ITO, NEW DELHI vs. M/S. AGGARWAL TUBE SUPPLIERS PVT. LTD., NEW DELHI

ITA 5068/DEL/2016Status: DisposedITAT Delhi21 November 2019AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal filed by the Revenue. This was based on the fact that the tax effect involved in the appeal was below the monetary limit prescribed by the CBDT for filing appeals before the Tribunal.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing a consequential loss on the sale of shares. The Revenue's grounds of appeal questioned the purchase value of shares and the actual transfer of shares.

What were the issues?

The primary issue was whether the appeal filed by the Revenue was maintainable given the tax effect involved, as per the prevailing CBDT circulars.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A” New Delhi

Before: SHRI H.S. SIDHU & SHRI R.K. PANDA

आदेश /O R D E R

PER H.S. SIDHU, J.M. 1. This appeal filed by the Revenue against the impugned order dated 18.07.2016 passed by the Ld. CIT(Appeals)-1, New Delhi in relation to assessment year 2012-13 on the following grounds: 1. “On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in adopting the purchase value of shares at Rs. 1,56,75,000/- as against Rs. 28,53,655/- worked out by AO and allowing consequential loss on sale of shares to the tune of Rs. 1,28,35,833/- for the following reasons: 1.1 That the selling parties were not having the shares of Ashutosh Paper Mills Ltd. (which was sold) in their possession as on 03.01.2012 whereas they received the

ITO vs. Aggarwal Tube Suppliers Pvt. Ltd./ I.T.A.No.5068/Del/2016/A.Y.2012-13 Page 2 of 3 shares in the De-mat accounts in the month of March 2012 only. 1.2 That the assessee has failed to prove that there was actual transfer of shares on the date of issue of alleged debit note which could not be confirmed as the assessee has failed to produce the party for verification. 2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”

We have heard the learned CIT (D.R.), who has pointed out the tax effect involved in this appeal, is below monetary limit prescribed by the CBDT. We find that the CBDT vide Circular No.17/2019 dated 8th August 2019 [F.No.279/ Misc.142/ 2007-ITJ (Pt)] by amending para 3 of CBDT Circular No.3/2018 dated 11.07.2018 has enhanced the monetary limit for filing of appeal before Tribunal to Rs.50 lakhs and has also removed the anomaly in para 5 of said Circular No. 3/2018. We find that the present case does not fall within the exceptions clause 10 of said CBDT Circular No. 3/2018. Therefore, the present appeal is not maintainable as

per above Circular No. 17/2019, hence dismissed. This Circular is applicable to all pending appeals as clarified by CBDT letter dated 20.08.2019 [F. No. 279/Misc./M-93/2018-ITJ] and in the light of judgement of Hon`ble Supreme Court in the case of Pr. CIT, Jaipur v.

Meenakshi Modi SLP (Civil) Diary No. 25076 of 2019-dated 16.08.2019 wherein the Hon`ble Supreme Court has dismissed the appeal of ITO vs. Aggarwal Tube Suppliers Pvt. Ltd./ I.T.A.No.5068/Del/2016/A.Y.2012-13 Page 3 of 3 Revenue, as tax involved was less than Rs. 2 Crores. However, the Revenue is at liberty to approach to this Tribunal for recalling this order, if it is comes to the notice of the AO that the tax effect is more than the monetary limit provided under above Circular or the appeals is fall within ambit of the exceptions provided under the said Circular.

In the result, the appeal of the Revenue is stands dismissed. The order pronounced in the open court on 21.11.2019

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