ITO, Ward- 21(4), New Delhi V. Rukmini Polytubes Pvt. Ltd., Delhi

MA 155/DEL/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3789 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 21-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘F’ NEW DELHI BEFORE SHRI G.S. PANNU, PRESIDENT & SHRI SAKTIJIT DEY, JUDICIAL MEMBER M.A. No.155/Del/2020 Arising out of ITA No.551/Del/2018 Assessment Year: 2009-10 ITO, Ward-21(4), New Delhi Vs. M/s. Rukmini Polytubes Pvt. Ltd., X-55/102, Loha Mandi, Naraina, Delhi -1100 28 PAN :AACCR8167Q (Applicant) (Respondent) ORDER PER SAKTIJIT DEY, JM: Captioned application has been filed by the Revenue, seeking recall/rectification of order dated 23.08.2019 passed in ITA No.551/Del/2018. 2. At the time of hearing, learned Departmental Representative submitted that Revenue’s appeal was erroneously disposed of as a low tax effect case, though, it is covered within the exceptions provided to Applicant by Shri Suresh K Gupta,CA Respondent by Shri Om Prakash, Sr. DR Date of hearing 29.04.2022 Date of pronouncement 26.06.2022 2 MA No.155/Del/2020 CBDT Circular No. 3/2018 dated 11.07.2018 read with Circular No. 17/2019 dated 08.08.2019. 3. Proceeding further, learned Departmental Representative submitted, since, while completing the assessment, the Assessing Officer has made the addition based on the report/information received from an external agency, as provided in paragraph 10 of CBDT Circular dated 11.07.2018 and 20.08.2018, the appeal cannot be decided based on tax effect but has to be adjudicated on merits. 4. Per contra, learned counsel for the assessee submitted that the appeal is no way protected by any of the exceptions provided to CBDT Circular No. 3/2018 dated 11.07.2018 read with Circular No. 17/2019 dated 08.08.2019. 4. We have considered rival submissions and perused the material available on record. 7. In course of hearing, on a query made by the Bench, learned Departmental Representative has submitted that the addition made by the Assessing Officer is based on a report dated 31.03.2016 of Serious Fraud Investigation Office (SFIO), Ministry of Corporate Affairs, New Delhi. However, in reply to the specific objection raised by the 3 MA No.155/Del/2020 assessee that the concerned report does not mention the transaction done by assessee with S.K. Jain, brothers group, learned Departmental Representative failed to demonstrate that the SFIO’s report even remotely refers to the transaction of the assessee. Contention of the Revenue that the addition made by the Assessing Officer is based on SFIO’s Report is not borne out from record, hence, a non-starter. Even, on careful scrutiny of the SFIO’s report submitted before us by the learned Departmental Representative, we were unable to find any reference to the transaction undertaken by assessee with Shri S.K. Jain, brothers group. In our considered opinion, the Revenue has failed to demonstrate that the appeal filed by it is covered under any of the exceptions provided to the low tax effect circular issued by the CBDT, in terms of which Revenue’s appeal was dismissed. Therefore, we do not find any merit in the present application of the Revenue. 12. In the result, miscellaneous application is dismissed. Order pronounced in the open court on 27 th June, 2022. Sd/- Sd/- ( G.S. PANNU ) (SAKTIJIT DEY) PRESIDENT JUDICIAL MEMBER Dated: 27 th June, 2022. Mohan Lal 4 MA No.155/Del/2020 Copy forwarded to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi