ITO, New Delhi V. Sh. Saurabh Aggarwal, New Delhi

ITA 1114/DEL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81838 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 21-10-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 05-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R R KUMAR SENIOR
• Keywords: Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.1114/DEL./2012 (ASSESSMENT YEAR : 2007-08) ITO, WARD 46 (4), VS. SHRI SAURABH AGGARWAL, NEW DELHI. A 61, IST FLOOR, NIZAMUDDIN EAST, NEW DELHI. (PAN : AGOPA5222G) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.S. SINGHVI, ADVOCATE REVENUE BY : SHRI B.R.R. KUMAR, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE REVENUE EMANATES FROM THE ORDER OF THE CIT (APPEALS)-XXX, NEW DELHI DATED 30.12.2011 FOR THE A SSESSMENT YEAR 2007- 08. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS LESS THAN RS. 3.00 LAKH. THIS POSITION IS ADMITTED BY THE LD. D.R. THEREFORE, AS PER THE INSTRUCTION NO. 3/ 2011 DATED 09.02.2011, THE REVENUE IS NOT PERMITTED TO FILE APPEAL BEFORE T HE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.3.00 LAKH. LD. AR PLACED RELIANCE O N THE DECISION OF HONBLE DELHI HIGH COURT DATED 25.03.2011 IN ITA NOS. 3 TO 5/2010. ITA NO.1114/DEL/2012 2 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. INSTRUCTION NO. 3/2011 DATED 09.02.201 1 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPART MENT BEFORE INCOME-TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HON BLE SUPREME COURT. MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE T RIBUNAL IS RS. 3.00 LAKH, BEFORE HONBLE HIGH COURT RS. 10.00 LAKH AND BEFOR E HONBLE SUPREME COURT RS. 25.00 LAKH. HONBLE DELHI HIGH COURT IN THE IR ORDER DATED 25.03.2011 REFERRED TO ABOVE HAS HELD AS UNDER:- IT IS STATED THAT THE TAX IMPACT IN THE PRESENT CASES IS LESS THAN RS. 10.00 LAKHS. THE DEPARTMENT HAS RECENTLY IS SUED AN INSTRUCTION BEARING NO. 3/2011 DATED 09.02.2011, WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING N O. 5/2008 DATED 15.05.2008 EXCEPT THAT IN SO FAR AS THE HIGH CO URT IS CONCERNED, THE MONETARY LIMIT IN RESPECT OF APPEALS WHERE T HE QUESTIONS OF LAW RAISED NEED NOT TO BE ANSWERED, HAS BEEN RAISED FROM RS. 4.00 LAKHS TO RS. 10.00 LAKHS. THE DIVISION BENCH OF THIS COURT IN ITA NO. 89/1999 DECIDED ON 28.01.2011 HAS ALRE ADY HELD THAT THE INSTRUCTION BEARING NO. 5/2008 DATED 15.05. 2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD THUS NATURALLY EQUALLY APPLY TO THE INSTANT INSTRUCTION BEARING NO.3/2011 DATED 09.02.2011, AS WELL. TH E TAX EFFECT BEING LESS THAN RS. 10.00 LAKHS, THE QUESTION OF LAW DOES NOT REQUIRE TO BE ANSWERED. THE APPEALS ARE DISPOSE D OF ACCORDINGLY. 3.1 LD. AR FOR THE ASSESSEE HAS ALSO RELIED ON THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008 DATED 03.03.2011 WHEREIN IT HAS BEEN HEL D AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS. 4,65,860/-. AS PER THE RECENT GUIDELINES OF THE CBDT, APPEAL I N THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS. 10.00 LAK HS, ARE NOT TO BE ENTERTAINED. ITA NO.1114/DEL/2012 3 THIS COURT IN THE CASE OF CIT, DELHI-III VS. M/S P .S. JAIN & CO., BEING ITA NO. 179/1991 DECIDED ON 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDIN G CASES. 3.2 IN VIEW OF THE DECISION OF HONBLE DELHI HIGH COURT, WHICH IS THE JURISDICTIONAL HIGH COURT IN THIS CASE, IT IS HEL D THAT INSTRUCTION NO. 3/2011 DATED 09.02.2011 WILL APPLY TO ALL PENDING APPE ALS. RESPECTFULLY FOLLOWING THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NO T MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS. 3.00 LA KHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 4. IN THE RESULT, APPEAL FILED BY THE DEPARTMENT IS DISMISSED WITHOUT GOING INTO THE MERITS. ORDER PRONOUNCED IN OPEN COURT ON THIS 21 ST DAY OF OCTOBER, 2014. SD/- SD/- (GEORGE GEORGE K.) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 21 ST DAY OF OCTOBER, 2014 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXX, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR/ITAT