ITO, NEW DELHI vs. M/S. ALEWIAN INFRATECH PVT. LTD., NEW DELHI

PDF · subscribers
ITA 6672/DEL/2014Status: DisposedITAT Delhi01 April 2016AY 2010-112 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 departmental appeal. This was based on the CBDT's revised monetary limit for filing appeals before the ITAT, which was Rs. 10 lakh, and the tax effect in this case was less than that amount.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 29,00,000/- made under Section 68. The addition related to investments made by M/s S.G. Portfolio Ltd. The assessee's assessment in the case of M/s S.G. Portfolio Ltd. had been annulled.

What were the issues?

Whether the departmental appeal was maintainable given the tax effect and the CBDT's revised monetary limits for appeals. The maintainability of the addition under Section 68 in light of the annulment of the investor's assessment was also an issue.

Which sections of the Income-tax Act were involved?

Section 68,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘A’ NEW DELHI

Before: SMT DIVA SINGH & SH.PRASHANT MAHARISHI

Hearing: 28.03.2016Pronounced: 01.04.2016

Date of Hearing 28.03.2016 Date of Pronouncement 01.04.2016 ORDER

PER DIVA SINGH, JM

1.

The present appeal has been filed by the Revenue assailing the correctness of the order dated 30.09.2014 of CIT(A)-IV, New Delhi pertaining to 2010-11 assessment year on the following ground: – 1. “On the facts and in the circumstances of the case, the Learned CIT(A) has erred:- (i) In deleting the addition of Rs.29,00,000/- u/s 68 being investment made by M/s S.G.Portfolio Ltd. without considering the full facts of the case. (ii) In holding that as the assessment in the case of M/s S.G.Portfolio Ltd. for A.Y. 2010-11 had been annulled by the CIT(A), the investments made by this company should accepted by the dept. when the reassessment proceedings initiated u/s 148 in the case of this company are pending for finalization.”

2.

No one was present at the time of hearing on behalf of the assessee. The Ld. Sr. DR was required to address whether in view of Circular No.21/2015 dated 10th December, 2015 of CBDT the departmental appeal was maintainable or not. Considering the same in the facts on record, the Ld. Sr. DR fairly conceded that the departmental appeal has been filed wherein the tax effect involved is much less than Rs.10 lakh.

I.T.A .No.-6672/Del/2014

3.

We have heard the submissions of the Ld. Sr. DR on this issue and perused the material on record. We find that the CBDT vide the aforesaid Circular dated 10.12.2015 (a) has revised the monetary limit to Rs.10 lakh for filing the appeal by the department before Income Tax Appellate Tribunal; (b) Para 3 of the aforesaid Circular has been made applicable vide para 10 retrospectively; and (c) Considering the settled legal precedent that the Board’s instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities 4. Accordingly, in view of the above and in the light of the submissions on facts, we dismiss the departmental appeal considering the material available on record. 5. In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 01st April, 2016.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →