DCIT, New Delhi V. M/s. United Technologies Corporation India Pvt. Ltd., New Delhi

ITA 6777/DEL/2015

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 8340 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Appeal Filed On: 23-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANCHAL KHANDELWAL
• Keywords: Tax effect
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I-2 NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBE R & SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 6777/DEL/2015 ( ASSESSMENT YEAR: 2011-12) DCIT, CIRCLE-27(1), ROOM NO. 193, C.R. BUILDING, NEW DELHI. VS UNITED TECHNOLOGIES CORPORATION INDIA PVT. LTD., DLF CENTRE, 2 ND FLOOR, SANSAD MARG, NEW DELHI. AADCG3742R APPELLANT RESPONDENT REVENUE BY MS. ANCHAL KHANDELWAL, SR. DR ASSESSEE BY SH. AJIT KORDE, ADV. ORDER PER SHRI BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST T HE ASSESSMENT ORDER DATED 27.10.2015 PASSED U/S 143(3) R.W.S. 144C(4) OF THE I.T. ACT PASSED BY DCIT, CIRCLE 27(1 ), NEW DELHI IN PURSUANCE TO THE ORDER OF DRP-2, NEW DELHI DATED 31 .08.2015 ON THE FOLLOWING GROUND: DATE OF HEARING 04.10.2018 DATE OF PRONOUNCEMENT 04.10.2018 2 ITA NO. 6777/DEL/2015 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE DRP-2 ERRED IN DIRECTING THE AO/TPO TO CONSIDER DATA IN REGARD TO THE COMPARABLES AS AVAILABLE BY THE 30.11.2011 BUT NOT BEYOND THIS DATE WHILE INTERRUPTED RULE 10D(4) OF THE I.T. RULES, 1962. 2. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET, SUBM ITTED THAT THE TAX EFFECT IN THE DEPARTMENTAL APPEAL IS LESS T HAN RS. 20 LAKHS. THEREFORE, APPEAL OF THE REVENUE IS NOT MAINTAINABL E. WORKING OF SAME IS GIVEN IN THE PAPER BOOK AND PROVIDED TO THE LD. DR. 2.1 LD. DR DID NOT DISPUTE THE CONTENTION OF LD. CO UNSEL FOR THE ASSESSEE AND ALSO SUBMITTED THAT AFTER RECTIFICATIO N ORDER PASSED U/S 154 OF THE ACT, THERE IS NO DEMAND AGAINST THE ASSESSEE. 3. ADMITTEDLY, THE TAX EFFECT IN THE PRESENT APPEAL IS LESS THAN RS. 20 LAKHS. VIDE CIRCULAR NO. 3/2018 DATED 11.07 .2018 ISSUED BY CBDT U/S 268A OF I.T. ACT, IT HAS BEEN DIRECTED THAT THE DEPARTMENT SHALL NOT FILE APPEAL BEFORE THE TRIBUNA L IN CASE WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT O F RS. 20 LAKHS. IT IS ALSO DIRECTED THAT THIS INSTRUCTION WILL APPL Y RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT MAY B E 3 ITA NO. 6777/DEL/2015 WITHDRAWN/NOT PRESSED. THE LD. DR IN VIEW OF THE B OARDS CIRCULAR ABOVE DID NOT PRESS THE DEPARTMENTAL APPEA L. THE CASE OF THE DEPARTMENT WOULD NOT FALL IN THE EXCEPTIONS PRO VIDED IN THE ABOVE BOARD CIRCULAR. IN THE RESULT, THE DEPARTMEN TAL APPEAL IS NOT MAINTAINABLE AS THE APPEAL IS FILED AGAINST THE BOARD INSTRUCTIONS REFERRED TO ABOVE AND, THEREFORE, THE APPEAL OF THE DEPARTMENT IS LIABLE TO BE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 04.10.2018 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 6777/DEL/2015 DATE OF DICTATION 04.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 04.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 04.10.18 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 04.10.18 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 04.10.18 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 04.10.18 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 04.10.18 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 04.1 0.18 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER