DCIT, New Delhi V. M/s. Menlo Worldwide Forwarding India Pvt. Ltd., New Delhi

ITA 6680/DEL/2014

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2460 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K AGGARWAL
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) BEFORE H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT ME MBER ITA NO:- 6680/DEL/2014 (ASSESSMENT YEAR: 2007-08) THE DCIT, CIRCLE - 6(1), NEW DELHI VS M/S MENLO WORLDWIDE FORWARDING INDIA PVT. LTD., 139/140, KAPASHERA, BIJWASAN ROAD, NEW DELHI PAN-AAACE2236R APPELLANT RESPONDENT APPELLANT BY MS. RAKHI VIMAL , SR. DR RESPONDENT BY SH. S.K. AGGARWAL , C.A. ORDER PER ANADEE NATH MISSHRA, AM [A]. THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE ORDER DATED 19.09.2014 PASSED BY LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-IX, NEW DELHI [IN SHORT, LD.CIT(A)] PERTAINING TO ASSESSMENT YEAR 2007-08. 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:- I. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 68 ,43,884/- ON ACCOUNT OF LONG TERM CAPITAL GAIN AND TREATED THE S AME AS STCL AMOUNTING TO RS. 1022451/- IGNORING THE FACT THAT T HE AO HAS NOTED ITA NO: - 6680/DEL/2014 PAGE | 2 IN ASSESSMENT ORDER THAT THE SALE WAS SLUMP SALE AN D IS ELIGIBLE FOR LONG TERM CAPITAL GAIN. II. THAT THE ORDER OF THE LD. CIT(A) IS ERRONEOUS A ND IS NOT TENABLE ON FACTS AND IN LAW. III. THAT THE GROUNDS OF APPEAL ARE WITHOUT PREJUDI CE TO EACH OTHER. B]. AT THE OUTSET, IT WAS BROUGHT TO THE NOTICE BY LEARNED AUTHORIZED REPRESENTATIVE OF THE ASSESSEE, AT THE T IME OF HEARING THAT TAX EFFECT IN THIS APPEAL IS BELOW RS. 50,00,0 00./-. VIDE RECENT CBDT CIRCULAR NO.17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIRCULAR NO. 3 OF 2018, DATED 11.07.2018, MINI MUM THRESHOLD LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL ('ITAT', FOR SHORT) H AS BEEN ENHANCED TO RS. 50,00,000/-. IN A SUBSEQUENT CLARIF ICATION 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 RE VISED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. THEREFORE, IN VIEW OF THE FOREGOING, WE ARE OF THE VIEW THAT THIS APPEAL FILED BY REVENUE IS NOT MAINTAINABLE. THE LEARNED DEPARTMENT AL REPRESENTATIVE ALSO DID NOT PRESS THE APPEAL. ACCOR DINGLY, THIS APPEAL IS DISMISSED BEING NOT PRESSED, AND ALSO NOT MAINTAINABLE, HAVING REGARD TO AFORESAID CBDT CIRCULAR NO. 17/201 9 DATED 08.08.2019 READ WITH AFORESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATION DATED 20/08/2019. ITA NO: - 6680/DEL/2014 PAGE | 3 [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 04.12.2019. SD/- SD/- (H.S. SIDHU) (ANADEE N ATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 04.12.2019 SH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI