ACIT, Faridabad V. Sh. Ajay Joneja, Faridabad

ITA 4034/DEL/2010

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7182 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 31-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN
• Assessee Lawyers: ABHISHEK ANAND
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SMT DIVA SINGH , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI , ACCOUNTANT MEMBER I TA NO . 4034/DEL/2010 (ASSESSMENT YEAR: 2002 - 03 ) ACIT, CIRCLE - II, FARIDABAD VS. AJAY JONEJA, PLOT NO. 244, SECTOR - 24, FARIDABAD (APPELLANT) (RESPONDENT) CROSS OBJECTION NO . 317/DEL/2010 (ASSESSMENT YEAR: 2002 - 03 ) AJAY JONEJA, PLOT NO. 244, SECTOR - 24, FARIDABAD VS. ACIT, CIRCLE - II, FARIDABAD (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. ABHISHEK ANAND, ADV REVENUE BY: SH. SK JAIN, DR DATE OF HEARING 06/09/ 2016 DATE OF PRONOUNCEMENT 07 / 0 9 /2016 O R D E R PER PRASHANT MAHARISHI , A . M . 1. THIS IS AN APPEAL FILED BY THE DEPARTMENT AND THE CROSS OBJECTION FILED BY THE ASSESSEE AGAINST THE ORDER DATED 30.04. 2010 OF LD. CIT(A) - FARIDABAD FOR THE ASSESSMENT YEAR 2002 - 03 . 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. HE 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 INSTRUCTI ON OF THE CBDT AND ALSO SUBMITTED THAT THE CROSS OBJECTION PREFERRED BY THE ASSESSEE IS NOT PRESSED. 3. LD. DR WAS FAIR ENOUGH TO ADMIT THE AFORESAID FACTUAL POSITION. 4. THE LD AR ALSO SUBMITTED THAT TAX EFFECT OF THE APPEAL OF THE REVENUE IS BELOW RS. 10 LAKHS AND THEREFORE IS NOT MAINTAINABLE. HE FURTHER SUBMITTED THAT THE CROSS OBJECTION FILED BY THE ASSESSEE IN THE ABOVE APPEAL IS ALSO NOT PRESSED. PAGE 2 OF 3 5. 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 PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORT H, 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 APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 6. WE FIND THAT THE TAX EFFECT ON THE DISPUTED AMOUNT 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 BINDING ON THOSE AUTHORITIES; THEREFORE, THE DEP ARTMENT 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. 7. IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 WILL APPLY TO ALL PEN DING 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. AS THE APPEAL OF THE REVENUE IS DISMISSED THE CROSS OBJECTION FILED BY THE ASSESSEE IS ALSO DISMISSED IN VIEW OF THE SAME BEING NOT PRESSED. 8. IN THE RESULT, APPEAL AND CROSS OBJECTION FILED BY THE PARTIES ARE DISMISSED WITHOUT GOING INTO THE MERITS. ORDER PRONOUNCED IN THE OPEN COURT ON 0 7 / 0 9 /2016 . - S D / - - S D / - ( DIVA SINGH ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 7 / 0 9 / 2016 A K KEOT PAGE 3 OF 3 COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI