ACIT, New Delhi V. M/s. Hi Line Pens Pvt. Ltd., New Delhi

ITA 1170/DEL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6749 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 04-01-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 28-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN RAWAL
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C : NEW DELHI BEFORE SHRI H.S.SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI , ACCOUNTANT MEMBER I TA NO .1170/ DEL/ 2013 (ASSESSMENT YEAR: 2001 - 02 ) ACIT, CIRCLE - 12(1), NEW DELHI VS. HI LINE PENS PVT. LTD., 229, OKHLA INDUSTRIAL ESTATE, PHASE - III, NEW DELHI PAN:AAACH2452E (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. ROBIN RAWAL, SR. DR RESP ONDENT BY: SH. M.P. RASTOGI, ADV DATE OF HEARING 04/01/2016 DATE OF PRONOUNCEMENT 23 /02/2016 O R D E R PER PRASHANT MAHARISHI , A . M . 1 . TH IS APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 02/09/2012 OF LD CIT(A) - XXVII, NEW DELHI FOR THE ASSESSMENT YEAR 2001 - 02 . 2 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. A R BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.10 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVE NUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT . LD D R ALSO REITERATED SAME FACTS. 3 . WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. I FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT FOR FILING THE APP EAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFF ECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.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 PAGE 2 OF 2 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS B ELOW RS.10 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAI D INSTRUCTION SICNE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. 5.1 IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MA INTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.10 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. SINCE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT, THEREFORE, THE CROSS OBJECTION OF THE ASSESSEE BECOMES INFRACTUOUS AND ACCORDINGLY DISMISSED. 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 3 / 02/2016 . - S D / - - S D / - ( H.S.SIDHU) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 3 /0 2 / 2016 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI