DCIT, Dehradun V. M/s. Miros AS, Dehradun

ITA 796/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6947 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 10-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G K DHALL
• Assessee Lawyers: N O N E
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SHRI G.D. AGRAWAL, PRESIDENT & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.796/DEL/2015 ASSESSMENT YEAR: 2011-12 DCIT, CIRCLE 1, INTERNATIOAL TAXATION DEHRADUN. VS MIROS AS, C/O: M/S HEMANT ARORA & CO. CAS, 1, TYAGI ROAD, DEHRADUN PAN: AAAAN2469H REVENUE BY SH. G K DHALL, CIT DR ASSESSEE BY NON E ORDER PER SHRI K.NARASIMHA CHARY, JM CHALLENGING THE DIRECTIONS OF THE LEARNED DISPUTE R ESOLUTION PANEL-II, NEW DELHI (FOR SHORT LD. DRP) DATED 14.04.2014, DIRE CTING THE LEARNED ASSESSING OFFICER TO APPLY THE DEEMED PROFIT RATE OF 10% UNDE R SECTION 44BB OF THE INCOME TAX ACT, 1961 (THE ACT) WHICH RESULTED IN DELETION OF RS. 49,36,320/- FROM THE AMOUNT PROPOSED IN THE DRAFT ASSESSMENT ORDER, REVE NUE PREFERRED THIS APPEAL. DATE OF HEARING 26.07.2018 DATE OF PRONOUNCEMENT 26.07.2018 2 2. AT THE OUTSET, IT IS BROUGHT TO OUR NOTICE THAT THE QUANTUM INVOLVED IN THIS CASE BEING LESS THAN RS.20 LACS, SQUARELY FALLS WIT HIN THE AMBIT OF CIRCULAR NO.3/2018 DATED 11.07.2018 ISSUED BY THE CENTRAL BO ARD OF DIRECT TAXES PRESCRIBING THE TAX EFFECT FOR PREFERRING APP EALS BEFORE TRIBUNAL BY THE REVENUE. 3. AFTER PERUSING THE MATERIALS AVAILABLE ON RECOR D, WE FIND THAT THE AMOUNT DISPUTED BEFORE US IS BELOW THE TAX EFFECT LIMIT PR ESCRIBED BY CBDT VIDE CIRCULAR NO.3/2018 DATED 11.07.2018 FOR PREFERRING APPEALS B EFORE TRIBUNAL BY THE REVENUE. ON PERUSAL OF THE CIRCULAR NO.3/2018 DATE D 11.07.2018 AND THE MATERIALS AVAILABLE ON RECORD, LD. DR COULD NOT POI NT OUT AS TO HOW AND WHY SUCH A CIRCULAR IS NOT APPLICABLE TO THE FACTS OF THE CA SE. WE ALSO FIND THAT THE CIRCULAR MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMIT S SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. WE FIND THAT THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. HENCE, WE HOLD THAT THE APPEAL OF THE REVENUE DESER VES TO BE DISMISSED IN TERMS OF LOW TAX EFFECT VIDE CIRCULAR NO.3/2018 DATED 11. 07.2018. ACCORDINGLY, THIS BEING A LOW TAX EFFECT CASE, WE DISMISS THIS APPEAL OF REVENUE IN LIMINE, AS UNADMITTED, WITHOUT GOING INTO THE MERITS OF THE CA SE. 4. IN THE RESULT, APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26TH JULY 2018 SD/- SD/- (G.D. AGRAWAL) (K. NARASIMH A CHARY) PRESIDENT JUDICIAL MEMBER DATED: 26TH JULY, 2018 KAVITA* 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DRAFT DICTATED ON 26.07.2018 DRAFT PLACED BEFORE AUTHOR 26.07.2018 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 26.7.18 KEPT FOR PRONOUNCEMENT ON 26.7.18 DATE OF UPLOADING ORDER ON THE WEBSITE 26.7.18 FILE SENT TO THE BENCH CLERK 26.7.18 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.