ACIT, New Delhi V. M/s. Delhi Hospital Supply (P) Ltd., New Delhi

ITA 1415/DEL/2012

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2900 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 26-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL CHANDER SHARMACIT
• Keywords: Tax effect

Judgement Text

[ 1 ] INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI A.T.VARKEY , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 1415 /DEL/ 2012 (ASSESSMENT YEAR: 2008 - 09 ) ACIT, CENTRAL CIRCLE - 2, ROOM NO.323, 3 RD FLOOR, ARA CENTRE, E - 2, JHANDEWALA EXTN. NEW DELHI VS. DELHI HOSPITAL SUPPLY PVT. LTD., 101, PAL MOHAN SADAN, 26/32, EAST PATEL NAGAR, NEW DELHI PAN:AAACD2901Q (APPELLANT) (RESPONDENT) ASSESSEE BY: SH. SUNIL CHANDER SHARMA,CIT DR RESPONDENT BY: SH. SALIL AGARWAL, ADV SH. SHAILESH GUPTA, ADV DATE OF HEARING : 12 . 01.2016 DATE OF PRONOUNCEMENT : 19 .01.2016 O R D E R PER PRASHANT MAHARISHI, A. M. 1 . THIS IS AN APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 03 .01.2012 OF LD CIT(A) - III , NEW DELHI FOR THE ASSESSMENT YEAR 2008 - 09 . 2 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. AR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.21/2015 DATED 10 TH 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. HE HAS ALSO FILED THE COMPUTATION TO SHOW THAT THE TAX EFFECT IN THIS CASE IS BELOW RS.10 LAKHS. THEREFORE, HE PLEAD ED THAT THE APPEAL OF THE REVENUE BE DISMISSED AS PER THE INSTRUCTION OF THE CBDT AND ALSO SUBMITTED THAT THE CROSS OBJECTION PREFERRED BY THE ASSESSEE IS NOT PRESSED. 3 . LD. DR WAS FAIR ENOUGH TO ADMIT THE AFORESAID FACTUAL POSITION. 4 . WE HAVE HEARD BOTH THE S IDES ON THE ISSUE AND PERUSED THE MATERIAL. I FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT 2 | P A G E FOR FILING THE APPEAL 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 EFFECT 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 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. 5 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.10 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHOR ITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SI N C E 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 MAINTAINABLE 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, A PPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 .01.2016. - SD/ - - SD/ - ( A.T.VARKEY) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 19 /01/2016 A K KEOT COPY FORWARDED TO 1 . APPLICANT 3 | P A G E 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI