IN INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH B NEW DELHI) BEFORE SHRI K.N. CHARY, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No:- 6870/Del/2015 (Assessment Year 2012-13) ACIT, Sh. Sumit Khaneja, Central Circle -08 (Now CC- Vs. H. No. 2, 23, Central Drive 17), DLF, Chattarpur Farms, New Delhi. New Delhi. PAN No AGUPK4134F APPELLANT RESPONDENT Revenue By Ms. Ashima Neb, Sr. DR Assessee By Ms. Riya Garg, CA Date of Hearing 05/09/2019 ITA No:- 3229/Del/2016 (Assessment Year: 2011-12) ACIT, M/s Dwarkadish Spinners Ltd., Circle 7(2), Vs. 1/A-20, Mohan Co-operative New Delhi. Industrial Estate, Mathura Road, New Delhi-110044. PAN No: AABCD0202D APPELLANT RESPONDENT Revenue By Ms. Ashima Neb, Sr. DR Assessee By Shri Ravi Pratap Mall, Adv. Date of Hearing 05/09/2019 ITA Nos.- 6870/Del/2015 and 3229/Del/2016. Sumit Khaneja and Dwarkadish Spinners Ltd. CONSOLIDATED ORDER Per Anadee Nath Misshra, AM (A) above captioned appeals by Revenue are taken up together for sake of convenience and brevity and these appeals are hereby disposed off through this Consolidated Order; because, in these appeals tax effect is less than monetary limit fixed by Central Board of Direct Taxes ( CBDT , for short) in its Circular No. 17/2019 dated 08.08.2019. Grounds taken in these appeals of Revenue are as under: ITA No.- 6870/Del/2015 1. Ld. Commissioner of Income Tax (Appeals) has erred in law and on facts in deleting addition of Rs.54,00,000/- made by AO on account of unexplained investment/expenditure disallowance etc of group, which was not offered in return of income filed for AY 2012- 13, despite submitting filing declaration during course of search proceedings. 2. Ld. Commissioner of Income Tax (Appeals) has erred in law and on facts in deleting addition of Rs.44,30,838/- (Addition reduced from Rs.50,00,216/- to Rs.5,69,378/-), made by AO u/s 2(22)(e) of I.T. Act, 1961. 3. Ld. Commissioner of Income Tax (Appeals) has erred in law and on facts in wrongly interoperating provisions of explanation 2 of section 2(22)(e) which makes it very clear that accumulated profits includes profits of company up to date of distribution/payment. 4. Ld. Commissioner of Income Tax (Appeals) has erred in law and on facts in deleting addition of Rs.3,00,000/- which was not shown by assessee in his return of income. 5. Ld. Commissioner of Income Tax (Appeals) has erred in law and on facts in deleting addition of Rs.75,000/- made by AO on account of unexplained money u/s69Aofthe IT Act, 1961. 6. (a) order of CIT(Appeals) is erroneous and not tenable in law and on facts, (b) appellant craves leave to add, alter or amend any/all of grounds of appeal before or during course of hearing of appeal. Page 2 of 5 ITA Nos.- 6870/Del/2015 and 3229/Del/2016. Sumit Khaneja and Dwarkadish Spinners Ltd. ITA No.- 3229/Del/2016 1. Ld. CIT(A) erred in law and on facts of case in deleting addition of Rs. 16,03,306/- made by AO on account of selling, General & Administrative expenses. 2. Ld. CIT(A) erred in law and on facts of case in deleting addition of Rs. 1,32,72,280/- made by AO on account of depreciation claimed. 3. appellant craves leave, modify, add or forego any ground(s) of appeal at any time before or during hearing of this appeal. (B) At outset, Learned Senior Departmental Representative ( Ld. DR) , for short] brought to our notice, at time of hearing, that tax effect in each of these appeals is below Rs. 50,00,000/-. Both sides, [Representatives of Revenue and Assessees] were in agreement, at time of hearing before us, that tax effect in each of these appeals is below Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal ( ITAT , for short) has been enhanced to Rs. 50,00,000/-. In subsequent clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that aforesaid revised monetary limit is also applicable to all pending appeals in ITAT Having regard to aforesaid, Ld. Sr. DR for Revenue did not press appeals. learned Authorized Representatives (Advocate/ Chartered Accountant) for respective assessees also submitted that appeals were not maintainable in view of aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018; and aforesaid clarification dated 20.08.2019 issued by CBDT. Page 3 of 5 ITA Nos.- 6870/Del/2015 and 3229/Del/2016. Sumit Khaneja and Dwarkadish Spinners Ltd. Therefore, these appeals are dismissed being not pressed and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in light of aforesaid clarification dated 20/08/2019. (C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of appeal(s) if it is found that any appeal(s) of Revenue are/ is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018. (D) In result, both appeals by Revenue are dismissed. Our decision was orally pronounced in Open Court after conclusion of hearing on date of hearing. Now, this written order is pronounced in Open Court on 11 /9/2019. Sd/- Sd/- (K.N. CHARY) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 11.09.2019 Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Page 4 of 5 ITA Nos.- 6870/Del/2015 and 3229/Del/2016. Sumit Khaneja and Dwarkadish Spinners Ltd. Date of dictation Date on which typed draft is placed before dictating Member Date on which typed draft is placed before Other Member Date on which approved draft comes to Sr. PS/PS Date on which fair order is placed before Dictating Member for pronouncement Date on which fair order comes back to Sr. PS/PS Date on which final order is uploaded on website of ITAT Date on which file goes to Bench Clerk Date on which file goes to Head Clerk date on which file goes to Assistant Registrar for signature on order Date of dispatch of Order ACIT, Central Circle-08 (Now CC-17), New Delhi v. Sumit Khaneja