ITO, New Delhi V. M/s. MSS Cosmetics Pvt. Ltd., Delhi

ITA 649/DEL/2015

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2330 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2005-2006
• Appeal Filed On: 02-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Additional evidence; Tax effect
• Section: 254(2); 68; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT ME MBER ITA NO:- 649/DEL/2015 (ASSESSMENT YEAR: 2005-06) INCOME TAX OFFICER WARD-17(2), NEW DELHI VS M/S MSS COSMETICS PVT. LTD., SHOP NO. 10, 32-C, BR COMPLEX, NEAR UNA ENCLAVE, MAYUR VIHAR, DELHI-110091 PAN-AAECM0929K APPELLANT RESPONDENT APPELLANT BY MS. RAKHI VIMAL , SR. DR RESPONDENT BY SH. P.C. YADAV, ADV OCATE ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE ORDER DATED 14.11.2014 PASSED BY LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-IX, NEW DELHI [IN SHORT, LD.CIT(A)] PERTAINING TO ASSESSMENT YEAR 2005-06. IN THIS APPEAL, THE TAX E FFECT IS LESS THAN THE MONETARY LIMIT FIXED BY THE CENTRAL BOARD OF DI RECT TAXES (IN SHORT CBDT) IN ITS CIRCULAR NO.17/2009 DATED 08.0 8.2019. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- (1) WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITIONS OF RS. 2 6,00,000/- MADE BY THE AO ON ACCOUNT OF UNEXPLAINED INVESTMENT U/S 69 OF THE IT ACT, 1961? ITA NO: -649/DEL/2015 PAGE | 2 (2) WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION TO THE TU NE OF RS. 81,72,077/- MADE BY THE AO ON ACCOUNT OF UNEXPLAINE D CREDITS U/S 68 OF THE I.T. ACT, 1961? (3) WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN ESTIMATING EXPENSES OF THE ASSE SSEE AT 75% OF RECEIPTS WITHOUT ANY BASIS AND WITHOUT VERIFYING AN Y DETAIL OF EXPENSE CLAIMED? (4) WHETHER ON FACTS AND IN CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) HAS ERRED IN ADMITTING ADDITIONAL EVIDENCE U NDER RULE 46A WHEN THE CASE OF THE ASSESSEE DID NOT FALL UNDER AN Y OF THE EXCEPTION PROVIDED THEREIN? (5) THAT THE ORDER OF THE LD. CIT(A) IS ERRONEOUS AND I S NOT TENABLE ON FACTS AND IN LAW. [B]. AT THE OUTSET, IT WAS BROUGHT TO OUR NOTICE B Y LEARNED COUNSEL FOR THE ASSESSEE, AT THE TIME OF HEARING, THAT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,000./-. VIDE RECENT CBDT CIRCULAR NO.17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.2018, MINIMUM THRESHOLD LIMI T OF TAX EFFECT OF FILING OF APPEALS BY REVENUE IN INCOME TAX APPEL LATE 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 CLARIFIE D BY CBDT THAT THE AFORESAID REVISED MONETARY LIMIT IS ALSO A PPLICABLE TO ALL PENDING APPEALS IN ITAT. THEREFORE, IN VIEW OF THE FOREGOING, WE ARE OF THE VIEW THAT THIS APPEAL FILED BY REVENUE IS NO T MAINTAINABLE. THE LEARNED DEPARTMENTAL REPRESENTATIVE ALSO DID NO T PRESS THE APPEAL. ACCORDINGLY, THIS APPEAL IS DISMISSED BEING NOT PRESSED, AND ALSO NOT MAINTAINABLE, HAVING REGARD TO AFORESAID C BDT CIRCULAR ITA NO: -649/DEL/2015 PAGE | 3 NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CB DT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATI ON DATED 20/08/2019. [C]. BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL B E AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THE APPEAL IF IT IS FOUND THAT THIS APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07.2018. [D]. IN THE RESULT, THE APPEAL BY REVENUE IS DISMI SSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AF TER CONCLUSION OF HEARING ON THE DATE OF HEARING. NOW, THIS WRITTE N ORDER IS PRONOUNCED IN OPEN COURT ON SD/- SD/- (H.S. SIDHU) (ANADEE NA TH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 06/12/2019 SH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO: -649/DEL/2015 PAGE | 4 DRAFT DICTATED 05.12.2019 DRAFT PLACED BEFORE AUTHOR APPROVED DRAFT COMES TO THE SR.PS/PS ORDER SIGNED AND PRONOUNCED ON FILE SENT TO THE BENCH CLERK 06.12.2019 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER. DATE OF UPLOADING ON THE WEBSITE 06.12.2019