ITO, New Delhi v. M/s. Sahi Trading Company, New Delhi

ITA 5507/DEL/2016 | 2012-2013
Pronouncement Date: 15-11-2019 | Result: Dismissed

Appeal Details

RSA Number 550720114 RSA 2016
Assessee PAN ABXFS5638N
Bench Delhi
Appeal Number ITA 5507/DEL/2016
Duration Of Justice 3 year(s) 21 day(s)
Appellant ITO, New Delhi
Respondent M/s. Sahi Trading Company, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 15-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 15-11-2019
Assessment Year 2012-2013
Appeal Filed On 25-10-2016
Judgment Text
ITA NO.- 5507/DEL/2016 SAHI TRADING COMPANY PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: G: NEW DELHI) BEFORE SHRI AMIT SHUKLA JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA ACCOUNTANT MEMBER ITA NO:- 5507/DEL/2016 ( ASSESSMENT YEAR: 2012-13) INCOME TAX OFFICER WARD-41(5) ROOM NO. 1911 BLOCK-E-2 CIVIC CENTRE NEW DELHI VS. M/S SAHI TRADING COMPANY B - 41 2 ND FLOOR HARI NAGAR NEW DELHI PAN NO: ABXFS5638N APPELLANT RESPONDENT C.O. NO.- 8/DEL/2017 ARISING FROM ITA NO:- 5507/DEL/2016 ( ASSESSMENT YEAR: 2012-13) REVENUE BY : SH. S.S. RANA CIT (DR) ASSESSEE BY : SH. MANOJ KUMAR CA PER ANADEE NATH MISSHRA AM (A) THE AFOREMENTIONED APPEALS BY REVENUE AND CROSS OB JECTION (CO FOR SHORT) BY ASSESSEE ARE TAKEN UP TOGETHER FOR THE SAKE OF CONVENIENCE AND BREVITY AND ARE M/S SAHI TRADING COMPANY B - 41 2 ND FLOOR HARI NAGAR NEW DELHI VS. ITO WARD - 41(5) ROOM NO. 1911 BLOCK E-2 CIVIC CENTRE NEW DELHI PAN NO: ABXFS5638N APPELLANT RESPONDENT ITA NO.- 5507/DEL/2016 SAHI TRADING COMPANY PAGE 2 OF 5 HEREBY DISPOSED OFF THROUGH THIS CONSOLIDATED ORDER . GROUNDS TAKEN IN THE APPEAL OF REVENUE AND THE CROSS OBJECTION OF THE ASSESSEE ARE AS UNDER: ITA NO.- 5507/DEL/2016 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS NOT JUSTIFIED IN DELETING THE TRADING ADDITION OF RS. 9 0 92 739/- BEING 2% OF THE TOTAL SALES OF RS. 45 46 36 960/- MADE BY THE AO AFTER RE JECTING THE BOOKS OF ACCOUNTS U/S 145(3) OF THE ACT. 2. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS NOT JUSTIFIED IN IGNORING THE FINDINGS OF THE ASSESSING OFFICER BY DELETING THE ADDITION OF RS. 1 03 518/- MADE BY AO ON ACCOUNT OF UNEXPLAI NED CREDITORS BY HOLDING THAT THE PAYMENT OF THESE CREDITORS IS MADE IN THE SUBSEQUENT YEAR. CO NO. 8/DEL/2017 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW LD. CIT APPEAL HAS RIGHTLY DELETED ADDITION MADE ON THE BASIS OF PROFI T RATE OF 2% BECAUSE IN THE SUBSEQUENT YEARS LD. AO HAS HIMSELF ACCEPTED THE PR OFIT RATE IN THE CASE OF THE ASSESSEE AS PER PAST HISTORY. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW LD. CIT IS JUSTIFY IN DELETING THE ADDITION OF RS. 1 03 518/- BEING UNEXP LAINED TRADE CREDITORS TO WHOM PAYMENTS HAVE BEEN MADE IN THE SUBSEQUENT YEAR S. (B) AT THE OUTSET LEARNED AUTHORIZED REPRESENTATIVE ( AR FOR SHORT) FOR THE ASSESSEE BROUGHT TO OUR NOTICE AT THE TIME OF HEAR ING THAT TAX EFFECT IN THESE APPEALS FILED BY REVENUE IS BELOW RS. 50 00 000/-. BOTH SI DES [REPRESENTATIVES OF REVENUE AND THE ASSESSEE] WERE IN AGREEMENT AT THE TIME OF HEARING BEFORE US THAT THE TAX EFFECT IN THE PRESENT APPEALS ARE BELOW RS. 50 00 0 00/-. VIDE RECENT CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 READ WITH EARLIER CBDT CIR CULAR 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 HAS BEEN ENHANCED TO RS. 50 00 000/-. IN A SUBSEQUENT ITA NO.- 5507/DEL/2016 SAHI TRADING COMPANY PAGE 3 OF 5 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 REVIS ED MONETARY LIMIT IS ALSO APPLICABLE TO ALL PENDING APPEALS IN ITAT. HAVING REGARD TO T HE AFORESAID LEARNED AR FOR THE ASSESSEE SUBMITTED THAT THE APPEALS WERE NOT MAINTA INABLE. THE LEARNED DEPARTMENTAL REPRESENTATIVE (LD. DR FOR SHORT) ALSO DID NOT P RESS THESE APPEALS. THEREFORE BOTH THESE APPEALS FILED BY REVENUE ARE DISMISSED BEING NOT MAINTAINABLE; AND ALSO BEING NOT PRESSED. (B.1) THE LD. AR FOR THE ASSESSEE ALSO SUBMITTED THAT TH E CO OF ASSESSEE HAS BEEN FILED IN SUPPORT OF ORDER OF LD. CIT(A) TO OPPOSE T HE GROUND TAKEN IN REVENUES APPEAL. HOWEVER THE CO HAS BECOME INFRUCTUOUS AND NEED NOT BE DECIDED ON MERITS ON DISMISSAL OF REVENUES APPEAL VIDE ITA NO.- 5507/DE L/2016. THE CROSS OBJECTION WAS NOT PRESSED BY LD. COUNSEL OF ASSESSEE AT THE TIME OF HEARING. THE LD. DR FOR REVENUE WAS IN AGREEMENT WITH THE AFORESAID SUBMISSIONS OF THE LD. COUNSEL FOR ASSESSEE. IN VIEW OF THE FOREGOING AND AS BOTH SIDES AGREE THE CO IS DISMISSED BEING INFRUCTUOUS AND HAVING BEEN NOT PRESSED. (C) BEFORE WE PART WE EXPRESSLY CLARIFY THAT REVEN UE WILL BE AT LIBERTY TO APPROACH INCOME TAX APPELLATE TRIBUNAL U/S 254(2) O F INCOME TAX ACT 1961; SEEKING RESTORATION OF ONE OR MORE OF THESE A PPEALS IF IT IS FOUND THAT APPEAL OF REVENUE IS NOT COVERED BY AFORESAID CBDT CIRCULARS DATED 08.08.2019 AND 11.07.2018. (D) IN THE RESULT THESE TWO APPEALS FILED BY REVENUE A RE DISMISSED BEING NOT MAINTAINABLE AND THE CORRESPONDING CROSS OBJECTION FILED BY ASSESSEE IS DISMISSED ITA NO.- 5507/DEL/2016 SAHI TRADING COMPANY PAGE 4 OF 5 BEING INFRUCTUOUS. OUR DECISION WAS ORALLY PRONOUN CED IN OPEN COURT AFTER CONCLUSION OF HEARING ON THE DATE OF HEARING. NOW THIS DETAIL ED WRITTEN ORDER IS PRONOUNCED IN THE OPEN COURT ON 15.11.2019. SD/- SD/- (AMIT SHUKLA) (ANADEE NATH MIS SHRA) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED: 15/11/2019 SH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 5507/DEL/2016 SAHI TRADING COMPANY PAGE 5 OF 5 DATE OF DICTATION 13.11.2019 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. P S/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING 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 WE BSITE OF ITAT 18.11.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 18.11.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 18.11.201 9