ITO, New Delhi V. Premier Polyfilm Ltd., New Delhi

MA 58/DEL/2019

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5421 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-11-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2004-2005
• Appeal Filed On: 24-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SATYAJIT ROYAL
• Keywords: Tax effect; Tax effect
• Section: 148; 271(1)(c); 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “F” : DELHI ] BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER A N D SHRI M. BALAGANESH, ACCOUNTANT MEMBER Misc. App. No. 58/Del/2019 [ in आ.अ.सं/.I.T.A No. 3086/Del/2014 ] िनधाᭅरणवषᭅ/Assessment Year: 2004-05 Income Tax Officer, Ward : 14 (4) New Delhi. बनाम Vs. Premier Polyfilm Ltd., 305, Elite House, 36-Community Centre, Zamrudpur, Kailash Colony, New Delhi – 110 085, PAN No. AAACP0371Q A N D आ.अ.सं./I.T.A No. 1047/Del/2018 िनधाᭅरणवषᭅ/Assessment Year: 2004-05 ACIT, Circle : 20 (1) New Delhi. बनाम Vs. Premier Polyfilm Ltd., 305, Elite House, 36-Community Centre, Zamrudpur, Kailash Colony, New Delhi – 110 085, PAN No. AAACP0371Q अपीलाथᱮ /Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरतीकᳱओरसे /Assessee by : Shri Satyajit Royal, C. A.; राज᭭वकᳱओरसे / Department by : Shri Manu Chaurasia, Sr. D. R.; 2 सुनवाईकᳱतारीख/ Date of hearing : 20/10/2023 उ᳃ोषणाकᳱतारीख/Pronouncement on : 09/11/2023 आदेश /O R D E R PER C. N. PRASAD, J. M. : 1. Through this Miscellaneous application the Revenue seeks to recall the order of the Tribunal in ITA. No. 1047/Del/1018 dated 7.09.2018 stating that the Tribunal inadvertently dismissed the appeal of the Revenue on the ground that the tax effect is less than Rs.20,00,000/- whereas the appeal of the Revenue was filed in deleting the penalty of Rs.23,85,690/- levied under section 271(1)(c ) of the Income Tax Act, 1961 (the Act). 2. The ld. DR contended that since the monetary limit in this appeal of the Revenue is more than Rs.20,00,000/- there is a mistake apparent on record in the order of the Tribunal in dismissing the appeal of the Revenue on the ground that the tax effect is below Rs.20,00,000/-. 3. The ld. AR agreed with the contentions of the ld. DR. However, the ld. AR further submits that the monetary limit has been enhanced to Rs.50,00,000/- by the CBDT and in various judicial pronouncements it has been held that the Circular applies to even for pending appeals prior to the date of issue of circular. The ld. Counsel for the assessee further submits that even otherwise the additions made while completing the assessment under section 143(3) read with section 148 of the Act stands deleted 3 by the order of the Tribunal in ITA. No. 3086/Del/2014 dated 13.04.2017 wherein the Tribunal quashed the re-assessment order passed under section 143(3) r.w.s. 147 of the Act. Further the appeal of the Revenue against the order of the Tribunal has also been dismissed by the High Court in ITA. 1092/2017 dated 18.07.2018 in view of low tax effect. Copies of the orders are placed on record. 4. Heard rival contentions. We observe that as on the date of passing of the order by the Tribunal dated 7.09.2018 in ITA. No. 1047/Del/2018 the monetary limit fixed by the CBDT for filing appeals before the Tribunal was Rs.20,00,000/- and the tax effect in the appeal of the Revenue was Rs.23,85,690/- which was more than Rs.20,00,000/-. Therefore, since the tax effect was more than Rs.20,00,000/- in the appeal of the Revenue the order passed by the Tribunal on the ground that the tax effect is less than Rs.20,00,000/- is a mistake apparent on record. Thus, we recall the order of the Tribunal in ITA. No. 1047/Del/2018 dated 7.09.2018. 5. It is the submission of the ld. AR that the re-assessment made under section 143(3) r.w.s. 147 of the Act has been quashed by the Tribunal and the appeal of the Department has also been dismissed by the High Court on the monetary limits. Therefore, since the re-assessment made under section 143(3) read with section 147 of the Act was quashed by the Tribunal based on which the penalty was levied under section 271(1)(c) of the Act, penalty order has no legs to stand. Hence the appeal filed by the Revenue in ITA. No. 1047/Del/2018 is hereby dismissed. 4 6. In the result, Miscellaneous application filed by the Revenue is allowed and the appeal of the Revenue is dismissed. Order pronounced in the open court on : 09/11/2023. Sd/- Sd/- ( M. BALAGANESH ) ( C. N. PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 09/11/2023. *MEHTA* आदेश की Ůितिलिप अŤेिषत / Copy of Order Forwarded to:- 1. आवेदक / Assessee 2. राजˢ / Revenue 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ- अपील / CIT (A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, DELHI / DR, ITAT, DELHI 6. गाडŊ फाइल / Guard file. By order ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 02.11.2023 Date on which the typed draft is placed before the dictating Member 03.11.2023 5 Date on which the typed draft is placed before the Other Member 09.11.2023 Date on which the approved draft comes to the Sr. PS/PS 09.11.2023 Date on which the fair order is placed before the Dictating Member for pronouncement 09.11.2023 Date on which the fair order comes back to the Sr. PS/PS 09.11.2023 Date on which the final order is uploaded on the website of ITAT 09.11.2023 Date on which the file goes to the Bench Clerk 09.11.2023 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