DCIT, New Delhi V. M/s. Euro Motors Pvt. Ltd, New Delhi

ITA 2630/DEL/2012

• Counselvise Citation: 263020114 RSA 2012
• Duration Of Justice: 2 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-05-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P DAM KANUNJIASR
• Keywords: Tax effect

Judgement Text

1 ITA NO. 2630/DEL/12 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH. T.S.KAPOOR, ACCOUNTANT MEMBER I.T.A .NO.-263 0/DEL/2012 (ASSESSMENT YEA R-2007-08 ) DCIT CIRCLE-11(1), ROOM NO. 312, C.R. BUILDING, NEW DELHI (APPELLANT) VS EURO MOTORS PVT. LTD. F-85, OKHLA INDUSTRIAL AREA, PHASE-1 NEW DELHI AABCE3458Q (RESPONDENT) APPELLANT BY SH.R.S. SINGHVI, CA RESPONDENT BY SH.P. DAM KANUNJIA,SR.DR ORDER PER DIVA SINGH, JM BY THE PRESENT APPEAL FILED BY THE REVENUE THE CORR ECTNESS OF THE ORDER DATED 14/3/2012 OF LD. CIT(A)XIII PERTAINING TO 2007-08 A SSESSMENT YEAR HAS BEEN ASSAILED ON THE FOLLOWING GROUNDS. 1. ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAWS, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.12, 28,227/- MADE ON ACCOUNT OF DISALLOWANCE OF 2/3 OF PROMOTIONAL EXPEN SES. 2. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEN D ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. 2. RIGHT AT THE OUTSET LD. AR APPEARING ON BEHALF OF THE ASSESSEE OBJECTED TO THE MAINTAINABILITY OF THE PRESENT APPEAL ON THE GR OUNDS THAT THE TAX INVOLVED IS LESS THATN RS. 4 LAKH AS SUCH IT IS CONTRARY TO INSTRUCT ION NO. 5/2014 DATED 10/7/2014 WHICH HAS FIXED THE MONETARY LIMIT OF RS. 4 LAKH. IN SUPPORT OF HIS CLAIM RELIANCE WAS PLACED ON VARIOUS ORDERS OF THE CO-ORDINATE BEN CH AND ALSO JUDGMENT OF THE DATE OF HEARING 07.05.2015 DATE OF PRONOUNCEMENT 15.05.2015 2 ITA NO. 2630/DEL/12 APEX COURT IN ALEXANDER GEORGE VS. CIT (2015) 373 4 9(SC). THE LD. SR. DR STATED THAT ALTHOUGH THE TAX EFFECT INVOLVED IN TH E PRESENT APPEAL WAS LESS THAN RS. 4 LAKH, HOWEVER, ON THE DATE OF FILING THE APPEAL T HE LIMIT WAS R. 3 LAKH. NO CONTRARY DECISION WAS CITED BY HIM IN ORDER TO CANV ASS THAT A CONTRARY VIEW CAN BE TAKEN. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY AS PER RECENT CBDT INSTRUCTION NO. 5/2014 DATED 10/7/2014, THE MONETARY LIMIT FOR FILING APPEAL BY THE DEPARTM ENT BEFORE THE ITAT HAS BEEN REVISED TO RS.4 LACS. CONSIDERING THE SAME, IT IS A LSO SEEN THAT THE CO-ORDINATE BENCHES AT DELHI CONSISTENTLY HAVE HELD THAT THE D EPARTMENTAL APPEALS, INVOLVING TAX EFFECT BELOW RS. 4 LACS, ARE NOT MAINTAINABLE B EFORE THE ITAT. THE VIEW HAS BEEN TAKEN FOLLOWING THE DECISION OF THE HONBLE JU RISDICTIONAL DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. REFEREN CE MAY ALSO BE MADE TO THE ORDER DATED 3/3/2011 WHERE BY FOLLOWING THE EARLIER ORDER DATED 2/8/2010 IN ITA NO. 179/1991 IN THE CASE OF CIT DELHI-IIIVS. M/S P. S. JAIN & CO., IT HAS HELD THAT SUCH INSTRUCTION/CIRCULAR WOULD ALSO BE APPLICABLE TO PENDING CASES. RELIANCE HAS ALSO BEEN PLACED ON 319 ITR 347 (DELHI) AND 335/ITR 591(DELHI) .IN THE FACTS OF THE PRESENT CASE ADMITTEDLY THE TAX EFFECT INVOLVED IS BELOW RS.4 LAKHS WHICH HAS NOT BEEN DISPUTED BY THE LD. SR. DR. THEREFORE, IN VIEW OF THE REVISED INSTRUCTION OF THE CBDT, REFERRED TO ABOVE, AND FOLLOWING THE D ECISIONS OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF DELHI RACE CLUB LTD., ETC . SUPRA, THE DEPARTMENTAL APPEAL , IT IS SEEN IS NOT MAINTAINABLE. 3. RESPECTFULLY FOLLOWING THE DECISION OF THE JURIS DICTIONAL HIGH COURT IN VIEW OF THE ABOVE FACTUAL POSITION WE HOLD THAT INSTRUC TION NO.5/2014 DATED 10/07/2014 WILL APPLY TO THE PRESENT APPEAL. AS A RESULT, THE DEPARTMENTS APPEAL IS DISMISSED AS NOT MAINTAINABLE. 3 ITA NO. 2630/DEL/12 4. IN THE RESULT, APPEAL FILED BY THE DEPARTMENT IS DISMISSED WITHOUT GOING INTO THE MERITS. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 15 TH OF MAY , 2015. SD/- SD/- (T. S. KAPOOR) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15 /05/2015 *R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI SL.NO. DESCRIPTION DA TE 1. DATE OF DICTATION BY THE AUTHOR 07/05/2015 2. DRAFT PLACED BEFORE THE DICTATING MEMBER 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT APPROVED BY THE SECOND MEMBER 5. DATE OF APPROVED ORDER COMES TO THE SR. PS 6. DATE OF PRONOUNCEMENT OF ORDER 7. DATE OF FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER 4 ITA NO. 2630/DEL/12