ACIT,Circle-35(1), New Delhi V. Navita Srikant, Delhi

ITA 2143/DEL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4448 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2014-2015
• Appeal Filed On: 27-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH FRIDAY - E : NEW DELHI BEFORE SHRI H.S. SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 2143/DEL/2018 (ASSESSMENT YEAR: 2014 - 15 ) ASST. COMMISSIONER OF INCOME TAX, CIRCLE 35(1), NEW DELHI VS SMT. NAVITA SRIKANT, E - 65, KAMLA NAGAR, DELHI - 110007 PAN: AOBPS9145P (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. AMIT KATOCH, SR. DR RESPONDENT BY: NONE DATE OF HEARING 15.02.2019 DATE OF PRONOUNCEMENT 18 .02.2019 O R D E R PER PRASHANT MAHARISHI, A. M. 1 . THIS APPEAL FILED BY THE DEPARTMENT IS DIR ECTED AGAINST THE ORDER DATED 20.11.2017 OF LD . CIT(A) - 12 , NEW DELHI FOR THE ASSESSMENT YEAR 20 14 - 15 . ASSESSEE, RESPONDENT HAS MADE A REQUEST FOR EARLY HEARING OF THE APPEAL. AFTER H EARING THE LD SR DR AND ALSO LOOKING AT THE LETTER DATED 24/1/2019 SUBMITTED BY THE ASSESSEE , IT WAS NOTICED THAT THIS APPEAL OF DEPARTMENT IS COVERED BY THE ISSUE OF LOW TAX EFFECT. THEREFORE REQUEST FOR EARLY HEARING IS GRANTED AND APPEAL OF THE LD AO IS HEARD ON THIS ASPECT. 2 . ASSESSEE VIDE LETTER DATED 24/1/2019 HAS SUBMITTED THE TAX WORKING WHERE BY THE TAX EFFECT IN THIS APPEAL IS RS 16.33 LAKHS. THIS TAX EFFECT WAS VERIFIED BY THE LD DR. THEN LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO. 03 / 2018 DATED 11 TH 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 R EVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. LD AR ALSO REITERATED SAME FACTS. PAGE 2 OF 4 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 FILING 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 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 APPEAL OF THE REVENUE IS 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 AFOR ESAID 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 FILED BY THE REVENUE IS NOT MAINTAINABLE. 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 8 / 0 2/2019 . - S D / - - S D / - ( H.S. SIDHU ) ( PRASHANT MAHARISHI ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 8 / 0 2 /201 9 SH COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT PAGE 3 OF 4 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI