ITO, New Delhi V. Sh. Sumer Singh, Delhi

ITA 3913/DEL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7073 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 01-02-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 19-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BERNWAL
• Assessee Lawyers: D K JAIN CA SHRI SANJEEV JAIN
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , AND SHRI L.P. SAHU, ACCOUNTANT MEMBER, ITA NO. 3913 /DEL /20 1 3 ASSESSMENT YEAR : 20 10 - 11 THE I.T . O VS. SHRI SUMER SINGH WARD 38(3) R /O A - 175, 2 ND FLOOR NEW DELHI SECTOR 19, DWARKA NEW DELHI PAN : ABJPS 6586 R [APPELLANT] [RESPONDENT] DATE OF HEARING : 01 . 0 2 . 201 6 DATE OF PRONOUNCEMENT : 03 . 0 2 .201 6 APPELLANT BY : MS. ANIMA BERNWAL , SR. DR RESPONDENT BY : SHRI D.K. JAIN, CA SHRI SANJEEV JAIN, CA ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - XXVIII , NEW DELHI , DATED 26 / 0 4 /2 01 3 FOR A.Y 20 10 - 11 . 2 ITA NO. 3913 /DEL/20 1 3 2 2. THIS APPEAL HAS BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 D ATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LA KH S FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME - TAX ACT. 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATED 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL AP PEAL SHALL BE FILED BEFORE THE I TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT - DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FUR THER REFERRED TO PARA 7 OF THE C IRCULAR TO SUBMIT THAT DISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LIMIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 3 ITA NO. 3913 /DEL/20 1 3 3 5. THE LEARNED COUNSEL F OR THE ASSESSEE, ON T HE OTHER HAND, STATED THAT THE C IRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPEAL OF THE REVENUE . 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN TH IS APPEAL BY THE REVENUE IS BELOW RS. 10.00 LA KHS AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEAL PARTICULARLY BECAUSE THE PENDING APPEAL I S COVERED BY C IRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOVE RS.10 LA KHS OR IN ANY OTHER MANNER, THE C IRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE C IRCULAR, HE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORDER WHICH THE TRIBUNAL WILL C ONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN TH I S APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE, INVOLVED IN TH IS APPEAL, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THO SE YEARS IS MORE THAN RS.10 LAKHS . 4 ITA NO. 3913 /DEL/20 1 3 4 7. KEEPING IN VIEW THE ABOVE CIRCULAR AND THE PROVISIONS OF SECTION 268A OF THE INCOME - TAX ACT, 1961 AND WITHOUT GOING INTO MERITS OF T HE CASE, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THE APPEAL IS LESS THAN RS.10 LA KHS . 8 . IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 3 . 0 2 .201 6 . SD/ - SD/ - ( L.P. SAHU ) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 3 R D FEBRUARY , 2016 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI