ITO, New Delhi V. Sh. Umesh Chand, New Delhi

ITA 6924/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6774 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 3
• Next Hearing Date: 05-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 24-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R K MEHRA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC-3 NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER I.T.A .NO.-692 4/DEL/2014 (ASSESSMENT YEAR- 2009-10) ITO, WARD-60(4), NEW DELHI. (APPELLANT) VS UMESH C H AND, KHASRA NO.348/2, HOUSE NO.362, VILLAGE-DALLUPURA (VASUNDHARA SWEET CORNER), NEW DELHI-110096. PAN-ADJPC8889R (RESPONDENT) APPELLANT BY SH.DEEPAK G ARG, SR.DR RESPONDENT BY SH. R.K.MEHRA, CA ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 20.10.2014 OF CIT(A)-XXVII, NEW DELHI PERTAINING TO 2009-10 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ORDER OF THE LD.CIT(A) IS BAD IN LAW AND NOT IN CONSONANCE WITH THE FACTS OF THE CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAD ERRED IN DELETING THE ADDITION BY RELYING ON THE CA SH FLOW STATEMENT SUBMITTED BY THE ASSESSEE AND IGNORING THE FACT THA T THE ASSESSEE HAD AMPLE CASH IN HAND ON THE DATES OF WITHDRAWALS OF CASH FROM THE BANK, FOR WHICH THE ASSESSEE DID NOT SUBMIT ANY JUS TIFICATION FOR THE NECESSITY OF CASH WITHDRAWALS ON THOSE DATES. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HIMSELF SPECIFICALLY MENTIONED THAT THE ASSESSEE DI D NOT SUBMIT ANY SPECIFIC EVIDENCE OR SUBMISSIONS REGARDING THE SOUR CE OF THE 3 CASH DEPOSITS AND DESPITE OF IT, HE HAS ALLOWED RELIEF T O THE ASSESSEE. 4. THE APPELLANT CRAVE LEAVE TO ADD, ALLOW OR AMEND AN Y/ALL THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HE ARING OF THE APPEAL. DATE OF HEARING 05.07.2016 DATE OF PRONOUNCEMENT 25.07.2016 I.T.A .NO.-692 4/DEL/2014 PAGE 2 OF 2 2. A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT THE RETURNED INCOME OF RS.2,18,015/- WAS ASSESSED AT RS.19,24,920/- AS A R ESULT OF THE ADDITION OF RS.17,06,900/- BY THE AO. THE SAID ADDITION WAS DE LETED IN APPEAL BY THE CIT(A) WHICH IS CHALLENGED BY THE REVENUE IN THE PRESENT P ROCEEDINGS. 2.1. THE LD.AR INVITING ATTENTION TO THE CIRCULAR N O.21/2015 DATED 10TH DECEMBER, 2015 OF CBDT SUBMITTED THAT THE SAID CIRC ULAR IS RETROSPECTIVE AND THUS IN TERMS OF PARA 10 OF THE SAME, THE DEPARTMEN TAL APPEAL DESERVE TO BE DISMISSED. CONSIDERING THE CIRCULAR AND THE ISSUE RAISED, THE LD. SR. DR FAIRLY CONCEDED THAT THE DEPARTMENTAL APPEAL HAS BEEN FILE D WHEREIN THE TAX EFFECT INVOLVED IS MUCH LESS THAN RS.10 LAKH. 3. HAVING HEARD THE SUBMISSIONS OF THE PARTIES ON T HIS ISSUE AND PERUSED THE MATERIAL ON RECORD. I FIND THAT THE CBDT VIDE THE AFORESAID CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT TO RS.10 LAKH IN PARA 3 FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLAT E TRIBUNAL. PARA 3 OF THE AFORESAID CIRCULAR HAS BEEN MADE APPLICABLE VIDE PA RA 10 RETROSPECTIVELY. CONSIDERING THE SETTLED LEGAL PRECEDENT THAT THE BO ARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF TH E INCOME TAX ACT, 1961 ARE BINDING ON THE AUTHORITIES, THE DEPARTMENTAL APPEAL IS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 25 TH JULY, 2016. SD/- (DIVA SINGH) JUDICIAL MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI