DCIT, NEW DELHI vs. M/S. SHEETAL INTERNATIONAL PVT. LTD., NEW DELHI

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ITA 1786/DEL/2013Status: DisposedITAT Delhi30 November 2016AY 2005-063 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 Revenue's appeal, noting that the Department itself submitted it should not be pressed in light of CBDT Circular No. 21/2015 regarding monetary limits for appeals. The assessee's cross-objection was dismissed as infructuous.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of an addition of Rs. 25,00,000/- made on account of unsecured loans. The assessee also filed a cross-objection. The Revenue's appeal was based on grounds including failure to discharge onus and procedural violations by the CIT(A).

What were the issues?

Whether the Revenue's appeal should be dismissed based on low tax effect and CBDT circulars. Whether the assessee's cross-objection is maintainable after the appeal is dismissed.

Which sections of the Income-tax Act were involved?

Section 68,Section 153C,Section 143(3),Section 268A

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SMT. DIVA SINGH & SHRI A. N. MISHRA

For Appellant: Shri Ashu Golal, CA
For Respondent: Shri S. S. Rana, CIT-DR, Shri Ashu Golal, CA

Heard together (2 matters)

C.O. No.134/Del/2013
ITA No.1786/Del/2013

Read from the judgment's own cause title. This page is filed under one of them.

O R D E R PER DIVA SINGH, J.M. : The captioned appeal filed by the Revenue is against the order of CIT(A)-III, New Delhi dated 14.01.2013 pertaining to assessment year 2005-06 passed under section 153C/143(3) of the Income-tax Act, 1961 (in short “the Act”). The assessee has also filed Cross Objection against the appeal of the Revenue. 2. Both the appeal and Cross Objection relating to the assessee emanating from the same assessment year are being disposed of by this consolidated order.

1.

CO No.134/Del/2013 3. In the appeal of the Revenue, the Revenue has raised the following grounds :- “

1. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the addition of Rs.25,00,000/- made by the Assessing Officer on account of unsecured loan in view of the provisions of section 68 of the Income Tax Act, 1961.

2. On the facts and in the circumstances of the case, the CIT(A) has erred in not appreciating the facts of the case that the assessee had not discharged its onus of providing the genuineness and creditworthiness of the transaction, as no copy of ITR and bank statement was provided except confirmation of Sh. N. K. Jain.

3. On the facts and in the circumstances of the case, the CIT(A) has erred, in violation of rule 46A of the Income Tax Rules, 1962, by not following the decision of Hon’ble Delhi High Court in the case of Manish Buildwell Pvt. Ltd. 204 Taxman 106, wherein it was held by the Hon’ble jurisdictional High Court to give two stage opportunity under rule 46A, i.e. first before admission of addition evidences and second after admission of additional evidences.

4. The order of the CIT(A) is erroneous and is not tenable on facts and in law.

5. The appellant craves leave to add, alter or amend any /all of the grounds of appeal before or during the course of the hearing of the appeal.”

4.

The Ld. AR, Shri Ashu Golal inviting attention to the quantum of relief granted by the CIT(A) submitted that the departmental appeal should be dismissed on the grounds of low tax effect relying upon the latest circular No.21/2015 dated 10th December, 2015 of CBDT. The Cross Objection filed by the assessee in the circumstances it was submitted may be dismissed as infructuous.

5.

Shri S. S. Rana, CIT-DR considering the grounds and the additions at stake for the Revenue fairly submitted that in terms of the CBDT Circular No.21/2015 dated 10th December 2015, the departmental appeal may be treated as not pressed.

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