ACIT, New Delhi V. Sh. Rahul Chawla, New Delhi

ITA 1859/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87073 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 19-02-2015
• Assessment Year: 1995-1996
• Appeal Filed On: 20-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDRAKAR
• Assessee Lawyers: ANUJ DHIR
• Keywords: Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C , NEW DELHI BEFORE S MT. DIVA SINGH, JUDICIAL MEMBER AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 1858 /DEL/201 2 AY: 199 5 - 96 ACIT, CENTRAL CIRCLE 10 VS. SH. HEMANT CHAWLA JHANDEWALAN 42/19, EAST PATEL NAGAR NEW DELHI NEW DELHI PAN: AAEPC 6410 E A N D ITA NO. 1859 /DEL/201 2 AY: 1995 - 96 ACIT, CENTRAL CIRCLE 10 VS. SH. RAHUL CHAWLA JHANDEWALAN 42/19, EAST PATEL NAGAR NEW DELHI NEW DELHI PAN: AAFPC 5043 E (APPELLANT) (RESPONDENT) APPELLANT BY : S H, J.P.CHANDRAKAR, SR.D.R. RESPONDENT BY : SH. ANUJ DHIR, ADV. ORDER P ER BENCH BOTH THESE APPEALS ARE FILED BY THE REVENUE AGAINST TWO INDIVIDUALS AND ARE DIRECTED AGAINST THE COMMON O RDER DATED 29.11.2011 OF LD.CIT(A) - XXVI, DELHI PERTAINING TO THE ASSESSMENT YEAR 199 5 - 96 . 2. SINCE THE GROUNDS RAISED IN THE APPEAL ARE COMMON, WE DISPOSE OF THE APPEAL S BY THIS CONSOLIDATED ORDER. ITA NO.1858/DEL/2012, SH.HEMANT CHAWLA ITA 1859/DEL/2012, SH.RAHUL CHAWLA A.Y. 1995 - 96 2 THE GROUNDS RAISED IN THE APPEAL OF THE REVENUE ARE AS UNDER: 1. THAT THE CI(A) ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE ADDITION OF RS.10,00,000/ - MADE BY THE AO ON A CCOUNT OF UNDISCLOSED INCOME. 2. (A) THE ORDER OF THE CIT(A) IS ERRONEOUS AND NOT TENABLE IN LAW AND ON FACTS. (B) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. 3. WE HAVE HEARD SHRI ANUJ DHIR, THE LD.COUNSEL FOR THE ASSESSEE AND SHRI JP CHANDRAKAR, ON BEHALF OF THE REVENUE. ON A QUERY FROM THE BENCH THE LD.D.R. VEHEMENTLY CONTENDED THAT THE TAX EFFECT IN THE CASE ON HAND IS MORE THAN THE LIMIT PRESCRIBED BY THE CBDT AT THE TIME OF FILING OF THE APPEAL AND THAT THE FRESH CIRCULAR OF THE CBDT CLEARLY MENTIONS THAT THE TAX EFFECT LIMIT OF RS.4 LAKHS IS PROSPECTIVE IN NATURE AND HENCE THE LIMITS PRESCRIBED IN THE CIRCULAR CANNOT BE APPLIED TO APPEALS FILED FOR THE EARLIER ASSESSMENT YEARS I.E. 1999 - 2000. IT CONTENDED THAT THE LIMIT APPLIES TO APPEALS FILED AFTER THE DATE OF THE CIRCULAR. 4 . TH E LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THE APPEAL S OF THE REVENUE, IS BELOW THE PRESCRIBED LI MIT OF RS.4 LAKHS FOR FILING OF APPEAL BEFORE THE ITAT. THE CBDT IN ITS INSTRUCTION NO. 5/2014, PRESCRIBED THE REVISED MONETARY LIMIT FOR FILING APPEAL TO TRIBUNAL AT RS.4 LACS. IT WAS CONTENDED THAT THIS REVISED MONETARY LIMITS ARE APPLICABLE TO P ENDING CASES. 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE TRIBUNAL, IN THE CASE OF DCIT VS. SUSHILA SARAOGI (2014) (11) TMI 294 ITAT KOLKATA, AFTER CONSIDERING THE PRECEDENTS ON THE SUBJECT, HELD THAT THE INSTRUCTION NO.5/14, ISSUED BY THE CBDT ON 10.7.2014 IS APPLICABLE TO THE PENDING APPEALS. THE TRIBUNAL FOLLOWED THE PROPOSITION LAID DOWN IN THE JUDGEMENTS OF VARIOUS HIGH COURTS, INCLUDING THE TWO JUDGEMENTS OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS . M/S PS JAIN & CO. IN ITA 179/1991 DT. 2.8.2010 AND IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. DT. 3.3.2011. WE RESPECTFULLY FOLLOW THE CO - ORDINATE BENCH ORDER. IN THE INSTANT ITA NO.1858/DEL/2012, SH.HEMANT CHAWLA ITA 1859/DEL/2012, SH.RAHUL CHAWLA A.Y. 1995 - 96 3 CASE S , AS THE TAX EFFECT BEING BELOW RS. 4 LACS, WE WITHOUT GOING INTO THE ISSUE ON MERIT S , DISMISS THE APPEAL S OF THE REVENUE IN LIMINE AS NOT MAINTAINABLE. IT IS TO BE MENTIONED THAT THE LD.DR WAS UNABLE TO POINT OUT ANY EXCEPTIONAL CIRCUMSTANCES, MENTIONED IN BOARD INSTRUCTION NO.5 OF 2014 THAT HAVE LED TO FILING OF TH ESE APPEAL S , DESPITE THE FACT OF THE MONETARY LIMIT BEING BELOW THE PRESCRIBED LIMIT. 6. IN THE RESULT BOTH THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH M ARCH, 2015. SD/ - SD/ - ( DIVA SINGH ) ( J. SUDHAKAR REDDY ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 25 TH MARCH , 2015 MANGA COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR