ITO, Ward-6(2), New Delhi v. Classic Postik Aahar Pvt. Ltd
[Citation -2019-LL-0820-83]

Citation 2019-LL-0820-83
Appellant Name ITO, Ward-6(2), New Delhi
Respondent Name Classic Postik Aahar Pvt. Ltd.
Court ITAT-Delhi
Relevant Act Income-tax
Date of Order 20/08/2019
Assessment Year 2007-08
Judgment View Judgment
Keyword Tags unexplained cash credit • low tax effect • source of fund • genuineness and creditworthiness • identity
Bot Summary: In view of the CBDT Circular No.17/2019 dated 8th August, 2019, the appeal filed by the Revenue is not maintainable. The Ahmedabad Bench of the Tribunal in the case of ITO vs. Dinesh Madhavlal Patel vide ITA No.1398/Ahd/2004, order dated 14th August, 2019, has held that the said Circular is applicable even to the pending appeals in addition to the appeals to be filed henceforth. Having considered the rival submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now. If in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In view of the above discussions, we hereby hold that the relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8th August 2019 shall be applicable to the pending appeals in addition to the appeals to be filed henceforth. Since, in the instant case, admittedly, the tax effect involved in the ground raised by the Revenue is below Rs.50 lakhs following the decision of the Ahmedbad Bench of the Tribunal in the case of ITO vs. Dinesh Madhavlal Patel(supra) wherein it is held that the said Circular is applicable even to pending 3 ITA No.5679/Del/2016 appeals, we hold that the appeal filed by the Revenue is not maintainable and has to be dismissed.


IN INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : B : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.5679/Del/2016 Assessment Year: 2007-08 ITO, Vs Classic Postik Aahar Pvt. Ltd. Ward-6(2), 53/3-B, Prahladpur Banger, CR Building, New Delhi. New Delhi. PAN: AACCC1165B (Appellant) (Respondent) Assessee by : None Revenue by : Ms Ashima Neb, Sr. DR Date of Hearing : 20.08.2019 Date of Pronouncement : 20.08.2019 ORDER PER R.K. PANDA, AM: This appeal filed by Revenue is directed against order dated 28th July, 2016 of CIT(A)-2, New Delhi, relating to assessment year 2007-08. 2. only effective ground raised by Revenue reads as under:- 1. Whether on facts and in circumstances of case and in law, ld.CIT(A) has erred in deleting addition of Rs.96,00,000/- on account of unexplained cash credit u/s 68 of IT Act, 1961, ignoring fact that assessee had failed to discharge its onus of establishing identity, genuineness and credit worthiness of source of funds received. ITA No.5679/Del/2016 3. After hearing ld. DR and on perusal of orders of authorities below, we find tax effect involved in ground raised by Revenue is below Rs.50 lakhs. Therefore, in view of CBDT Circular No.17/2019 dated 8th August, 2019, appeal filed by Revenue is not maintainable. Ahmedabad Bench of Tribunal in case of ITO vs. Dinesh Madhavlal Patel vide ITA No.1398/Ahd/2004, order dated 14th August, 2019, has held that said Circular is applicable even to pending appeals in addition to appeals to be filed henceforth. relevant portion of order of Tribunal from para 5 to 7 of order reads as under:- 5. Having considered rival submissions and having perused material on record, we do not have slightest of hesitation in holding that concession extended by CBDT not only applies to appeals to be filed in future but it is also equally applicable to appeals pending for disposal as on now. Our line of reasoning is this. circular dated 8th August 2019 is not standalone circular. It is to be read in conjunction with CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of said circular. This is evident from following extracts from circular dated 8th August 2019: 2. As step towards further management of litigation. it has been decided by Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of Circular mentioned above and accordingly. table for monetary limits specified in Para 3 of Circular shall read as follows: S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 3. Further, with view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of circular is substituted by following para: 2 ITA No.5679/Del/2016 5. Assessing Officer shall calculate tax effect separately for every assessment year in respect of disputed issues in case of every assessee. If in case of assessee, disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which tax effect in respect of disputed issues exceeds monetary limit specified in para 3. No appeal shall be filed in respect of assessment year or years in which tax effect is less than monetary limit specified in para 3. Further, even in case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year no appeal shall be filed in respect of assessment year or years in which tax effect is less than monetary limit specified in para 3. In case where composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately 4. said modifications shall come into effect from date of issue of this Circular. 6. Clearly, all other portions of circular no. 3 of 2018 (supra) have remained intact. portion which has remained intact includes paragraph 13 of aforesaid circular which is as follows: 13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below specified tax limits in pare 3 above may be withdrawn/ not pressed. 7. In view of above discussions, we hereby hold that relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8th August 2019 (supra) shall be applicable to pending appeals in addition to appeals to be filed henceforth. 4. Since, in instant case, admittedly, tax effect involved in ground raised by Revenue is below Rs.50 lakhs, therefore, following decision of Ahmedbad Bench of Tribunal in case of ITO vs. Dinesh Madhavlal Patel(supra) wherein it is held that said Circular is applicable even to pending 3 ITA No.5679/Del/2016 appeals, we hold that appeal filed by Revenue is not maintainable and has to be dismissed. Accordingly, appeal filed by Revenue is dismissed. 5. In result, appeal filed by Revenue is dismissed. decision was pronounced in open court on conclusion of hearing today itself i.e., on 20.08.2019. Sd/- Sd/- (SUCHITRA KAMBLE) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMFBER Dated: 20th August, 2019 dk Copy forwarded to 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi 4 ITO, Ward-6(2), New Delhi v. Classic Postik Aahar Pvt. Ltd
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