ACIT, New Delhi V. Westland Developers (P) Ltd., New Delhi

MA 282/DEL/2019

AI Insights

The case revolves around a Miscellaneous Application by the Revenue seeking rectification of a previous Tribunal order dismissing their appeal due to low tax effect, as per CBDT Circular No. 3/2018. The Revenue argued that the appeal should be considered on its merits because it involved materials seized from a third party's premises, which were relevant to the assessee, Westland Developers (P) Ltd. The assessee countered that the search and seizure did not pertain directly to them and that the tax effect was below the threshold set by the Circular. The Tribunal agreed with the assessee, dismissing the Revenue's application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302696 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 19-01-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 04-04-2019
• Laws Referred To: CBDT Circular No. 03/2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AJAY BHAGWANI
• Keywords: Tax effect; Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER MA No. 282/Del/2019 (In ITA No. 1675/Del/2014) Asstt. Year: 2009-10 O R D E R PER BENCH: In the captioned Miscellaneous Application, the Revenue has sought rectification of the order of the Tribunal in ITA No. 1675/Del/2019 dated 13.11.2018 on the ground that the appeal of the Revenue has been erroneously dismissed on the ground of low tax effect following CBDT Circular No. 03/2018 dated 11 th July, 2018. 2. The Ld. DR for the Revenue referred to the Miscellaneous Application filed by the Assessing Officer in this regard and contended that the Tribunal ACIT, Central Circle-8, New Delhi. Vs. Westland Developers (P) Ltd., M-11, Middle Circle, Connaught Place, New Delhi PAN AAACW1093J (Appellant) (Respondent) Department by: Shri Shankar Lal Verma, Sr.DR Assessee by : Shri Ajay Bhagwani, CA Date of Hearing 20/01/2023 Date of pronouncement 23/01/2023 MA No. 282/Del/2019 2 ought to have examined the issue involved on merit regardless of tax effect. The Ld. DR submitted that certain materials have been seized from the premises of the third party which belonged to the assessee which was the premise for making additions in question by the Assessing Officer which was reversed by the Ld. CIT(A). Under the circumstances where the appeal emanates from the seized material in search, the beneficiary effect of said Circular ought not to have been given and the matter ought to have been decided on merits. 3. The Ld. AR for the assessee on the other hand submitted that the alleged search relates to search in the case of the third party which search was carried out in the group concerns of BPTP Limited and others on 15.11.2007. The present assessment year i.e. assessment year 2009-10 relates to period subsequent to search and thus no material could have been seized in relation to a year which was not even come in existence at the relevant time. The appeal for assessment year 2009-10 is overtly independent of search and in any case there was no search in the case of the assessee and therefore the assessee is not governed by any exception clause. The Ld. Counsel further submitted that the recovery of seized material even in the case of the assessee is no ground to invoke the exception clause. The Ld. Counsel submitted that the CBDT Circular was invoked by the ITAT to dismiss the appeal of the Revenue on the ground that tax effect is about Rs. 19.18 lacs which is below the monetary limit of Rs. 20 lacs as per Circular No. 3/2018. It was thus submitted that there is no error in the order of the Tribunal far less the error of apparent nature. 4. We have perused the Miscellaneous Application and considered the rival submissions. It is a matter of fact that the tax effect involved is less than Rs. 20 lacs. We also observe that the Department could not demonstrate as to how the present appeal is not governed by the beneficial clause of CBDT Circular. We thus see no reason to interfere with the substantive order. MA No. 282/Del/2019 3 5. In the result, the Miscellaneous Application filed by the Revenue is dismissed. Order pronounced in the open court on 23 rd January, 2023 sd/- sd/- (ASTHA CHANDRA) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23/01/2023 Veena Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order