEPING IN VIEW THE ABOVE C BDT CIRCULAR AND PROVISIONS OF SECTION 268A OF THE INCOME TAX ACT, W E ARE OF THE VIEW THAT THE PRESENT APPEAL OF THE REVENUE DESERVES TO BE DISMISSED. IT IS ACCORDINGLY DISMISSED. 3. HOWEVER, IT IS OBSERVED THAT, IN CASE ON RE-VERI FICATION AT THE END OF THE ASSESSING OFFICER IT COMES TO THE NOTICE THA T THE TAX EFFECT IS MORE OR REVENUES CASE FALLS WITHIN THE AMBIT OF EX CEPTIONS PROVIDED IN THE CIRCULAR, THEN THE DEPARTMENT WILL BE AT LIB ERTY TO APPROACH THE TRIBUNAL FOR RECALL OF THIS ORDER. SUCH APPLICATIO N SHOULD BE FILED WITHIN THE TIME PERIOD PRESCRIBED IN THE ACT. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2019. SD/- SD/- ( (( ( K. NARASIMHA CHARY K. NARASIMHA CHARY K. NARASIMHA CHARY K. NARASIMHA CHARY ) )) ) (PRAMOD KUMAR (PRAMOD KUMAR (PRAMOD KUMAR (PRAMOD KUMAR ) )) ) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME T AX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -76(1), R.NO.307, AAYAKAR BHAWAN, 76(1), R.NO.307, AAYAKAR BHAWAN, 76(1), R.NO.307, AAYAKAR BHAWAN, 76(1), R.NO.307, AAYAKAR BHAWAN, LAKSHMI NAGAR, DELHI LAKSHMI NAGAR, DELHI LAKSHMI NAGAR, DELHI LAKSHMI NAGAR, DELHI 110 092. 110 092. 110 092. 110 092. 2. RESPONDENT : M/S TRADING ENGINEERS (INTERNATIONA L) LTD., M/S TRADING ENGINEERS (INTERNATIONAL) LTD., M/S TRADING ENGINEERS (INTERNATIONAL) LTD., M/S TRADING ENGINEERS (INTERNATIONAL) LTD., UM HOUSE, PLOT NO.35P, SECTOR UM HOUSE, PLOT NO.35P, SECTOR UM HOUSE, PLOT NO.35P, SECTOR UM HOUSE, PLOT NO.35P, SECTOR- -- -44, 44, 44, 44, GURGAON GURGAON GURGAON GURGAON 122 002. 122 002. 122 002. 122 002. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR