M/s. Infiniti Power Pvt. Ltd., New Delhi V. DCIT, New Delhi

CO 275/DEL/2012

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 0365 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 18-03-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 12-03-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 25-07-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: VENKTESH CHAURASIA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI C.M. GARG : JUDICIAL MEMBER ITA NO. 2648/DEL/2012 ASSTT. YR: 2004-05 DCIT, CIRCLE 11(1), VS. M/S INFINITY POWER PVT. LT D., NEW DELHI. B-138, MOHAMMADPUR, BIKAJI CAMA PLACE, NEW DELHI. PAN: AAACI 3802 K AND C.O. NO. 275/DEL/2012 (ITA NO. 2648/DEL/2012 ) ASSTT. YR: 2004-05 M/S INFINITY POWER PVT. LTD., VS. DCIT, CIRCLE 11( 1), B-138, MOHAMMADPUR, NEW DELHI. BIKAJI CAMA PLACE, NEW DELHI. ( APPELLANT ) ( RESPONDENT ) DEPARTMENT BY : SHRI T. VASANTHAN SR. DR ASSESSEE BY : SHRI VENKTESH CHAURASIA CA DATE OF HEARING : 12-03-2015 DATE OF ORDER : 18-03-2015. O R D E R PER S.V. MEHROTRA, A.M: : THE APPEAL BY THE DEPARTMENT AND THE CROSS-OBJECTIO N, BY THE ASSESSEE, ARE DIRECTED AGAINST CIT(A)S ORDER DATED 12-3-2012 REL ATING TO A.Y. 2004-05. BOTH 2 THE MATTERS WERE HEARD TOGETHER AND ARE BEING DISPO SED OF BY A CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE VERY OUT SET CONTENDED THAT THE TAX EFFECT INVOLVED IN THE DEPARTMENTAL APPEAL IS BELOW RS. 4 LACS AND, THEREFORE, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE IN VIEW OF RECENT CBDT INSTRUCTION, WHICH IS BINDING ON THE DEPARTMENT. 3. ON THE OTHER HAND, THE LEARNED DR CONTENDED THA T THE APPEAL SHOULD NOT BE DISMISSED ON ACCOUNT OF TAX EFFECT ONLY. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE ENTIRE MATERIAL ON RECORD. AS PER RECENT CBDT INSTRUCTION NO. 5/2014 DATED 10-7-2014 , THE MONETARY LIMIT FOR FILING APPEAL BY THE DEPARTMENT BEFORE THE ITAT HAS BEEN R EVISED TO RS. 4 LACS. THUS, THE DEPARTMENTAL APPEAL, INVOLVING TAX EFFECT BELOW R S. 4 LACS, IS NOT MAINTAINABLE BEFORE THE ITAT. THE HONBLE JURISDICTIONAL DELHI HIGH COU RT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008, ORDER DATED 03.03.20 11, BY FOLLOWING THE EARLIER ORDER DATED 02.08.2010 IN ITA NO. 179/1991 IN THE CASE OF CIT DELHI-III VS. M/S P.S. JAIN & CO., HAS HELD THAT SUCH INSTRUCTION/ CIRCULAR WOUL D ALSO BE APPLICABLE TO PENDING CASES. 4.1. ADMITTEDLY THE TAX EFFECT INVOLVED IN THE PRES ENT APPEAL IS BELOW RS. 4 LAKHS. THEREFORE, IN VIEW OF THE REVISED INSTRUCTION OF T HE CBDT, REFERRED TO ABOVE, AND THE HONBLE JURISDICTIONAL HIGH COURTS DECISION IN THE CASE OF DELHI RACE CLUB LTD., SUPRA, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AND IS LIABLE TO BE DISMISSED AS SUCH. WE ORDER ACCORDINGLY. 3 5. SINCE WE HAVE DISMISSED THE REVENUES BEING NOT MAINTAINABLE ON ACCOUNT OF TAX EFFECT, THE CROSS OBJECTION FILED BY THE ASSESSEE H AS BECOME INFRUCTUOUS AND STANDS REJECTED ACCORDINGLY. 6. IN THE RESULT, DEPARTMENTAL APPEAL AS WELL AS TH E CROSS OBJECTION FILED BY THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 18-03-2015. SD/- SD/- (C.M. GARG) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 18-03-2015. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR