DCIT, New Delhi V. Sh. Sunil Agarwal, New Delhi

ITA 3028/DEL/2009

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98194 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 22-12-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 30-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMU BARNWAL
• Assessee Lawyers: VIKASH KUMAR YADAV
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI N.K.SAINI, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO , JUDICIAL MEMBER ITA NO. 3028 /DEL/ 2009 (ASSESSMENT YEAR: 2006 - 07 ) DCIT, CIRCLE - 16(1), NEW DELHI VS. SUNIL AGARWAL, A - 38, GULMOHAR PARK, NEW DELHI ( ASSESSEE ) (RESPONDENT) APPELLANT BY : SMT. ANIMU BARNWAL, SR. DR RESPONDENT BY : SH. VIKASH KUMAR YADAV, CA DATE OF HEARING 22.12.2015 DATE OF PRONOUNCEMENT 22 . 12 .2015 O R D E R PER VIJAY PAL RAO, JM THIS IS AN APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 30.04.2009 OF LD. CIT(A) - XIX, NEW DELHI FOR THE ASSESSMENT YEAR 2006 - 07 . 2. AT THE OUTSET OF THE HEARING ITSELF, THE LD. AR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.10 LAKHS. H E HAS ALSO FILED THE COMPUTATION TO SHOW THAT THE TAX EFFECT IN THIS CASE IS BELOW RS.10 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DISMISSED AS PER THE INSTRUCTION OF THE CBDT AND ALSO SUBMITTED THAT THE CROSS OBJECTION PREFERRED BY T HE ASSESSEE IS NOT PRESSED. 3. LD. DR WAS FAIR ENOUGH TO ADMIT THE AFORESAID FACTUAL POSITION. 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 F ILING 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 WHER E THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - PAGE NO. 2 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 APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 5. WE FIND THAT THE TAX EFFECT ON THE DISPUTED AMOUNT IN THE APPEAL OF THE REVENUE IS BELOW RS.10 LAKHS. TH ERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HA VE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SICNE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. 5 .1 IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 WILL APPLY TO ALL PENDING APPEALS. THEREFORE, 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, APPEAL FILED BY THE DEPARTMENT IS DISMISSED WITHOU T GOING INTO THE MERITS. ORDER PRONOUNCED IN THE OPEN COURT ON 22 .12 .201 5 . - SD/ - - SD/ - ( N.K.SAINI ) ( VIJAY PAL RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22 / 12 / 2015 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI