ITO, New Delhi V. Sh. Sahib Singh Harit, New Delhi

ITA 1999/DEL/2012

• Counselvise Citation: 199920114 RSA 2012
• Duration Of Justice: 2 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 24-12-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 30-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R R KUMAR SENIOR
• Assessee Lawyers: KAMLESH KUMAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.1999/DEL./2012 (ASSESSMENT YEAR : 2005-06) ITO, WARD 29 (4), VS. LATE SHRI SAHIB SINGH HARIT, NEW DELHI. THROUGH L/R MRS. DANWATI DEVI HARIT ( WIFE), E 95, GREATER KAILASH I, NEW DELHI 110 048. (PAN : AAWPH1059E) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KAMLESH KUMAR, CA REVENUE BY : SHRI B.R.R. KUMAR, SENIOR DR O R D E R PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE REVENUE EMANATES FROM THE ORDER OF THE CIT (APPEALS)-XXV, NEW DELHI DATED 16.01.2008 FOR THE A SSESSMENT YEAR 2005-06. THE ONLY GROUND TAKEN BY THE REVENUE IS A GAINST THE DELETION OF THE ADDITION OF RS.9,80,743/- MADE BY THE ASSESSING OFFICER U/S 69A OF THE INCOME-TAX ACT, 1961 WITH OUTEXAMINING THE SOURCE O F EXPENDITURE. 2. AT THE OUTSET OF THE HEARING, LD. AR SUBMITTED T HAT IN THIS CASE, THE TAX EFFECT ON THE DELETED ADDITION IS LESS THAN THE THRESHOLD LIMIT, I.E. RS.4 ITA NO.1999/DEL./2012 2 LACS. THE ASSESSMENT YEAR IN THE APPEAL IS 2005-0 6. THE APPEAL HAS BEEN FILED ON 30.04.2012. 4. WE FIND THAT THE TAX EFFECT IN THIS CASE IS L ESS THAN RS.4 LACS. AS PER THE RECENT CBDT INSTRUCTION NO.5/2014 DATED 10. 07.2014, THE REVENUE IS NOT PERMITTED TO FILE APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.4.00 LAKH. WE FIND SUPPORT FROM THE DECISI ON OF HONBLE SUPREME COURT DATED 25.03.2011 IN ITA NOS. 3 TO 5/2010. LD . DR FOR THE REVENUE SUBMITTED THAT INSTRUCTION NO. 5/2014 IS NOT APPLIC ABLE FOR THE APPEALS FILED PRIOR TO ISSUE OF THE SAID INSTRUCTIONS. IT IS ALSO SUBMITTED THAT THE FULL BENCH OF PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. VIRENDRA CONSTRUCTION CO., 239 CTR 1, HELD THAT REVISED MONETARY LIMITS ARE NOT APPLICABLE TO THE PENDING APPEALS, AND IT IS IN FA VOUR OF THE REVENUE. 5. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH TH E MATERIAL AVAILABLE ON RECORD. INSTRUCTION NO.5/2014 DATED 10.07.2014 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE D EPARTMENT BEFORE INCOME-TAX APPELLATE TRIBUNAL, HONBLE HIGH COURT S AND HONBLE SUPREME COURT. MONETARY LIMIT FOR FILING THE AP PEAL BEFORE THE TRIBUNAL IS RS.4.00 LAKH; BEFORE HONBLE HIGH COURT RS. 10.0 0 LAKH AND BEFORE HONBLE SUPREME COURT RS. 25.00 LAKH. HONBLE S UPREME COURT IN THE ORDER DATED 25.03.2011 REFERRED TO ABOVE HAS HELD AS UNDER:- ITA NO.1999/DEL./2012 3 IT IS STATED THAT THE TAX IMPACT IN THE PRESENT CASES IS LESS THAN RS. 10.00 LACS. THE DEPARTMENT HAS R ECENTLY ISSUED AN INSTRUCTION BEARING NO. 3/2011 DATED 09.02.2011, WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING NO. 5/2008 DATED 15.05.2008 EXCEPT THAT IN SO FAR AS THE HIGH COURT IS CONCERNED, THE MONETARY LIMIT IN RESPECT OF APPEALS WHERE THE QUESTIONS OF LAW R AISED NEED NOT TO BE ANSWERED, HAS BEEN RAISED FROM RS. 4.00 LACS TO RS. 10.00 LACS. THE DIVISION BENCH OF TH IS COURT IN ITA NO. 89/1999 DECIDED ON 28.01.2011 HAS A LREADY HELD THAT THE INSTRUCTION BEARING NO. 5/2008 D ATED 15.05.2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD TH US NATURALLY EQUALLY APPLY TO THE INSTANT INSTRUCTIO N BEARING NO.3/2011 DATED 09.02.2011, AS WELL. THE TAX EF FECT BEING LESS THAN RS. 10.00 LACS, THE QUESTION OF L AW DOES NOT REQUIRE TO BE ANSWERED. THE APPEALS ARE DI SPOSED OF ACCORDINGLY. 5.1 HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008 DATED 03.03.2011 HA S HELD AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS. 4,65,860/-. AS PER THE RECENT GUIDELINES OF THE CBDT, APPEAL IN THOSE CASES WHERE THE TAX EFFECT IS LE SS THAN RS. 10.00 LACS, ARE NOT TO BE ENTERTAINED. THIS COURT IN THE CASE OF CIT, DELHI-III VS. M/S P .S. JAIN & CO., BEING ITA NO. 179/1991 DECIDED ON 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES. 5.2 IN VIEW OF THE ABOVE, INSTRUCTION NO. 5/2014 DATED 10.07.2014 WILL APPLY TO ALL PENDING APPEALS. RESPECTFULLY FOLL OWING THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX ITA NO.1999/DEL./2012 4 EFFECT IS LESS THAN RS.4 LACS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 6. IN THE RESULT, APPEAL FILED BY THE DEPARTMENT IS DISMISSED WITHOUT GOING INTO THE MERITS. ORDER PRONOUNCED IN OPEN COURT ON THIS 24 TH DAY OF DECEMBER, 2014. SD/- SD/- (I.C. SUDHIR) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 24 TH DAY OF DECEMBER, 2014 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXV, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.