DCIT, New Delhi V. M/s. Nucleus Software Exports Ltd., New Delhi

ITA 3206/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3589 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 12-04-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 23-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO.3206/DEL/2014 ASSESSMENT YEARS 2008-09 DCIT, CIRCLE-13(1), NEW DELHI. PAN: AAACN 5382P VS. M/S. NUCLEUS SOFTWARE EXPORTS LTD., 33-35, THYAGRAJ NAGAR MARKET, NEW DELHI. PAN: AAACN 5382P (APPELLANT) (RESPONDENT) REVENUE BY : SHRI RAJESH KUMAR, SR.D.R. ASSESSEE(S) BY : SHRI VINOD GUPTA, C.A. / DATE OF HEARING : 12/04/2017 / DATE OF PRONOUNCEMENT: 12/04/2017 ORDER PER B.P. JAIN, ACCOUNTANT MEMBER THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF CIT(A)-XVI, DELHI DATED 06.02.2014 FOR ASSESSMENT Y EAR 2008-09. 2. AT THE OUTSET, WE NOTED THAT IN THIS CASE THE TA X EFFECT ON THE INCOME UNDER DISPUTE IS LESS THAN RS.10 LAC. WE FURTHER NO TED THAT THE CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 FILE NO.279 OF MISC. 142/2007 ITJ (PT) HAS ISSUED THE DIRECTION IN SUPERSESSION OF THE INSTRUCTION NO.5/2014 DATED 10.07.2014 IN PU RSUANCE WITH THE POWER INTERESTED U/S.268A OF THE INCOME TAX ACT THAT NO A PPEAL SHOULD BE FILED BEFORE THIS TRIBUNAL IN CASE TAX EFFECT DOES NOT EX CEED RS.10 LAC. THE TAX EFFECT IN THIS REGARD MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WHAT HAVE BEEN CHA RGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESP ECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. THIS CIRCULAR FURTHER STATES THAT TAX WILL ITA NO.3206/DEL/2014 2 NOT INCLUDE ANY INTEREST THEREON THE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. WE FURTHER NOTED THAT UNDER PARAGRAPH 10 W HICH IS REPRODUCED AS UNDER, IT HAS BEEN MENTIONED IN THE CIRCULAR THAT T HIS INSTRUCTION WILL APPLY EVEN TO THE PENDING APPEALS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED . APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3. IN THE IMPUGNED CASE, WE NOTED THAT THE TAX EFFE CT ON THE ISSUE UNDER DISPUTE DOES NOT EXCEED RS.10 LAC. IN VIEW OF THIS FACT AS PER THE INSTRUCTION, THE REVENUE IS NOT SUPPOSED TO PRESS THE APPEAL. WE , THEREFORE, DISMISS THE APPEAL FILED BY THE REVENUE IN LIMINE WITHOUT GOING INTO THE MERITS OF THE CASE AS IN OUR OPINION THE CIRCULAR ISSUED BY CBDT ARE BINDING ON THE DEPARTMENTAL OFFICERS IN VIEW OF THE PROVISION OF S ECTION 268A(1) OF THE ACT. THE SAID VIEW HAS BEEN TAKEN BY HONBLE SUPREME COU RT IN THE CASE OF NAVNEET LAL ZAVERI VS. AAEC 56 ITR 198 (SC). WE ACC ORDINGLY DISMISS THE APPEAL FILED BY THE REVENUE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY 12 TH APRIL, 2017 SD/- SD/- (I.C. SUDHIR) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 12/04/2017 PRABHAT KUMAR KESARWANI, SR.P.S. COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(APPEALS) 5.DR: ITAT ASSTT. REGISTRAR, ITAT, NEW DELHI