ACIT, New Delhi v. M/s. Jai Beverages, New Delhi

ITA 401/DEL/2016 | 2012-2013
Pronouncement Date: 21-11-2019 | Result: Dismissed

Appeal Details

RSA Number 40120114 RSA 2016
Assessee PAN AAACJ6275H
Bench Delhi
Appeal Number ITA 401/DEL/2016
Duration Of Justice 3 year(s) 9 month(s) 24 day(s)
Appellant ACIT, New Delhi
Respondent M/s. Jai Beverages, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 21-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 21-11-2019
Assessment Year 2012-2013
Appeal Filed On 27-01-2016
Judgment Text
ACIT VS. JAI BEVERAGES/ I.T.A.NO.401/DEL/2016/A.Y.2 012-13 AND JAI BEVERAGES VS. ACIT/CROSS OBJECTION NO. 90/DEL/2 016 PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI H.S. SIDHU JUDICIAL MEMBER AND SHRI R.K. PANDA ACCOUNTANT MEMBER . . /. I.T.A NO.401/DEL/2016 / ASSESSMENT YEAR:2012-13 ACIT CENTRAL CIRCLE-07 ROOM NO. 330 ARA CENTRE JHANDEWALAN EXTN. NEW DELHI. VS. JAI BEVERAGES R/O 52 JANPATH NEW DELHI. APPELLANT / RESPONDENT PAN NO. AAACJ6275H & CROSS OBJECTION NO. 90/DEL/2016 ( . . /. I.T.A NO.5068/DEL/2016) / ASSESSMENT YEAR:2012-13 JAI BEVERAGES R/O 52 JANPATH NEW DELHI. VS. ACIT CENTRAL CIRCLE-07 ROOM NO. 330 ARA CENTRE JHANDEWALAN EXTN. NEW DELHI. APPELLANT / RESPONDENT PAN NO. AAACJ6275H /REVENUE BY SHRI SANJOG KAPOOR SR. DR /ASSESSEE BY SHRI MAYANK PATAWARI CA /O R D E R PER H.S. SIDHU J.M. 1. THIS APPEAL FILED BY THE REVENUE AND CROSS OBJEC TION FILED BY THE ASSESSEE AGAINST THE IMPUGNED ORDER DATED 30.11.201 5 PASSED BY THE LD. ACIT VS. JAI BEVERAGES/ I.T.A.NO.401/DEL/2016/A.Y.2 012-13 AND JAI BEVERAGES VS. ACIT/CROSS OBJECTION NO. 90/DEL/2 016 PAGE 2 OF 5 CIT(APPEALS)-24 NEW DELHI IN RELATION TO ASSESSMEN T YEAR 2012-13 ON THE FOLLOWING GROUNDS: GROUNDS OF ITA NO. 401/DEL/2016 : - 1. THE ORDER OF LD. CIT(A) IS NOT CORRECT IN LAW AND FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY U/S 271AAA OF THE ACT AMOUNTING TO RS. 38 49 680/-. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT (A) HAS ERRED IN HOLDING THAT THE INCLUSION OF ADDITIONAL I NCOME WITHOUT ANY DOCUMENTARY EVIDENCE AFTER THE SEARCH IN P&L ACCOUNT BY THE ASSESSEE DOES NOT REPRESENT UNDISCLO SED INCOME OF THE ASSESSEE. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT (A) HAS ERRED IN HOLDING THAT THE INCLUSION OF INCOME IN P &L ACCOUNT DOES NOT CONSTITUTE AN ENTRY IN BOOKS OF ACCOUNT. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT (A) HAS ERRED IN RELYING ON THE ORDER OF ITAT DELHI IN CAS E OF NEERAJ SIGNAL VS. ACIT CENTRAL CIRCLE (2013) 37 TAXMAN.COM 189 WHEN THE FACTS OF THIS CASE ARE DIFFERENT. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT (A) HAS ERRED IN HOLDING THAT PAYMENT OF TAX AND INTEREST O N UNDISCLOSED INCOME WAS DONE BY THE ASSESSEE IN ABS ENCE OF ANY SPECIFIC PROOF IN THIS REGARD. 7. THE APPELLANT CRAVES LEAVE TO ADD AMEND ANY/ALL GR OUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF TH E APPEAL. GROUNDS OF CROSS OBJECTION NO. 90/DEL/2016 : - 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE T HE LD. CIT(APPEALS) ERRED BOTH IN FACTS AND IN LAW IN UPHO LDING THE ACIT VS. JAI BEVERAGES/ I.T.A.NO.401/DEL/2016/A.Y.2 012-13 AND JAI BEVERAGES VS. ACIT/CROSS OBJECTION NO. 90/DEL/2 016 PAGE 3 OF 5 VALIDITY OF PENALTY PROCEEDINGS U/S 271AAA OF THE I NCOME TAX ACT 1961 THOUGH NO REASONABLE OPPORTUNITY OF BEIN G HEARD WAS AFFORDED TO THE ASSESSEE BEFORE IMPOSING PENALT Y AS CONTEMPLATED IN SECTION 271AAA(4) READ WITH SECTION 274(1) OF THE INCOME TAX ACT 1961. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LD. CIT(APPEALS) ERRED BOTH IN FACTS AND IN LAW IN UPHO LDING THE CONTENTION OF THE AO THAT IMPOSITION OF PENALTY U/S 271AAA OF THE INCOME TAX ACT 1961 IS MANDATORY AND NOT DISCR ETIONARY IN NATURE. 2. WE HAVE HEARD THE LEARNED CIT (D.R.) WHO HAS PO INTED OUT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW MONETARY L IMIT PRESCRIBED BY THE CBDT. WE FIND THAT THE CBDT VIDE CIRCULAR NO.17/201 9 DATED 8 TH AUGUST 2019 [F.NO.279/ MISC.142/ 2007-ITJ (PT)] BY AMENDIN G PARA 3 OF CBDT CIRCULAR NO.3/2018 DATED 11.07.2018 HAS ENHANCED TH E MONETARY LIMIT FOR FILING OF APPEAL BEFORE TRIBUNAL TO RS.50 LAKHS AND HAS ALSO REMOVED THE ANOMALY IN PARA 5 OF SAID CIRCULAR NO. 3/2018. WE FIND THAT THE PRESENT CASE DOES NOT FALL WITHIN THE EXCEPTIONS CL AUSE 10 OF SAID CBDT CIRCULAR NO. 3/2018. THEREFORE THE PRESENT APPEAL IS NOT MAINTAINABLE AS PER ABOVE CIRCULAR NO. 17/2019 HENCE DISMISSED. TH IS CIRCULAR IS APPLICABLE TO ALL PENDING APPEALS AS CLARIFIED BY C BDT LETTER DATED 20.08.2019 [F. NO. 279/MISC./M-93/2018-ITJ] AND IN THE LIGHT OF JUDGEMENT OF HON`BLE SUPREME COURT IN THE CASE OF P R. CIT JAIPUR V. MEENAKSHI MODI SLP (CIVIL) DIARY NO. 25076 OF 2019- DATED 16.08.2019 ACIT VS. JAI BEVERAGES/ I.T.A.NO.401/DEL/2016/A.Y.2 012-13 AND JAI BEVERAGES VS. ACIT/CROSS OBJECTION NO. 90/DEL/2 016 PAGE 4 OF 5 WHEREIN THE HON`BLE SUPREME COURT HAS DISMISSED THE APPEAL OF REVENUE AS TAX INVOLVED WAS LESS THAN RS. 2 CRORES . HOWEVER THE REVENUE IS AT LIBERTY TO APPROACH TO THIS TRIBUNAL FOR RECALLING THIS ORDER IF IT IS COMES TO THE NOTICE OF THE AO THAT THE TAX EFFECT IS MORE THAN THE MONETARY LIMIT PROVIDED UNDER ABOVE CIRCULAR OR THE APPEALS IS FALL WITHIN AMBIT OF THE EXCEPTIONS PROVIDED UNDER THE SAID CIR CULAR. 3. AT THE TIME OF HEARING LD. COUNSEL FOR THE ASSE SSEE STATED THAT THE TAX EFFECT IN THE DEPARTMENTAL APPEAL IS LESS THAN 50 LAKHS. KEEPING IN VIEW THE LATEST INSTRUCTIONS IT MAY BE DISMISSED. 4. AS REGARDS ASSESSEES CROSS OBJECTION IS CONCERN ED SINCE WE HAVE ALREADY DISMISSED THE REVENUES APPEAL ON ACCOUNT O F LOW TAX EFFECT AS AFORESAID HENCE THE CROSS OBJECTION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND DISMISSED AS SUCH. 5. IN THE RESULT THE APPEAL FILED BY THE DEPARTMEN T AS WELL AS CROSS OBJECTION OF THE ASSESSEE STAND DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.11.201 9 SD/- SD/- (R.K. PANDA) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 21 ST NOVEMBER 2019 *KAVITA ARORA SR. PS ACIT VS. JAI BEVERAGES/ I.T.A.NO.401/DEL/2016/A.Y.2 012-13 AND JAI BEVERAGES VS. ACIT/CROSS OBJECTION NO. 90/DEL/2 016 PAGE 5 OF 5 COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A) / ITAT (DR)/GUARD FILE OF ITAT. BY ORDER ASSISTANT REGISTRAR ITAT: DELHI BENCHES-DELHI