DCIT, New Delhi v. M/s CKSR Impex International Pvt. Ltd, New Delhi

ITA 5518/DEL/2010 | 2006-2007
Pronouncement Date: 15-07-2011 | Result: Dismissed

Appeal Details

RSA Number 551820114 RSA 2010
Assessee PAN AACCC3384J
Bench Delhi
Appeal Number ITA 5518/DEL/2010
Duration Of Justice 7 month(s) 8 day(s)
Appellant DCIT, New Delhi
Respondent M/s CKSR Impex International Pvt. Ltd, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 15-07-2011
Date Of Final Hearing 05-07-2011
Next Hearing Date 05-07-2011
Assessment Year 2006-2007
Appeal Filed On 07-12-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH B NEW DELHI) BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI B.C. MEENA ACCOUNTANT MEMBER I.T.A. NO.5518/DEL/2010 ASSESSMENT YEAR : 2006-07 DY. CIT DY. CIT DY. CIT DY. CIT VS. VS. VS. VS. M/S CKSR IMPEX INTERNATIONA M/S CKSR IMPEX INTERNATIONA M/S CKSR IMPEX INTERNATIONA M/S CKSR IMPEX INTERNATIONAL (P) L (P) L (P) L (P) CIRCLE CIRCLE CIRCLE CIRCLE- -- -3(1) 3(1) 3(1) 3(1) LTD. D LTD. D LTD. D LTD. D- -- -68 1 68 1 68 1 68 1 ST STST ST FLOOR ASHOK VIKAR FLOOR ASHOK VIKAR FLOOR ASHOK VIKAR FLOOR ASHOK VIKAR NEW DELHI NEW DELHI NEW DELHI NEW DELHI PHASE PHASE PHASE PHASE- -- -I NEW DELHI I NEW DELHI I NEW DELHI I NEW DELHI PAN NO.AACCC 3384 J (APPELLANT) (RESPONDENT) APPELLANT BY :SHRI Y. KAKKAR SR. DR RESPONDENT BY : S/SHRI K. SAMPATH/GAURAV GOEL CA ORDER PER RAJPAL YADAV:JM: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF CIT(A) DATED 29.10.2010 PASSED FOR ASSESSMENT YEAR 2006- 07. THE REVENUE IS IMPUGNING THE DELETION OF DISAL LOWANCE MADE U/S 14A AS WELL AS DIRECTIONS GIVEN TO THE ASS ESSING OFFICER THAT SHORT TERM CAPITAL GAIN DISCLOSED BY T HE ASSESSEE ON UNITS OF MUTUAL FUNDS HELD BY ASSESSEE FOR A PER IOD OF LESS THAN THREE MONTHS SHOULD NOT BE TREATED AS BUSINESS INCOME. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE VERY OUT SET SUBMITTED THAT TAX EFFECT IN THIS APPEAL IS OF `2 2 7 512/- WHICH IS LESS THAN `3 LACS AND THEREFORE APPEAL O F THE 2 REVENUE IS NOT MAINTAINABLE IN VIEW OF THE LATEST I NSTRUCTIONS ISSUED BY THE BOARD. HE PLACED ON RECORD THE COMPU TATION OF TAX WHICH READS AS UNDER:- GROUNDS INCOME TAX EFFECT ` DISALLOWANCE U/S 14A DISALLOWED BY A.O. `7 34 400/- RELIEF BY CIT(A) `1 25 500 AMOUNT IN APPEAL 6 08 900 TAX @ 33.6% 2 04 5900 SHORT TERM CAPITAL GAIN TREATED AS BUSINESS INCOME. ON `1 14 608 DIFFERENTIAL RATE @ 20% 22 922 TOTAL 2 27 512 3. THE LEARNED COUNSEL ALSO PLACED ON RECORD COPY O F THE HONBLE DELHI HIGH COURTS DECISION IN THE CASE OF CIT VS. M/S P.S. JAIN AND COMPANY. HE POINTED OUT THAT HONBLE DELHI HIGH COURT HAS HELD THAT INSTRUCTIONS ISSUED IN THE MONTH OF FEBRUARY 2011 WOULD BE APPLICABLE ON THE PENDING A PPEALS. 4. ON THE OTHER HAND LEARNED DR SUBMITTED THAT FUL L BENCH OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. VIRENDER CONSTRUCTION COMPANY REPORTED IN 2 39 CTR PAGE 1 HAS HELD THAT THESE INSTRUCTIONS WILL NOT BE APPLICABLE ON PENDING APPEALS RATHER THEY WILL GOVERN THE APPE ALS WHICH ARE TO BE FILED AFTER ISSUANCE OF THE INSTRUC TIONS. 5. WE HAVE DULY CONSIDERED THE RIVAL CONTENTION AND GONE THROUGH THE RECORD CAREFULLY. THE TAX IS LESS THAN `3 LACS. THE BOARD HAS ISSUED INSTRUCTION BEARING NO.3 ON 9 TH FEBRUARY 2009 WHEREBY IT HAS DIRECTED THE INCOME T AX 3 AUTHORITIES NOT TO CHALLENGE THE ORDER OF COMMISSIO NER BEFORE THE TRIBUNAL IF TAX EFFECT BECAUSE OF SUCH O RDER IS LESS THAN `3 LACS. THE HONBLE DELHI HIGH COURT IN THES E TWO DECISIONS HAVE OBSERVED THAT THESE INSTRUCTIONS WIL L BE APPLICABLE ON PENDING APPEALS. THE PRESENT APPEAL I S NOT COVERED BY EXCEPTIONS PROVIDED IN THE INSTRUCTIONS. IN VIEW OF THE DELHI HIGH COURTS DECISION THE APPEAL IS N OT MAINTAINABLE HENCE DISMISSED. 6. IN RESULT THE APPEAL OF THE REVENUE IS DISMISSE D. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 15.07.2011. SD/- SD/- ( B.C. MEENA ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DT. 15.07.2011. NS COPY FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DELHI. TRUE COPY. BY ORDER (ITAT NEW DELHI).