ITO, NEW DELHI vs. M/S. SURYA INFRACON PVT. LTD., GURGAON

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: “G”, NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA No.4078/Del/2014 Assessment Year: 2010-11 Vs. M/s. Surya Infracon Pvt. Income Tax Officer, Ward-9(4), New Delhi Ltd., 315/16, Shivaji Nagar, Opposite Thukral, Nursing Home, Gurgaon. PAN :AAJCS2504F (Appellant) (Respondent) Appellant by Shri N.K. Bansal, Sr.DR Respondent by None

Date of hearing 31.01.2019 Date of pronouncement 05-02-2019

ORDER PER O.P. KANT, A.M.: The present appeal has been filed by the Revenue against the order dated 30.04.2014 passed by CIT(A)-XII, New Delhi, pertaining to the assessment year 2010-11. It has been identified by the Registry that the tax effect involved in the present appeal is less than Rs.20,00,000/-. 2. During the course of hearing, the Ld. Sr. DR submitted that no doubt tax effect involved in the appeal is less than Rs.20 lakhs, thus, bound by the departmental instruction, the appeal

2 ITA No.4078/Del/2014 has to be withdrawn. However, attention was invited to para 10 of the Circular No. 3/2018, dated 11th July, 2018, which has been modified by Circular dated 20th August, 2018 and in terms of the said modification the Departmental Representatives made a prayer that permission to pray for recall of the order may be granted in case any of the conditions in the reports made available by the A.O. subsequently, show that the issues were required to be contested. The modified para is extracted hereunder:

“10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account. (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by the Department and is pending in the Court. ”

3 ITA No.4078/Del/2014 3. Going by the prescription of Circular No. 3/2018, dated 11th July, 2018, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in the appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeals. Accordingly, we dismiss the appeal filed by the Revenue without going into merits of the case. However, it is made clear that the Department is at liberty to file Miscellaneous Application, if the tax effect is found to be more than the prescribed limit of Rs.20,00,000/- or any of the conditions etc., as available in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out. 4. In the result, the appeal of the Revenue is dismissed.

Order is pronounced in the open court on 5th February, 2019.

sd/- sd/-

[BHAVNESH SAINI] [O.P. KANT] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 5th February, 2019. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR

Asst. Registrar, ITAT, New Delhi

4 ITA No.4078/Del/2014

Sl. No. Particulars Date 1. Date of dictation: 31.01.2019 2. Date on which the draft of order is placed before 01.02.2019 the Dictating Member: 3. Date on which the draft of order is placed before the other Member: 4. Date on which the approved draft of order comes to the Sr. PS/PS: 5. Date of which the fair order is placed before the Dictating Member for pronouncement: 6. Date on which the final order received after having been singed/pronounced by the Members: 7. Date on which the final order is uploaded on the website of ITAT: 8. Date on which the file goes to the Bench Clerk 9. Date on which files goes to the Head Clerk: 10. Date on which file goes to the Assistant Registrar for signature on the order: 11. Date of dispatch of order: