M/s. Navjeevan Associates P. Ltd., New Delhi V. ITO, New Delhi

CO 323/DEL/2010

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6190 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 08-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 08-06-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 17-09-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B KISHORE
• Assessee Lawyers: J S KOCHAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH F DELHI ] BEFORE SHRI RAJPAL YADAV, JM & SHRI K. D. RA NJAN, AM I. T. APPEAL NO. 2360 (DEL) OF 2010. ASSESSMENT YEAR : 200102. THE INCOME-TAX OFFICER, M/S. NAVJE EVAN ASSOCIATES P. LTD., W A R D : 13 (1), VS. B14, 3 RD FLOOR, CHIRAG ENCLAVE, N E W D E L H I. N E W D E L H I 110 048. P A N / G I R NO. AAB CN 2230 R. A N D C. O. NO. 323 (DEL) OF 2010. I. T. APPEAL NO. 2360 (DEL) OF 2010. ASSESSMENT YEAR : 200102. M/S. NAVJEEVAN ASSOCIATES P. LTD., THE INCOM E-TAX OFFICER, B14, 3 RD FLOOR, CHIRAG ENCLAVE, VS. W A R D : 13 (1), N E W D E L H I 110 048. N E W D E L H I . P A N / G I R NO. AAB CN 2230 R. ( APPELLANTS ) ( RESPONDENTS ) ASSESSEE BY : SHRI J. S. KOCHAR, C. A.; DEPARTMENT BY : SHRI B. KISHORE, SR. D. R.; O R D E R. PER K. D. RANJAN, AM : THIS APPEAL BY THE REVENUE AND THE CROSS OBJECTION BY THE ASSESSEE FOR ASSESSMENT YEAR 2001-02 ARISE OUT OF THE ORDER OF THE LD. CIT (APPE ALS)XIII, NEW DELHI. THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF, FOR THE SAKE OF CONVENIENCE, BY THIS CONSOLIDATED ORDER. 2 I. T. APPEAL NO. 2360 (DEL) OF 2010 A N D C.O. NO. 323 (DEL) OF 2010 2. AT THE OUTSET LD AR OF THE ASSESSEE SUBMITTED T HAT IN THE INSTANT CASE THE INCOME IN DISPUTE IS OF RS.7,17,500/-. INCOME-TAX AT THE RAT E OF 35 PER CENT AND SURCHARGE AT THE RATE OF 13 PER CENT COMES TO RS.2,83,771/-. THUS THE TAX EFFE CT IN THE CASE OF THE ASSESSEE IS LESS THAN RS.3,00,000/-. HE PLACED RELIANCE ON THE DECISION O F HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA. NO. 128/2008 DATED 3/03/2011 WHEREIN IT HAS BEEN HELD THAT CBDT GUIDE-LINES FIXING THE TAX EFFECT LIMITS FOR F ILING THE APPEAL WOULD ALSO APPLY TO PENDING CASES. CBDT VIDE INSTRUCTION NO. 3/2011 DATED 9-02 -2011 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME-T AX APPELLATE TRIBUNAL TO RS THREE LAHS, SINCE TAX EFFECT IN THE PRESENT CASE IS LESS THAN RS 3,00 ,000/- THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. ON THE OTHER HAND, THE LD. SR. DR REL YING ON THE DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. VARINDER CONSTRUCTION CO. 239 CTR PAGE 1 (P & H) [FB] SUBMITTED THAT MONETARY LIMIT PRESCRIBED UNDER VARIOUS INSTRUCTIONS AND UNDER SECTION 268-A ARE APPLICABLE AT THE TIME OF FILING OF THE A PPEAL AND NOT HEARING THE APPEAL. 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH CBDT INSTRUCTION NO. 3/2011 DATED 9- 02-2011. CBDT VIDE INSTRUCTION NO. 3/2011 DATED 9-0 2-2011 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME-T AX APPELLATE TRIBUNAL , HONBLE HIGH COURT AND HONBLE SUPREME COURT. MONETARY LIMIT FOR FILI NG THE APPEAL BEFORE THE TRIBUNAL IS RS.3,00,000/-; BEFORE HONBLE HIGH COURT RS.10,00,0 00/- AND BEFORE HONBLE SUPREME COURT RS.25,00,000/-. HONBLE DELHI HIGH COURT IN THE CA SE OF CIT VS. DELHI RACE CLUB LTD. IN ITA. NO. 128/2008 DATED 3/03/2011 HAS HELD AS UNDER :- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS.4,65,860/-. AS PER THE RECENT GUIDELINES OF THE CBDT, APPEAL IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS.10,00,000/- ARE NOT TO BE ENTERTAINED. THIS COURT IN THE CASE OF CIT, DELHI-III VS. M/S. P. S. JAIN & CO. BEING ITA. NO. 179/1991 DECIDED ON 02 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR W OULD ALSO APPLY TO THE PENDING CASES. 3 I. T. APPEAL NO. 2360 (DEL) OF 2010 A N D C.O. NO. 323 (DEL) OF 2010 4. IN VIEW OF DECISION OF HONBLE DELHI HIGH COU RT, IT IS CLEAR THAT INSTRUCTION NO. 3/2011 DATED 9/02/2011 WILL ALSO APPLY TO ALL PENDING APPE ALS. THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. ( SUPRA) IS BINDING ON US IN THE CASE OF ASSESSEES CASE. THEREFORE THE RELIANCE PLACED BY L D. SR. DR ON THE DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT (FB) IN THE CASE OF CIT VS. VARI NDER CONSTRUCTION CO.(SUPRA) IS OF NO HELP TO REVENUE. WE, THEREFORE, DISMISS THE APPEALS FIL ED BY THE REVENUE AS NOT MAINTAINABLE. 5. AS REGARDS THE CROSS OBJECTION, SINCE WE HAVE DI SMISSED THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE, THE CROSS OBJECTION FILED BY T HE ASSESSEE BECOMES INFRUCTUOUS AND IS DISMISSED, AS SUCH. 6. IN THE RESULT, BOTH THE I. T. APPEAL FILED BY TH E REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT TODAY ON : 08 TH JUNE, 2011. SD/- SD/- [ RAJPAL YADAV ] [ K. D. RANJAN ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 08 TH JUNE, 2011. *MEHTA * COPY OF THE ORDER FORWARDED TO : - 1. APPELLANTS. 2. RESPONDENTS. 3. CIT, 4. CIT (APPEALS), 5. DR, ITAT, NEW DELHI. TRUE COPY. BY ORDER. ASSISTANT REGISTRAR, ITAT.