ACIT, New Delhi V. Sh. Rajesh Arora, New Delhi

ITA 4214/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77748 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 18-06-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 10-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Assessee Lawyers: SANTI THOMAS
• Keywords: Tax effect
• Section: 260A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F: NEW DELHI BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTAN T MEMBER ITA NO. 4214/DEL/2013 ASSESSMENT YEAR 2009-10 ACIT, VS. RAJESH ARORA, CIRCLE-32 (1), E-114, MALCHA MARG, NEW DELHI. NEW DELHI. (PAN AACPA4090Q) (APPELLANT) (RESPONDENT ) APPELLANT BY : S HRI SATPAL SINGH, SR. DR RESPONDENT BY : MS. SANTI THOMAS ORDER PER GEORGE GEORGE K, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE DEPARTMENT AGAINST T HE ORDER DATED 26.4.2013 OF THE COMMISSIONER OF INCOME-TAX (APPEAL S)-I, NEW DELHI, PERTAINING TO THE ASSESSMENT YEAR 2009-10. THE GROUNDS RAISED READ AS FOLLOWS :- 1. WHETHER THE CIT(A) WAS JUSTIFIED IN DELETING TH E ADDITION OF RS. 4,20,000/- MADE ON ACCOUNT OF NOTIONAL RENT IN RESP ECT OF FARM HOUSE SITUATED AT ARTHALA, DISTT. GHAZIABAD, WHEREAS ARTH ALA IS APPROXIMATELY 5 KM FROM DELHI BORDER & IS PART OF NCR. IT MAY BE NO TED THAT VILLAGE ARTHALA IS ACTUALLY THE TOWN OF NARENDER NAGAR FALL ING BETWEEN DELHI AND GAZIABAD. 2. WHETHER THE CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS. 40,000/- MADE U/S 24 (B) BEING INTEREST PAID ON LO AN WHICH WAS NOT FOUND TO BE EXPLAINABLE BY ASSESEE DURING AY 2007-0 8. ITA NO. 4214/DEL/13 2 2. AT THE OUTSET OF HEARING, IT WAS POINTED OUT BY THE LEARNED AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE DEPARTMENT IS NON-MAINTAINABLE ON ACCOUNT OF TAX EFFECT INVOLVED. IT WAS SUBMITTED THAT THE TAX EFFECT IS BELOW RS. 3,00,000/- ON ACCOUNT OF THE ISSUES THAT ARE AGITAT ED IN THIS APPEAL AND IN ACCORDANCE WITH THE TERMS OF THE INSTRUCTION NO.3/2 011 OF 9 TH FEBRUARY, 2011 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) WHEREIN THE MONETARY LIMIT FOR FILING THE APPEAL IN THE INCOME-TAX MATTERS BEF ORE THE TRIBUNAL HAS BEEN FIXED AT RS.3,00,000/-, THE DEPARTMENTAL APPEAL DESERVES TO BE DISMISSED. IN SUPPORT OF HIS CLAIM RELIANCE WAS PLACED ON THE FOLLOWING O RDERS OF THE CO-ORDINATE BENCH AND ON THE DECISION OF HONBLE DELHI HIGH COURT TO AGITATE THAT THE DEPARTMENTAL APPEAL DESERVES TO BE DISMISSED : (1) ORDER OF ITAT, MUMBAI BENCH `A MUMBAI IN THE C ASE OF ITO VS. SHRI ASHOK G. DHANDHARIAI IN ITA NO.2460/MUM./2010, DATE D 28 TH FEBRUARY, 2011, FOR THE ASSESSMENT YEAR 2005-06; & (2) ORDER OF ITAT, DELHI BENCH `F NEW DELHI IN THE CASE OF ITO VS. M/S. PRS SECURITIES PVT. LTD. IN ITA NO.4447/2010, DATED 25.03.2011 FOR THE ASSESSMENT YEAR 2001-02. (3) JUDGMENT OF HIGH COURT OF DELHI IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO.128/2008, DATED 3 RD MARCH, 2011.. 3. THE LEARNED DR DID NOT DISPUTE THE ABOVE CONTENT ION OF THE LD. AR REGARDING TAX EFFECT INVOLVED IN THE APPEAL IS BELO W RS. 3,00,000/- NOR WAS HE IN A POSITION TO POINT OUT ANY EXEMPTED SITUATION FOR FILING AN APPEAL DESPITE THE TAX EFFECT BEING BELOW THE MONETARY LIMIT. ITA NO. 4214/DEL/13 3 4. ON CAREFUL CONSIDERATION OF THE ABOVE SUBMISSI ONS, WE ARE OF THE VIEW THAT THE DEPARTMENTAL APPEAL DESERVES TO BE DISMISSED. IT IS SEEN THAT THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. DE LHI RACE CLUB LTD. (SUPRA) HAS HELD AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS R S.4,65,860/- . AS PER RECENT GUIDELINES OF THE CBDT, APPEAL IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN 10 LACS, ARE NOT BE ENTERTAINED. THIS COURT IN THE CASE OF COMMISSIONER OF INCOME-TA X-III V. M/S. P.S. JAIN AND CO. BEING NO.179/1991 DECIDED ON 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WO ULD ALSO APPLY TO PENDING CASES. 4.1 IN THE PRESENT CASE ADMITTEDLY THE TAX PAYABLE IN RESPECT OF GROUNDS OF APPEAL BY THE DEPARTMENT IS LESS THAN RS.3 LAKHS AN D AS PER REVISED INSTRUCTION OF THE CBDT NO.3 DATED 9.2.2011 WHEREIN THE CBDT HA S REVISED THE FILING LIMITS FOR APPEAL FILED BEFORE THE TRIBUNAL, HIGH COURT AN D SUPREME COURT AS UNDER:- BEFORE THE INCOME TAX APPELLATE TRIBUNAL : RS.3 LA KHS, APPEALS U/S 260A OF THE IT ACT BEFORE THE HONBLE HIGH COURT : RS.10 LAKHS AND BEFORE THE HONBLE SUPREME COURT : RS.25 LAKHS 4.2 SINCE IN THE PRESENT CASE THE ABOVE REVISED INS TRUCTION IS FULLY APPLICABLE IN VIEW OF THE JUDGMENT OF THE HONBLE DELHI HIGH C OURT (SUPRA), HENCE IN OUR OPINION THE REVENUES APPEAL IS NOT MAINTAINABLE IN VIEW OF THE SAID CIRCULAR OF THE CBDT READ WITH SECTION 268A OF THE I.T. ACT 196 1. REFERENCE MAY ALSO BE MADE TO THE DECISION OF HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF CIT VS. ASHOK KUMAR MANIBHAI PATEL & CO. (2009) 317 ITR 386 (MP) ON THE ISSUE. ITA NO. 4214/DEL/13 4 4.3 IN VIEW OF THE ABOVE, WE HOLD THAT THE APPEAL F ILED BY THE DEPARTMENT AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), IS CO NTRARY TO THE POLICY DECISION OF THE DEPARTMENT AND AS SUCH THE APPEAL FILED BY T HE DEPARTMENT IS DISMISSED IN LIMINE . 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. 6. THIS DECISION WAS PRONOUNCED IN THE OPEN CO URT ON 20 TH JUNE, 2014. SD/- SD/- (B.C. MEENA) ( GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 18 TH JUNE, 2014 *VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSTT. REGISTRAR, ITAT