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ACIT, Central Circle -08 (Now CC- 17), New Delhi. Vs. Sh. Sumit Khaneja, H. No. 2, 23, Central Drive DLF, Chattarpur Farms, New Delhi.
September, 11th 2019

 

 

 

                                          ITA Nos.- 6870/Del/2015 and 3229/Del/2016.
                                           Sumit Khaneja and Dwarkadish Spinners Ltd.

       IN THE 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

                            Page 1 of 5
                                                       ITA Nos.- 6870/Del/2015 and 3229/Del/2016.
                                                        Sumit Khaneja and Dwarkadish Spinners Ltd.

                           CONSOLIDATED ORDER


Per Anadee Nath Misshra, AM


(A)   The above captioned appeals by Revenue are taken up together for the sake of

convenience and brevity and these appeals are hereby disposed off through this

Consolidated Order; because, in these appeals the tax effect is less than the monetary

limit fixed by the 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.    The Ld. Commissioner of Income Tax (Appeals) has erred in law and on the
             facts in deleting the addition of Rs.54,00,000/- made by AO on
             account of unexplained investment/expenditure disallowance etc of the
             group, which was not offered in the return of income filed for the AY 2012-
             13, despite submitting filing declaration during the course of search
             proceedings.
      2.     The Ld. Commissioner of Income Tax (Appeals) has erred in law and on the
             facts in deleting the 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 the I.T. Act,
             1961.
      3.      The Ld. Commissioner of Income Tax (Appeals) has erred in law and on
             the facts in wrongly interoperating the provisions of explanation 2 of
             section 2(22)(e) which makes it very clear that accumulated profits includes
             profits of the company up to the date of distribution/payment.
      4.      The Ld. Commissioner of Income Tax (Appeals) has erred in law and on
             the facts in deleting the addition of Rs.3,00,000/- which was not
             shown by the assessee in his return of income.
      5.     The Ld. Commissioner of Income Tax (Appeals) has erred in law and on the
             facts in deleting the addition of Rs.75,000/- made by AO on account of
             unexplained money u/s69Aofthe IT Act, 1961.
      6.     (a) The order of the CIT(Appeals) is erroneous and not tenable in law and
             on facts,
              (b) 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."







                                         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 the case in deleting the addition of
           Rs. 16,03,306/- made by the AO on account of selling, General &
           Administrative expenses.

      2.   Ld. CIT(A) erred in law and on facts of the case in deleting the addition of
           Rs. 1,32,72,280/- made by the AO on account of depreciation claimed.

      3.   The appellant craves leave, modify, add or forego any ground(s) of appeal
           at any time before or during the hearing of this appeal."



(B)   At the outset, Learned Senior Departmental Representative ("Ld. DR)", for short]

brought to our notice, at the time of hearing, that tax effect in each of these appeals is

below Rs. 50,00,000/-. Both sides, [Representatives of Revenue and the Assessees]

were in agreement, at the time of hearing before us, that the 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 a 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 the aforesaid revised monetary limit is also applicable

to all pending appeals in ITAT Having regard to the aforesaid, the Ld. Sr. DR for

Revenue did not press the appeals. The learned Authorized Representatives (Advocate/

Chartered Accountant) for the respective assessees also submitted that the appeals

were not maintainable in view of the aforesaid CBDT Circulars dated 08.08.2019 and

11.07.2018; and the 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 the 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 the 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 the result, both the appeals by Revenue are dismissed. Our decision was

orally pronounced in the Open Court after conclusion of hearing on the 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 the typed draft is placed before the
dictating Member
Date on which the typed draft is placed before the
Other Member

Date on which the approved draft comes to the Sr.
PS/PS

Date on which the fair order is placed before the
Dictating Member for pronouncement

Date on which the fair order comes back to the Sr.
PS/PS
Date on which the final order is uploaded on the
website of ITAT

Date on which the file goes to the Bench Clerk

Date on which the file goes to the Head Clerk

The date on which the file goes to the Assistant
Registrar for signature on the order

Date of dispatch of the Order




                                Page 5 of 5

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