ITO, Gurgaon V. Deep Shakti Chits Pvt. Ltd., New Delhi

ITA 1321/DEL/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5500 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-02-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 06-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA SENIOR
• Keywords: Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH B, NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.1321/DEL./2013 (ASSESSMENT YEAR: 2005-06) ITO, WARD I (1), VS. M/S. DEEP SHAKTI CHITS PVT. LTD., GURGAON. 60/16, SOHNA CHOWK, BASAI ROAD, GURGAON. ( PAN : AABCD8690E) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.S. SINGHVI, CA REVENUE BY : SM T. NIDHI SRIVASTAVA, SENIOR DR O R D E R PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YE AR 2005-06 ARISES OUT OF THE ORDER OF LD. CIT (APPEALS), FARIDABAD. 2. THE TOTAL ADDITION MADE TO THE INCOME OF THE ASS ESSEE AS PER ASSESSING OFFICERS ORDER DATED 15.12.2010 WAS OF RS.8,62,910/-. LD. C OUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS LESS THAN R S. 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 THE TRIBU NAL IF THE TAX EFFECT IS LESS THAN RS. 3.00 LAKH. HE PLACED RELIANCE ON THE DECISION OF HO NBLE DELHI HIGH COURT DATED ITA NO.1321/DEL/2013 2 25.03.2011 IN ITA NOS. 3 TO 5/2010. ON THE OTHER HAND, LD. DR FOR THE REVENUE SUBMITTED THAT INSTRUCTION NO. 3/2011 IS NOT APPL ICABLE FOR THE APPEALS FILED PRIOR TO ISSUE OF THE SAID INSTRUCTIONS. IT IS ALSO SU BMITTED THAT THE DECISION OF FULL BENCH OF PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT V S. VIRENDRA CONSTRUCTION CO., 239 CTR 1, THAT REVISED MONETARY LIMITS ARE NOT AP PLICABLE TO THE PENDING APPEALS, IS IN FAVOUR OF THE REVENUE. 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUG H THE MATERIAL AVAILABLE ON RECORD. INSTRUCTION NO. 3/2011 DATED 09.02.2011 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOM E-TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE TRIBUNAL IS RS. 3.00 LAKH; BEFORE HONBLE HIGH COURT RS. 10.00 LAKH AND BEFORE HONBLE SUPREME COURT RS. 25.00 LAKH. HONBLE DELHI HIGH COURT IN THEIR ORDER DATED 25.03.2011 REFERRED TO ABOVE HAS HELD AS U NDER:- IT IS STATED THAT THE TAX IMPACT IN THE PRESENT CASES IS LESS THAN RS. 10.00 LAKHS. THE DEPARTMENT HAS RECENTLY ISSUED AN INSTRUCTION BEARING NO. 3/2011 DATED 09.02.2011, WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING NO. 5/2008 DATED 15.05.2008 EXCEPT THAT IN SO FAR AS THE HIGH COURT IS CONCERNED, THE MONETARY LIMIT IN RESPECT OF APPEALS WHERE THE QUESTIONS OF LAW RAISED NEED NOT TO B E ANSWERED, HAS BEEN RAISED FROM RS. 4.00 LAKHS TO RS. 10.00 LAKHS. T HE DIVISION BENCH OF THIS COURT IN ITA NO. 89/1999 DECIDED ON 28.01.2 011 HAS ALREADY HELD THAT THE INSTRUCTION BEARING NO. 5/2008 DATED 1 5.05.2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD THUS NATURALLY EQUALLY APPLY TO THE INSTANT INSTR UCTION BEARING NO.3/2011 DATED 09.02.2011, AS WELL. THE TAX EFFECT BEING LESS THAN RS. 10.00 LAKHS, THE QUESTION OF LAW DOES NOT REQUIRE TO B E ANSWERED. THE APPEALS ARE DISPOSED OF ACCORDINGLY. ITA NO.1321/DEL/2013 3 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 LT D. IN ITA NO. 128/2008 DATED 03.03.2011 WHEREIN IT HAS BEEN 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 TH OSE CASES WHERE THE TAX EFFECT IS LESS THAN RS. 10.00 LAKHS, 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 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES. 3.2 IN VIEW OF THE DECISION OF HONBLE DELHI HIGH COURT, WHICH IS THE JURISDICTIONAL HIGH COURT IN THIS CASE, IT IS HELD THAT INSTRUCT ION NO. 3/2011 DATED 09.02.2011 WILL APPLY TO ALL PENDING APPEALS. RESPECTFULLY FOLL OWING THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS. 3.00 LAKHS. 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 13 TH DAY OF FEBRUARY, 2014. SD/- SD/- (U.B.S. BEDI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 13 TH DAY OF FEBRUARY, 2014 TS ITA NO.1321/DEL/2013 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A), KARNAL. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.