DCIT, New Delhi V. M/s. Landbase India Ltd., New Delhi

ITA 2071/DEL/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4787 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 07-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4723 /DEL/ 2010 ( ASSESSMENT YEAR: 2007 - 08) ITA NO. 2071/DEL/2014 ( ASSESSMENT YEAR: 2009 - 10) DCIT, CIRCLE - 4(1), ROOM NO. 407, CR BUILDING, IP ESTATE, NEW DELHI VS. LANDBASE INDIA LIMITED, 25, BASANT LOK, VASANT VIHAR, NEW DELHI AAACL0053F (APPELLANT) (RESPONDENT) REVENUE BY : SHRI AMIT JAIN, SR. DR ASSESSEE BY: NONE DATE OF HEARING 26/07/2018 DATE OF PRONOUNCEMENT 0 1 / 0 8 /2018 O R D E R PER PRASHANT MAHARISHI , A. M. 1 . TH ESE ARE THE APPEALS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) - VII, NEW DELHI DATED 01.09.2010 FOR THE ASSESSMENT YEAR 2007 - 08 AND LD CIT(A) - VIII, NEW DELHI DATED 28.01.2014 FOR THE ASSESSMENT YEAR 2009 - 10. 2 . AT THE OUTSET OF THE HEARING ITSELF, T HE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.03/2018 DATED 11TH JULY 2018 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.20 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. LD AR ALSO REITERATED SAME FACTS. 3 . WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 11 TH JULY 2018 HAS REVISED THE MONETARY LIMIT FOR FILIN G THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT(IN RS.) 1. BEFORE APPELLATE TRIBUNAL 20,00,000 2. BEFORE HIGH COURT 50,00,000 DCIT LANDBASE INDIA LIMITED, ITA NO.4723/DEL/2010 AND 2071/DEL/2014 (ASSESSMENT YEAR: 2007 - 08 AND 2009 - 10) PAGE | 2 3. BEFORE SUPREME COURT 1,00,00,000 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE SE APPEAL S OF THE REVENUE ARE BELOW RS.20 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.20 LAKHS. 5. IN VIEW OF THE ABOVE, CIRCULAR NO.3/2018 DATED 10.07.2018 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.20 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL S FILED BY THE REVENUE ARE NOT MAINTAINABLE. 6. IN THE RESULT, APPEAL S FILED BY THE DEPARTMENT ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 0 1 / 0 8 /2018 . - S D / - - S D / - (AMIT SHUKLA) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 1 / 0 8 /2018 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI