ACIT, Cir, 38 (1), New Delhi V. Anila Kumar Bhutani, New Delhi

ITA 2243/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 5584 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 09-06-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D N KAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA : VICE PRESIDENT AN D SHRI D.R. SINGH: JUDICIAL MEMBER ITA NO. 2243/DEL/08 A.Y. 2005-06 ACIT CIRCLE 38(1), VS. AIL KUMAR BHUTANI, NEW DELHI. 17, EAST GURU ANGAD NAGAR, STREET NO. 1, DELHI-92. PAN/ GIR NO. AAMPB 5542N (APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI D.N. KAR SR. DR . RESPONDENT BY : NONE O R D E R PER G.E. VEERABHADRAPPA, V.P : THIS APPEAL, BY THE REVENUE, ARISES OUT OF THE ORDE R DATED 14-3-2008 OF THE CIT(A) FOR A.Y. 2005-06. 2. NONE PUT IN APPEARANCE ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE FOR HEARING. WE HAVE HEARD LEARNED DR AND HAVE GONE THR OUGH THE MATERIAL ON RECORD. 3. GROUNDS TAKEN BY THE REVENUE IN THIS APPEAL ARE AS UNDER: 1. THE LEARNED CIT(A) HAS ERRED IN IGNORING THE F ACT THAT THE ASSESSEE FAILED TO PROVE THE CREDITWORTHINESS OF CASH LOANS OF RS. 60,000/- RECEIVED FROM FOUR PERSONS AND AGREED/ OFFERED THE SAME TO BE TAXED BY SIGNING ON ORDER SHEET DATED 27-09-2007. H ENCE, THE DELETION OF THE ADDITION OF RS. 66,000/- BY THE CI T(A) OUT OF CASH LOANS WAS WITHOUT APPRECIATING THE FACT. 2. THE LEARNED CIT(A) HAS ERRED IN GIVING THE ELIE F BY RESTRICTING THE DISALLOWANCES TO THE EXTENT OF 1/10 TH OF THE EXPENSE INCURRED UNDER THE HEADS OF LABOUR WELFARE EXPENSES, CELL PHONE EX PENSES AND VEHICLE RUNNING EXPENSES AGAINST 1/6 TH AN 1/8 TH OF EXPENSES RESPECTIELY, IGNORING THE FACT THAT THE SAID DISALL OWANCES WERE MADE AS THE ASSESSEE AGREED FOR THE SAME AS PER ORDER DA TED 27-09-2007. 2 4. AT THE TIME OF HEARING THE LEARNED DR CONCEDED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS. 2 LAKHS AND THEREFORE IN VIEW OF THE BOARDS CIRCULAR DATED 24-10-2005 AS ALSO BOARDS INSTRUCTION NO. 5 OF 200 7 DATED 16-7-2007 THE REVENUES APPEAL IS NOT MAINTAINABLE. 5. AS PER CBDT CIRCULAR DATED 24-10-2005, APPEALS B Y THE REVENUE ARE TO BE FILED ONLY IN CASES WHERE THE TAX EFFECT EXCEEDS RS. 2 LA CS. THE SAID CIRCULAR IS APPLICABLE TO THE PENDING MATTERS ALSO. THE POSITION HAS BEEN CLARIFI ED BY SUBSEQUENT INSTRUCTION OF THE BOARD BEING INSTRUCTION NO. 5 OF 2007 DATED 16-7-2 007, WHICH PROVIDES THAT MONETARY LIMITS FOR FILING APPEALS PERTAINED TO TAX EFFECT O NLY EXCLUDING INTEREST. THE ITAT IN THE CASE OF ACIT VS. RAJOO ENGINNERS LTD. 100 ITD 555 H AS HELD THAT THE SAID CIRCULAR IS APPLICABLE TO THE PENDING MATTERS ALSO. WE MAY ALSO OBSERVE THAT THE HONBLE SUPREME COURT IN THE CASE OF TANNA & MODI VS. CIT 292 ITR 2 09 ORDER DATED 17-05-2007 HAS OBSERVED THAT EXECUTIVE INSTRUCTIONS ARE BINDING ON THE AUTHORITIES UNDER THE INCOME TAX ACT, 1961. 6. IN VIEW OF ABOVE, REVENUES APPEAL IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 28-1-2009. ( D.R. SINGH ) ( G.E. VEERABHADRAPPA ) JUDICIAL MEMBER VICE PRESIDENT DATED: _____________ FEB. 2009. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR