ITO, Meerut V. Shri Ajay Maheshwari, Meerut

ITA 3752/DEL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3973 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 24-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Tax effect

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C : NEW DELHI BEFORE SHRI S.K.YADAV , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 3752/DEL/2016 (ASSESSMENT YEAR: 2009 - 10 ) ITO, WARD - 1(1), AAYAKAR BHAWAN, BHAINSALI GROUND, MEERUT VS. AJAY MAHESHWA R I, 346, SARI LAL DASS, MEERUT (APPELLANT) (RESPONDENT) REVENUE BY : SHRI S.L. ANURAGI, SR. DR ASSESSEE BY: SHRI ROHIT AGARWAL, FCA DATE OF HEARING 22/06 / 2018 DATE OF PRONOUNCEMENT 0 9 / 0 8 / 2018 O R D E R PER PRASHANT MAHARISHI , A. M. 1 . THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD CIT(A), MEERUT DATED 22.03.2016. 2 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS ERRED IN LAW AND FACT IN CANCELLING THE PENALTY U/S 271(1)(C) OF THE IT ACT, 1961, IGNORING THE FACT THAT THE ASSESSEE CONCEALED THE PARTICULARS OF HIS INCOME AND FURNISHED INACCURATE PARTICULARS OF HIS INCOME SINCE HE DID NOT DECLARE THE LONG TERM CAPITAL GAIN ON THE SALE OF HIS INCOME SINCE HE DID NOT DECLARE THE LONG TERM CAPITAL GAIN ON THE SALE OF HIS LAND ON WHICH HE WAS LIABLE TO PAY TAX. 2. WHETHER IN THE FACTS AND C IRCUMSTANCES OF THE CASE, THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS MAY BE SET ASIDE AND THAT OF THE AO BE RESTORED. 3 . THIS APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 19.12.2012 OF LD CIT(A) - XIII, NEW DELHI FOR TH E ASSESSMENT YEAR 2004 - 05, WHEREIN, PENALTY U/S 271(1)(C) OF RS. 12,60,000/ - LEVIED BY THE LD AO IS DELETED. ITO VS AJAY MAHESHWARI ITA NO. 3752/DEL/2016 (ASSESSMENT YEAR: 2009 - 10) PAGE | 2 4 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.03/2018 DATED 11 TH JULY 2018 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.20 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. 5 . WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 11 TH JULY 2018 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 PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 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 20,00,000 2. BEFORE HIGH COURT 50,00,000 3. BEFORE SUPREME COURT 1,00,00,000 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. 6 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.20 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING 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.20 LAK HS. 5. IN VIEW OF THE ABOVE, CIRCULAR NO.3/2018 DATED 10.07.2018 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.20 LAKHS. ACCORDIN GLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. ITO VS AJAY MAHESHWARI ITA NO. 3752/DEL/2016 (ASSESSMENT YEAR: 2009 - 10) PAGE | 3 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 0 9 / 0 8 / 2018 . - S D / - - S D / - ( S.K.YADAV ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 9 / 0 8 / 2018 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . 4 . CIT 5 . CIT (A) 6 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI