DCIT, New Delhi V. Sh. Kedar Nath Babbar, New Delhi

ITA 1609/DEL/2012

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2716 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 31-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 04-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA
• Assessee Lawyers: K R MANJANI
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : D : NEW DELHI BEFORE SHRI J.S. REDDY, ACCOUNTANT MEMBER, AND S HRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO. 1609 /DEL /20 1 2 ] ASSESSMENT YEAR : 20 07 - 08 THE DY. C.I.T VS. SHRI KEDAR NATH BABBAR CIRCLE 30(1) 7, NETAJI SUBHASH MARG NEW DELHI DARYA GANJ, NEW DELHI - 2 DATE OF HEARING : 31 . 12 . 2015 DATE OF PRONOUNCEMENT : 04 . 01.2016 APPELLANT BY : SHRI P. DAM KANUNJNA, SR. DR RESPONDENT BY : SHRI K.R. MANJANI ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - XX V , NEW DELHI, DATED 13 / 01 /20 12 FOR A.Y 200 7 - 08 . 2. THIS APPEAL HAS BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LA KH FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME - TAX ACT. ITA NO. 1609 /DEL/201 2 2 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATED 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE 1TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT - DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FURTHER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. THE LEARNED COUNSEL F OR THE ASSESSEE, ON T HE OTHER HAND, STATED THAT THE C IRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPEAL OF THE REVENUE . ITA NO. 1609 /DEL/201 2 3 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN THESE APPEALS BY THE R EVENUE IS BELOW RS. 10.00 LA KH S AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEALS PARTICULARLY BECAUSE THE PENDING APPEAL I S COVERED BY CIRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESS ING OFFICER FINDS THAT T HE TAX EFFECT IS ABOVE RS.10 LAKH S OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORDER WHICH TH E TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THESE APPEALS AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUES, INVOLVED IN THESE APPEALS, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LA KH S. 7. KEEPING IN VIEW THE ABOVE CIRCULAR AND THE PROVISIONS OF SECTION 268A OF THE INCOME - TAX ACT, 1961 AND WITHOUT GOING INTO MERITS OF THE CASES, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THE APPEAL IS LESS THAN RS.10 LA KHS . ITA NO. 1609 /DEL/201 2 4 8 . IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED AS WITHDRAWN . THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 4 . 01 .201 6 . S D / - S D / - ( J.S. REDDY ) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 4 T H JANUARY , 2015 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI