El El Hotels & Investments Ltd vs DCIT | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCH “B”: NEW DELHI

Before: SHRI SUDHANSHU SRIVASTAVA & SHRI O.P. KANT

For Appellant: Shri Ajay Wadhwa, Advocate, Ms. Bharti Sharma, CA

For Respondent: Ms. Nidhi Srivastava, CIT DR

Hearing: 31/07/2019

Ld. CIT (Appeals)-II, Delhi for Assessment Year 2003-04 the date of the impugned order is 14.09.2009. is also assessee’s appeal and it pertains to assessment year 2004-05 which has been passed by the Ld. CIT(Appeals)-II, Delhi vide order dated 14.9.2009. ITA No. 4431/Del/2009 is department’s cross appeal for Assessment Year 2004-05. All these appeals were heard together and are being disposed of together for the sake of convenience.

At the outset, the Ld. AR submitted that being the department’s appeal was liable to be dismissed at the threshold itself as the tax effect was below the prescribed tax limit. It was submitted that the disputed addition which has been restored to the ITAT by the Hon’ble High Court was only to the tune of Rs. 34,13,764/- on account of income accrued from ITC Ltd.

The Ld. CIT (DR) fairly accepted that the disputed addition of Rs. 34,13,764/- would result in a tax effect of less than Rs. 20 , 4514,4431/Del/2009 EL EL Hotels & Investments Ltd. vs DCIT & ACIT vs EL EL Hotels & Investments Ltd. lacs and, therefore, the appeal was not maintainable before the ITAT in view of the CBDT Circular 3/2018 dated 20.08.2018.

With respect to the assessee’s appeal bearing Assessment Year 2003-04 pertaining to disallowance of depreciation of Rs. 506,309/- in respect of assets leased to ITC Ltd, it was submitted that the issue had already been decided in favour of the assessee by the order of the ITAT vide order dated 16.4.2010 in Para 11. Similarly, in in Assessment Year 2004-05, it was submitted that the first issue was disallowance of depreciation to the tune of Rs. 443,912/- on account of assets leased to ITC and this issue, as in Assessment Year 2003-04 had already been decided in favour of the assessee by the order of the ITAT vide order dated 16.4.2010. It was further submitted that the second issue in this appeal was disallowance of legal and professional expenses of Rs. 658,918/- which was not being pressed due to smallness of amount.

The Ld. CIT (DR), although, supported the order of the lower authorities, fairly accepted that the issue of depreciation stood covered in favour of the assesssee by the order of the ITAT.

ITA Nos.4513, 4514,4431/Del/2009 EL EL Hotels & Investments Ltd. vs DCIT & ACIT vs EL EL Hotels & Investments Ltd.

Having heard both the parties, we agree with the contention of the Ld. AR that the department’s appeal bearing is liable to be dismissed in view of the disputed tax being below the prescribed tax limit for filing of appeals before the ITAT by the department. Accordingly ITA No. 4431/Del/2009 stands dismissed. We further note that in ITA 4513/Del/2009 the issue of depreciation is already decided in favour of the assessee vide order of ITAT dated 16.4.2010. This issue is also identical in Assessment Year 2004-05 and is covered by the order of the ITAT likewise. Since, the assessee has not pressed the grounds relating to disallowance of professional charges the same is dismissed as not pressed.

In the final result stands partly allowed, ITA No. 4431/Del/2009 stands dismissed.

EL EL HOTELS & INVESTMENTS LTD vs. DCIT, NEW DELHI