ITO, WARD- 21(1), NEW DELHI V. RAMPRO CONSULTANTS PVT. LTD., NEW DELHI

MA 157/DEL/2020

AI Insights

The case involves the Income Tax Department (Revenue) seeking to recall an earlier order that dismissed their appeal against Rampro Consultants Pvt. Ltd. due to the low tax effect, which was below the monetary limit of Rs. 50 lakhs as per CBDT Circular No. 17/2019. The Revenue argued that the case fell under exceptions to the circular because the disputed addition was based on a report from the Serious Fraud Investigation Office (SFIO). However, the Tribunal found no reference to the SFIO report in the assessment order or any evidence linking the assessee to the report, leading to the dismissal of the Revenue's application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300699 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 24-11-2022
• Assessment Year: 2008-2009
• Appeal Filed On: 21-06-2020
• Laws Referred To: CBDT Circular No.17/2019
• 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, HON’BLE PRESIDENT AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER M.A. No.157/Del/2020 [Arising out of ITA No.5767/Del/2017] Assessment Year: 2008-09 ITO, Ward-1(1), New Delhi Vs. Rampro Consultants Pvt. Ltd., 191A, Ekta Marg, Western Revenue, Sainik Farms, New Delhi PAN :AADCR1527M (Applicant) (Respondent) ORDER PER SAKTIJIT DEY, JM: This is an application by the Revenue seeking recall of order dated 23.08.2019 passed in ITA No.5767/Del/2017. 2. We have heard Sh. Sameer Malhotra, learned counsel appearing for the assessee and Sh. Abhishek Kumar, learned Departmental Representative. Applicant by Sh. Sameer Malhotra, Advocate Respondent by Sh. Abhishek Kumar, Sr. DR Date of hearing 25.11.2022 Date of pronouncement 30.01.2023 M.A. No.157/Del/2020 2 | P a g e 3. It is evident, the corresponding appeal of the Revenue was dismissed keeping in view the CBDT Circular No.17/2019, dated 8 th August, 2019, since, the tax effect on the amount disputed by the Revenue in the appeal was below the monetary limit of Rs.50 lakhs. 4. Before us, it is the specific case of the Revenue that the appeal should not have been summarily dismissed due to low tax effect as it is protected under exceptions to CBDT Circular No. 17/2019, dated 8 th August, 2019. Elaborating further, it is submitted that the disputed addition made by the Assessing Officer was based on a report received from Serious Fraud Investigation Office (SFIO). However, vehemently opposing the contention of the Revenue, learned counsel appearing for the assessee submitted that the SFIO report nowhere mentions the name of the assessee, hence, it cannot be said that the addition is based on SFIO report. 5. Having considered rival submissions, we find, in the assessment order the Assessing Officer has not stated even a single word with reference to SFIO report. Even, in course of hearing, when a specific query was put to the Departmental Representative to demonstrate, how and in what manner the M.A. No.157/Del/2020 3 | P a g e assessee is implicated in the SFIO report, learned Departmental Representative was unable to do so. Thus, it is evident, the allegation of the Revenue that the addition, which is the subject matter of dispute in Revenue’s appeal, is based on SFIO report is neither borne out from record nor factually established. 6. That being the case, it cannot be said that the appeal falls under any of the exceptions to CBDT Circular no. 17 of 2019. Therefore, the present application of the Revenue, being devoid of merit, is dismissed. 7. In the result, the miscellaneous application stands dismissed. Order pronounced in the open court on 30 th January, 2023 Sd/- Sd/- (G.S. PANNU) (SAKTIJIT DEY) PRESIDENT JUDICIAL MEMBER Dated: 30 th January, 2023. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi