ITO Ward -20 (3), V. Anju Jain,

ITA 300/DEL/2008

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6607 (ITAT-DELHI)
• Duration Of Justice: 9 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-02-2017
• Assessment Year: 1999-2000
• Appeal Filed On: 31-01-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K JAIN
• Keywords: Tax effect
• Section: 68

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SHRI H.S.SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI , ACCOUNTANT MEMBER I TA NO . 300/DEL/2008 (ASSESSMENT YEAR: 1999 - 2000 ) ITO, WARD - 20(3), NEW DELHI VS. MS. ANJU JAIN, H - 7A, MODEL TOWN, DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. SK JAIN, DR REVENUE BY: NONE DATE OF HEARING 28/02/ 2017 DATE OF PRONOUNCEMENT 28 / 02 / 2017 O R D E R PER PRASHANT MAHARISHI , A . M . 1. THIS APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER OF THE LD CIT(A) - XXII, NEW DELHI DATED 04/12/2007 FOR THE ASSESSMENT YEAR 1999 - 2000. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THE LD CIT(A) ERRED IN LAW AND ON FACTS IN D ELETING THE ADDITION OF RS. 1929696/ - MADE BY THE AO TREATING THE CREDIT ENTRY AS ACCOMMODATION ENTRY IN THE ACCOUNT OF THE ASSESSEE U/S 68 OF THE IT ACT, 1961. 2. THE LD CIT(A) ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 28945/ - BEING THE AM OUNT OF COMMISSION PAID TO PURCHASE THE ACCOMMODATION ENTRY OF RS. 1929696/ - . 3. AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 HAS DECIDED THAT THE REVENUE WOULD NOT PR EFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.10 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. 4. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 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 PA RA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - PAGE 2 OF 2 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 10,00,000 2. BEFORE HIGH COURT 20,00,000 3. BEFORE SUPREME COURT 25,00,000 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 APPE AL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 5. WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.10 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BIND ING 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.10 LAKHS. 5. IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 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.10 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 2 8 / 02 / 2017 . - S D / - - S D / - ( H.S.SIDHU ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 8 / 02 / 2017 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI