DCIT, Central Circle-26, New Delhi V. Anurag Dalmia, New Delhi

ITA 6520/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5628 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 27-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOYAL
• Keywords: Notional interest; Tax effect
• Section: 271(1)(c); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.AS. NO.6516/DEL/2017 TO 6521/DEL/2017 ASSESSMENT YEARS: 2006-2007 TO 2011-12 AND I.T.AS NO. 6539/DEL/2017 TO 6541/DEL/2017 ASSESSMENT YEARS: 2009-2010 TO 2011-12 DCIT, CENTRAL CIRCLE-26, NEW DELHI. VS. ANURAG DALMIA, 2 ND FLOOR, INDRAPRAKASH BUILDING, 21 BARAKHAMBA ROAD, NEW DELHI. TAN/PAN: AAACL7361E (APPELLANT) (RESPONDENT) COS NO. 6 & 7/DEL/2017 (ARISING OUT OF ITAS NO.6516/DEL/2017 & 6517/DEL/201 7) ASSESSMENT YEARS: 2006-2007 & 2007-08 ANURAG DALMIA, 2 ND FLOOR, INDRAPRAKASH BUILDING, 21 BARAKHAMBA ROAD, NEW DELHI. VS. DCIT, CENTRAL CIRCLE-26, NEW DELHI. TAN/PAN: AAACL7361E (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI SANJAY GOYAL, CIT-DR AND MS. RAKHI VIMAL, SR.D.R. RESPONDENT BY: SHRI V.K. BINDAL, CA DATE OF HEARING: 30 09 2020 DATE OF PRONOUNCEMENT: 30 09 2020 O R D E R PER AMIT SHUKLA, JUDICIAL MEMBER THE AFORESAID APPEALS HAVE BEEN FILED BY THE REVENU E AS WELL AS CROSS OBJECTIONS BY THE ASSESSEE AGAINST TH E SEPARATE I.T.A. NO.6516 TO 6521/DEL/2017, 6539 TO 6541/DEL/2 017 & CO NO.6, 7/DEL/2017 2 IMPUGNED ORDERS DATED 11.08.2017 PASSED BY COMMISSI ONER OF INCOME TAX (APPEALS)-XXIX, NEW DELHI FOR ASSESSM ENT YEAR 2006-07; 11.08.2017 PASSED BY COMMISSIONER OF INCOM E TAX (APPEALS)-XXIX, NEW DELHI FOR ASSESSMENT YEAR 2007- 08; DATED 25.08.2017 BY COMMISSIONER OF INCOME TAX (APP EALS)- XXIX, NEW DELHI FOR ASSESSMENT YEARS 2008-09, DATED 31.03.2017 BY COMMISSIONER OF INCOME TAX (APPEALS)- XXIX, NEW DELHI FOR ASSESSMENT YEAR 2009-10; DATED 31.03. 2017 BY COMMISSIONER OF INCOME TAX (APPEALS)-XXIX, NEW DELH I FOR ASSESSMENT YEAR 2010-11; DATED 31.03.2017 BY COMMISSIONER OF INCOME TAX (APPEALS)-XXIX, NEW DELH I FOR ASSESSMENT YEAR 2011-12. 2. BEFORE US, LD. COUNSEL FOR THE ASSESSEE SUBMITTE D THAT THE TOTAL DISPUTED AMOUNT AS RAISED IN THE REVENUE S APPEALS ON WHICH THE TOTAL TAX EFFECT IS MUCH BELOW THE MON ETARY PRESCRIBED LIMIT OF RS.50 LAC AS PER CBDT CIRCULAR NO.17/2019 DATED 08.08.2019, THEREFORE, THE APPEALS OF THE REVENUE IS NOT MAINTAINABLE. IN SUPPORT OF FOLLOWIN G COMPUTATION OF TAX EFFECT HAS BEEN GIVEN. ANURAG DALMIA STATUS OF VARIOUS APPEALS ASSESSMENT YEAR PARTICULARS 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2014-15 ITAT APPEAL NO. 6516/D/17 6517/D/17 6539/D/17 6540/D/17 6541/DEL/17 6542/D/17 CIT(A) ORDER PASSED ON 11/08/17 11/08/17 25/08/17 25/08/17 25/08/17 25/08 /17 DELETING THE ADDITION FOR NOTIONAL INTEREST ON THE BALANCE IN ALLEGED FOREIGN BANK ACCOUNT OF THE ASSESSEE 4,88,816 25,81,034 1,10,52,787 1,18,54,895 1,18,50,695 1,78,28,485 TAX EFFECT @ 33.99% OF ADDITION 1,66,149 8,77,293 37,56,842 40,29,479 40,28,051 60 ,59,902 6518/D/17 6519/D/17 6520/DEL/17 6521/D/17 CIT(A) ORDER PASSED ON 11/08/17 11/08/17 11/08/17 11/08/17 I.T.A. NO.6516 TO 6521/DEL/2017, 6539 TO 6541/DEL/2 017 & CO NO.6, 7/DEL/2017 3 CANCELLING THE PENALTY LEVIED ON THE SAID ADDITION U/S 271(1)(C) OF THE ACT 31,61,394 37,56,843 36,66,163 36,61,861 TAX EFFECT (AMOUNT OF PENALTY) (LOW TAX EFFECT IN A LL THE YEARS) 31,61,394 37,56,843 36,66,163 36,61,861 NOTE 1 : QUANTUM APPEAL FOR THE AY 2008-09 HAS BEEN DISMISSED BY THE HONBLE ITAT DUE TO LOW TAX EFFEC T. NOTE 2: ALL THE ABOVE APPEALS EXCEPT FOR THE AY 201 4-15 SHOULD BE DISMISSED DUE TO LOW TAX EFFECT AND FOR THE AY 2014-15 AS THE ADDITION IS JUST ON ESTIMATED BASIS WITH NO EVIDENCE AT ALL OF ANY SUCH INCOME. 3. FURTHER CBDT VIDE CLARIFICATION DATED 20.08.2019 HAS CLARIFIED THAT THE AFORESAID CIRCULAR WILL APPLY TO ALL PENDING APPEALS ALSO. ACCORDINGLY, THE APPEALS OF THE REVEN UE ARE DISMISSED AS NON MAINTAINABLE AS THE TAX EFFECT IS BELOW RS.50 LAKHS. 4. SINCE, THE APPEALS OF THE REVENUE ARE DISMISSED ON LOW TAX EFFECT; THEREFORE, THE CROSS OBJECTIONS OF THE ASSESSEE DO NOT SURVIVE AS HAVE BECOME INFRUCTUOUS. THUS, THE CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED AS HAVE BECOME INFRUC TUOUS. 5. IN THE RESULT, THE APPEALS OF THE REVENUE AND TH E CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH SEPTEMBER, 2020 SD/- SD/- [PRASHANT MAHARISHI] [AMIT SHUKLA] [ACCOUNTANT MEMBER] JUDICIAL MEMBER DATED: 30/09/2020 PKK: