ITO, Meerut V. Smt. Malti Devi Chikara, Meerut

ITA 179/DEL/2012

• Counselvise Citation: 17920114 RSA 2012
• Duration Of Justice: 3 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 16-03-2015
• Assessment Year: 2001-2002
• Appeal Filed On: 12-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K SAMPATH ADV SHRI V RAJKUMAR
• Assessee Lawyers: P DAM KANUNJHA
• Keywords: Unexplained investment; Valuation report; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E, NEW DELHI) BEFORE SHRI G. C. GUPTA, HONBLE VICE PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO. 179/DEL/2012 ASSESSMENT YEAR : 2001-02 ITO, WARD 1(4), VS. SMT. MALTI DEVI CHIKARA, MEERUT 381, NEW MOHANPURI, MEERUT. GIR / PAN:AKVPD4947L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K SAMPATH, ADV. SHRI V RAJKUMAR, ADV. RESPONDENT BY : SHRI P. DAM KANUNJHA, SR. DR DATE OF HEARING : 16.03.2015 DATE OF PRONOUNCEMENT : 18.03.2015 ORDER PER T.S. KAPOOR, AM: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE ORDER OF LD. CIT(A), MEERUT DATED 24.10.2011. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPE AL: 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT (APPEALS) HAS ERRED IN DELETING THE ADDITION OF RS. 5,55,932/- MADE BY THE A.O. ON ACCOUNT OF UNEXPLAINED INVESTMENT IN CO MMERCIAL BUILDING RELYING UPON THE VALUATION REPORT PREPARED BY VALUA TION OFFICER AFTER TAKING INTO CONSIDERATION ALL RELEVANT DOCUMENTS AN D SUBMISSIONS OF THE ASSESSEE AS WELL AS ALL TECHNICAL ASPECTS RELAT ING TO THE CONSTRUCTION. COST OF COMMERCIAL BUILDING WHEREAS T HE LD. CIT(APPEAL) WAS NOT A TECHNICAL EXPERT IN THIS FILE D ON PAGE 17 OF HIS ORDER HE HAD HIMSELF ADMITTED THAT HE IS NOT A TECH NICAL PERSON TO COMMENT UPON THE REPORT OF VALUATION OFFICER. ITA NO.4281/DEL/2012 2 2. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LD. CIT (A) WAS JUSTIFIED IN LAW IN RESTRICTING THE ADDITIO N OF RS.24,000/- TO RS.12,000/- MADE BY THE A.O. ON ACCOUNT OF UNDISCLO SED RENTAL INCOME WITHOUT GIVING ANY REASONS. 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) MAY BE SET ASI DE AND THAT OF THE A.O. BE RESTORED. 3. AT THE OUTSET, LD.A.R. SUBMITTED THAT TAX EFFECT IN THIS APPEAL IS LESS THAN RS.4,00,000/-, THEREFORE, THE D EPARTMENT OUGHT NOT TO HAVE FILED THIS APPEAL IN VIEW OF THE CIRCUL AR ISSUED BY THE CBDT AND THE PROVISIONS CONTAINED IN SECTION 268A O F THE INCOME TAX ACT, 1961 (HEREINAFTER TO BE REFERRED AS THE ACT). 4. THE LD. D.R., ALTHOUGH SUPPORTED THE ORDER OF TH E ASSESSING OFFICER, BUT COULD NOT CONTROVERT THIS FACT THAT TA X EFFECT IN THIS APPEAL IS LESS THAN RS.4,00,000/-. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. D.R . AND THE MATERIAL ON RECORD, IT IS NOTICED THAT SECTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RETROSPECTIV E EFFECT FROM 01/04/99. THE PROVISIONS CONTAINED IN SECTION 268A READ AS UNDER: 268A. (1) THE BOARD MAY, FROM TIME TO TIME, ISSUE ORDERS, INSTRUCTIONS OR DIRECTIONS TO OTHER INCOME- TAX AUTHORITIES, FIXING SUCH MONETARY LIMITS AS IT MAY DEEM FIT, FOR THE PURPOSE OF REGULATING FILING OF APPEAL OR APPLICATION FOR REFERENCE BY ANY INCOME-TAX AUTHORI TY UNDER THE PROVISIONS OF THIS CHAPTER. ITA NO.4281/DEL/2012 3 6. IT IS NOTICED THAT THE CBDT HAS ISSUED INSTRUCTI ON NO.5 OF 2014 DATED 10.07.2014, BY WHICH THE CBDT HAS REVISE D THE MONETARY LIMIT TO RS. 4,00,000/- FOR FILING THE AP PEAL BEFORE THE TRIBUNAL. 7. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT OUGHT NOT TO HAVE FILED THE APPEAL IN VIEW OF THE ABOVE SAID PROVISIONS MENTION ED IN SECTION 268A OF THE ACT SINCE THE TAX EFFECT IN THE INSTANT CASE IS LESS THAN THE AMOUNT PRESCRIBED FOR NOT FILING THE APPEA L. 8. THOUGH INSTRUCTION NO.5 DATED 10.07.2014 MENTION S THAT LIMIT OF RS.4,00,000/- WILL BE APPLICABLE FOR CASES FILED AFTER 10.07.2014 BUT THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT V. DELHI RACE CLUB LTD. IN ITA NO.128/2008, ORDER D ATED 03.03.2011 BY FOLLOWING THE EARLIER ORDER DATED 02.08.2010 IN ITA NO.179/1991 IN THE CASE OF CIT DELHI-III V. M/S. P.S. JAIN & CO. HELD THAT SUCH CIRCULAR WOULD ALSO BE APPLICABLE TO PENDING CASES. 9. FROM THE RATIO LAID DOWN BY THE HONBLE DELHI HI GH COURT, IT IS CLEAR THAT THE INSTRUCTIONS ISSUED IN THE CIR CULARS BY CBDT ARE APPLICABLE FOR PENDING CASES ALSO. THEREFORE, BY KEEPING IN VIEW THE RATIO LAID DOWN IN THE AFORESAID REFERRED TO CASES, WE ARE OF THE CONSIDERED VIEW THAT INSTRUCTION NO.5/14 DATED 10.07.2014 ISSUED BY THE CBDT ARE APPLICABLE FOR TH E PENDING ITA NO.4281/DEL/2012 4 CASES ALSO AND IN THE SAID INSTRUCTIONS, MONETARY T AX LIMIT FOR NOT FILING THE APPEAL BEFORE THE ITAT IS RS. 4.00 LAKHS . 10. IN VIEW OF THE ABOVE, WITHOUT GOING INTO MERITS OF THE CASE, WE DISMISS THE APPEAL FILED BY THE REVENUE. 11. IN THE RESULT, APPEAL OF THE REVENUE STAND DISM ISSED. 12. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH, 2015. SD./- SD./- (G. C. GUPTA ) (T.S. KAPOOR) VICE PRESIDENT ACCOUNTANT MEMBER DATE: 18 TH MARCH, 2015 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 5/3 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 9,9, SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS 18/3/2015 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 18/3 SR. PS/PS 7 FILE SENT TO BENCH CLERK 18/3 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER