ACIT, Circle-9(1), New Delhi V. Fleur Hotels P.Ltd, New Delhi

ITA 7813/DEL/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1715 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 07-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Rule 8D
• Section: 14A; 115JB; 254(2); 2

Judgement Text

ITA NO.- 7813/DEL/2018 FLEUR HOTELS P. LTD. NEW DELHI PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: B: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEM BER ITA NO:- 7813/DEL/2018 ( ASSESSMENT YEAR: 2014-15) A CIT, CIRCLE- 9(1), NEW DELHI. VS. FLEUR HOTELS P. LTD. ASEET NO. 6, AEROCITY HOSPITALITY DISTRICT NEW DELHI-110037 PAN NO: AACCC4602P APPELLANT RESPONDENT REVENUE BY : SH. AVIKAL MANU, SR. DR ASSESSEE BY : NONE PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- 3, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 24.09.2018 FOR ASSESSMENT YEAR 2014-15. GROUNDS TAKEN IN THIS APP EAL OF REVENUE ARE AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(APPEALS) ERRED IN DELETING THE ADDITION OF RS. 89,90,268/- MADE BY THE ASSESSING OFFICER WHILE PASSING ASSESSMENT ORDER DA TED 23.12.2016 ON ACCOUNT OF DISALLOWANCE UNDER SECTION 14A R.W. RULE 8D OF THE ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS WE LL IN THE LAW, THE LD. CIT(APPEALS) HAS ERRED IN DELETING ADDITION OF RS. 94,41,125/- MADE BY AO ITA NO.- 7813/DEL/2018 FLEUR HOTELS P. LTD. NEW DELHI PAGE 2 OF 4 U/S 14A OF THE INCOME TAX ACT WHILE COMPUTING THE M AT LIABILITY UNDER THE PROVISIONS U/S 115JB OF THE INCOME TAX ACT, 1961. 3. THE APPELLANT CRAVES LEAVE, MODIFY, ADD OR FOREG O ANY GROUNDS OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. (B) AT THE OUTSET, IT WAS NOTICED BY US AT THE TIME OF HEARING THAT TOTAL TAX EFFECT REPORTED AT SL. NO. 10 IN FORM 36 OF THE APPEAL FIL ED BY REVENUE IS RS. 29,16,892/-; WHICH IS WELL 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 LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY REVENUE IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) HAS BEEN ENHANCED TO R S. 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 CLARIFIED BY CBDT THAT THE AFORESAID REVIS ED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. IN VIEW OF THE FOR EGOING, LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE AGREED THAT THIS APPEAL WAS NOT MAIN TAINABLE; AND TO THIS CONTENTION DID NOT PRESS THE APPEAL. THEREFORE, THIS APPEAL IS DI SMISSED BEING NOT PRESSED, AND ALSO BEING NOT MAINTAINABLE HAVING REGARD TO AFORESAID C BDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH AFORESAID CBDT CIRCULAR NO. 3 OF 2018 IN THE LIGHT OF AFORESAID CLARIFICATION DATED 20/08/2019. (C) BEFORE LEAVING, WE CLARIFY THAT REVENUE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) OF INCOME TAX ACT, 1961 SEEKING RECALL OF THIS ORDER AND, FOR RESTORATION OF THIS A PPEAL IF IT IS FOUND THAT APPEAL ITA NO.- 7813/DEL/2018 FLEUR HOTELS P. LTD. NEW DELHI PAGE 3 OF 4 OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULA RS DATED 08.08.2019 AND 11.07.2018. (D) IN THE RESULT, THIS APPEAL BY REVENUE IS DISMISSED. OUR DECISION WAS ORALLY PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HE ARING ON 16.02.2021. SD/- SD/- (AMIT SHUKLA) (AN ADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUN TANT MEMBER DATED: 18/02/2021 *BR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI