ITO (TDS), Moradabad V. Construction Division, Rampur

ITA 1771/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6397 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 25-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: CBDT
• Keywords: Tax effect
• Section: 12A

Judgement Text

1 ITA NO. 1771/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 1771/DEL/2014 ( A.Y 2008-09) ITO (TDS) MORADABAD (APPELLANT) VS CONSTRUCTION DIVISION PWD DIAMOND TALKIES ROAD RAMPUR LKNC05335B (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE DEPARTMENT AGAINST THE ORDER DATED 16/12/2013 OF CIT (A)-, BAREILLY. 2. DURING THE COURSE OF HEARING, IT IS NOTICED THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10,00,000/- I N VIEW OF THE CIRCULAR ISSUED BY THE CBDT AND THE PROVISIONS CONTAINED IN SECTION 268A OF THE INCOME TAX ACT, 1961 (HEREIN AFTER TO BE REFERRED AS THE ACT), THE DEPARTMENT OUGHT NOT T O HAVE FILED THIS APPEAL. APPELLANT BY SH. V. R. SONBHADRA, SR. DR RESPONDENT BY NONE DATE OF HEARING 16.03.2016 DATE OF PRONOUNCEMENT 16.03.2016 2 ITA NO. 1771/DEL/2014 3. THE LD. DR ALTHOUGH SUPPORTED THE ORDER OF THE A .O BUT COULD NOT CONTROVERT THE ABOVE SAID FACT. 4. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT SE CTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RET ROSPECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE A CT PROVIDES THAT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO THE OTHER INCOME-TAX AUTHORITIES FIXING MONETARY LIMITS FOR N OT FILING THE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS , SAID INSTRUCTIONS/DIRECTIONS ARE BINDING ON THE INCOME T AX AUTHORITIES. 5. IT IS NOTICED THAT THE CBDT HAS ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015, VIDE WHICH IT HAS REVISED TH E MONETARY LIMIT TO RS.10,00,000/- FOR NOT FILING TH E APPEAL BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE SA ID CIRCULAR READS AS UNDER: .. 3 ITA NO. 1771/DEL/2014 ... 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S. NO APPEALS IN INCOME -TAX MATTER 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 MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH C ASES IS TO BE DECIDED ON MERITS OF THE CASE. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SH ALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OT HER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX MATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT 4 ITA NO. 1771/DEL/2014 PROVISIONS OF STATUTE & RULES. FURTHER, FILING OF A PPEAL IN CASES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDER SECTIO N 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY THE LIMI TS SPECIFIED IN PARA 3 ABOVE AND DECISION TO FILE APP EAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR C ASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN/ 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. 6. FROM CLAUSE 10 OF THE ABOVE SAID CIRCULAR IT IS CLEAR THAT THESE INSTRUCTIONS ARE APPLICABLE TO THE PENDING AP PEALS ALSO AND AS PER CLAUSE 3, THERE IS CLEAR CUT INSTRUCTION TO THE DEPARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE THE ITAT WHEREIN TAX EFFECT IS LESS THAN RS. 10,00,000/-. THESE INSTRUCTIONS ARE OPERATIVE RETROSPECTIVELY TO THE PENDING APPEALS. 5 ITA NO. 1771/DEL/2014 7. KEEPING IN VIEW THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, WE ARE OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL. 8. CONSIDERING THE SUBMISSIONS, THE REVENUES APPEA L IS DISMISSED AS WITHDRAWN BY THE REVENUE. HOWEVER, THIS WITHDRAW AL OF REVENUES APPEAL WILL NOT HOLD AS PRECEDENCE IN SUB SEQUENT PROCEEDINGS. 9. IN RESULT, THE APPEAL IS DISMISSED AS WITHDRAWN BY THE REVENUE. (ORDER PRONOUNCED IN THE COURT ON 16/03/2016) SD/- SD/- (N. K. SAINI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16/03/2016 *R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR 6 ITA NO. 1771/DEL/2014 ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 16.03.2016 PS 2. DRAFT PLACED BEFORE AUTHOR 16.03.2016 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 16.03.2016 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 16.03.2016 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 16.03.2016 PS/PS 6. KEPT FOR PRONOUNCEMENT ON 16.03.2016 PS 7. FILE SENT TO THE BENCH CLERK 16.03.2016 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.