ACIT, New Delhi V. M/s. FIIT JEE Ltd., New Delhi

ITA 1134/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3887 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 03-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN KR YADAV
• Assessee Lawyers: ARZOO BATTA
• Keywords: Depreciation; Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C , NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 1134/DEL/2016 ASSESSMENT YEAR: 2006-07 ACIT-CC-06, VS. M/S FIIT JEE LIMITED, R.NO. 330, ARA CENTRE, 29-A, KALUSARAI, ICES HOUSE , JHANDEWALAN EXTN., SARVPRIYA VIHAR, NEW DELHI-16 NEW DELHI (PAN: AAACF2659M) (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. ARUN KR. YADAV, SR . DR ASSESSEE BY : MS. ARZOO BATTA, CA ORDER PER H.S. SIDHU, JM THE DEPARTMENT HAS FILED THIS APPEAL WHICH IS EMAN ATED FROM THE ORDER DATED 30.12.2015 OF LD. CIT(A)-39, NEW DELHI PERTAINING T O ASSESSMENT YEAR 2006-07. THE GROUNDS RAISED IN THE REVENUES APPEAL READS AS UND ER:- 1. THE ORDER OF LD. CIT(A() IS NOT CORRECT IN LAW AND ON FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CI T(A) HAS ERRED IN LAW IN DELETING THE DISALLOWANCE OF RS. 48,284/- MADE B Y THE AO ON ACCOUNT OF DEPRECIATION ON PRINTERS. 3. THE ASSESSMENT WAS MADE AFTER THE DEPARTMENT ACCEPT ED THE REVENUE AUDIT OBJECTION. SINCE, THE CASE FALLS UNDER THE EX CEPTION GIVING CBDTS INSTRUCTION NO. 21/2015 DATED 10.12.2015. THE APPE AL IS BEING FILED EVEN THOUGH THE TAX EFFECT IS LESS THAN RS. 10 LACS . 4. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ANY / ALL THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEA L. 2. DURING THE HEARING, LD. DR RELIED UPON THE ORDER OF THE AO. 3. ON THE CONTRARY, LD. A.R. OF THE ASSESSEE HAS ST ATED THAT TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW THE PRESCRIBED LIMIT, HENCE, THE AP PEAL OF THE REVENUE MAY BE DISMISSED. 2 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECORDS. AFTER PERUSING THE RECORDS, WE FIND THAT TAX EFFECT IN THE REVENUES A PPEAL IS BELOW THE LIMIT OF RS. 10 LACS, AS FIXED BY THE CBDT AND, THEREFORE, THE DEPARTMEN TS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CO NVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS CIRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HE REUNDER: S NO APPEALS IN INCOME -TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCR IBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIB UNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 AB OVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME- TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, T HEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE PRESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE A MOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. 6. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HAVE WIT HDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALSO OF THE VIE W THAT THE SAID INSTRUCTIONS ARE 3 APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO B E FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 7. IN THE RESULT, THE REVENUES APPEAL STANDS DISM ISSED. ORDER PRONOUNCED ON 06/02/2018. SD/- SD/- (L.P. SAHU) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 06/02/2018 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR