ITO, New Delhi V. Sh. Vinay Goel, Noida

ITA 113/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8226 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 13-04-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V R SONBHADRA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI : JUDICIAL MEMBER ITA NO. 113/DEL/2014 ASSTT. YR: 2006-07 INCOME-TAX OFFICER, VS. VINAY GOEL, WARD-25(4), NEW DELHI. F-1, SECTOR-11, NOIDA. PAN: AJMPG 0960 E ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI V.R. SONBHADRA, SR. DR ASSESSEE BY : SH. SACHIN KUMAR CA DATE OF HEARING : 13/04/2016. DATE OF ORDER : 19/04/2016. O R D E R PER S.V. MEHROTRA, A.M: THIS IS REVENUES APPEAL AGAINST THE ORDER DATED 2 1.10.2013, PASSED BY THE LD. CIT(A)-XXIV, NEW DELHI IN APPEAL NO. 296 /08-09, RELATING TO A.Y. 2006-07. 2. PRIMA FACIE, THE TAX EFFECT INVOLVED IN THE PRES ENT APPEAL IS LESS THAN RS. 10 LAKHS. THE RECENT CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015 STIPULATES THAT NO DEPARTMENTAL APPEAL, INVOLVING TAX EFFECT BELOW RS.10 LAKHS, SHALL BE FILED BEFORE THE ITAT. PARA 10 OF T HE CIRCULAR SPECIFIES THAT 2 SUCH INSTRUCTION WOULD APPLY RETROSPECTIVELY AND TH E PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH MAY BE WITHDR AWN/NOT PRESSED. 3. LD. DR COULD NOT CONTROVERT THE AFOREMENTIONED FACTUAL POSITION. HE, HOWEVER, REFERRING TO CLARIFICATION GIVEN IN PARAGR APH 7 OF THE CIRCULAR, SUBMITTED THAT WITHDRAWAL OF THE APPEAL BY THE REVE NUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEAL AN D, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISES BEFORE THE ITA T, WHERE THE APPEAL IS ABOVE THE TAX LIMIT, AS PRESCRIBED IN THIS CIRCULAR , THE SAME SHOULD BE DECIDED ON MERITS. 4. SINCE THE TAX EFFECT INVOLVED IN THE PRESENT DE PARTMENTAL APPEAL IS BELOW 10 LAKHS, THEREFORE, IN VIEW OF RECENT CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015, THIS APPEAL IS NOT MAINTAINABLE I N TERMS OF SECTION 268A(1) OF THE INCOME-TAX ACT. HOWEVER, WE MAY CLAR IFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT INVOLVED IS ABOVE RS.10 LACS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE WILL BE A T LIBERTY TO TAKE SUCH STEPS, AS DEEM FIT, TO RECALL THE ORDER. WE ALSO AGREE WI TH THE CONTENTION OF THE LEARNED DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WI LL NOT BE AN ESTOPPEL FOR 3 THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS A PPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THA N 10 LAKHS. 5. KEEPING IN VIEW THE AFOREMENTIONED CBDT CIRCUL AR AND THE PROVISIONS OF SECTION 268A OF THE INCOME-TAX ACT, 1 961, WITHOUT GOING INTO MERITS OF THE CASE, WE DISMISS THE INSTANT APPEAL F ILED BY THE REVENUE AS TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10.00 LACS. 6. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED . ORDER PRONOUNCEMENT IN OPEN COURT ON 19/04/2016. SD/- SD/- (BEENA A. PILLAI) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 19/04/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.