ACIT, New Delhi V. M/s. Jaguar Leasing Pvt. Ltd., New Delhi

ITA 449/DEL/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0210 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 20-07-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 24-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN COMMISSIONER
• Keywords: Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER ITA NOS. 448 & 449/DEL/2014 ASSTT. YRS: 2006-07 & 2007-08 ACIT, CENTRAL CIRCLE-17, VS. M/S JAGUAR LEASING PV T. LTD. NEW DELHI. B-10, SHIVALIK, MALVIYA NAGAR, DELHI. PAN: AABCJ 3625 J ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI S.K. JAIN, ADDL. COMMISSIONER RESPONDENT BY : SHRI KAPIL GOEL ADV. DATE OF HEARING : 21/07/2015. DATE OF ORDER : 22/07/2015. O R D E R PER S.V. MEHROTRA, A.M.. : THESE APPEALS, FILED BY THE REVENUE, ARE DIRECTED AGAINST CIT(A)S SEPARATE ORDERS DATED 20-11-2013 PASSED IN APPEAL NOS. 212/1 0-11 (AY 2006-07) & 21-13- 2013 IN APPEAL NO. 211/10-11 (AY 2007-08). BOTH THE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER, FOR THE SAKE OF CONVENIENCE. 2. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMI TTED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEALS IS BELOW RS. 4 LACS I.E. RS. 3,06,853/- FOR AY 2006- 07 AND RS. 1,31,487/- FOR AY 2007-08 AND, THEREFORE , THE APPEALS FILED BY THE REVENUE ARE NOT MAINTAINABLE IN VIEW OF RECENT CBD T INSTRUCTION, WHICH IS BINDING ON THE DEPARTMENT. 2 3. THE LEARNED DR COULD NOT CONTROVERTED THE AFORE MENTIONED FACTS. HE, HOWEVER, SUBMITTED THAT THE DEPARTMENT HAS NOT GIVE N UP ITS STAND. 4. WE HAVE HEARD RIVAL SUBMISSIONS OF THE PARTIES A ND PERUSED THE ENTIRE MATERIAL ON RECORD. AS PER RECENT CBDT INSTRUCTION NO. 5/2014 [F NO. 279/MISC. 142/2007-ITJ(PT)], DATED 10-7-2014, THE MONETARY LI MIT FOR FILING APPEAL BY THE DEPARTMENT BEFORE THE ITAT HAS BEEN REVISED TO RS. 4 LACS. THUS, THE DEPARTMENTAL APPEAL, INVOLVING TAX EFFECT BELOW RS. 4 LACS, IS NOT MAINTAINABLE BEFORE THE ITAT. PARA 5 OF THE CBDT INSTRUCTION STIPULATES AS UNDER: 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX E FFECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CA SE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ON E ASSESSMENT YEAR, APPEAL, CAN BE FILED IN RESPECT OF SUCH ASSES SMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DIS PUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. IN OTHER WORDS, HENCEFORTH, APPEALS CAN BE FILED ONLY WITH REFERENCE TO THE TAX EFFECT IN THE RELEVANT ASSESSM ENT YEAR. HOWEVER, IN CASE OF A COMPOSITE ORDER OF ANY HIGH C OURT OR APPELLATE AUTHORITY, WHICH INVOLVES MORE THAN ONE A SSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEAL SHALL BE FILED IN RESPECT OF ALL SUCH ASSESS MENT YEARS EVEN IF THE 'TAX EFFECT' IS LESS THAN THE PRESCRIBE D MONETARY LIMITS IN ANY OF THE YEAR(S), IF IT IS DECIDED TO FILE APP EAL IN RESPECT OF THE YEAR(S) IN WHICH 'TAX EFFECT' EXCEEDS THE MONET ARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER / JUDGE MENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHAL L BE DEALT WITH SEPARATELY. 5. THE HONBLE JURISDICTIONAL DELHI HIGH COURT IN T HE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008, ORDER DATED 03. 03.2011, BY FOLLOWING THE EARLIER ORDER DATED 02.08.2010 IN ITA NO. 179/1991 IN THE CASE OF CIT DELHI-III VS. 3 M/S P.S. JAIN & CO., HAS HELD THAT SUCH INSTRUCTIO N/ CIRCULAR WOULD ALSO BE APPLICABLE TO PENDING CASES. 6. ADMITTEDLY THE TAX EFFECT INVOLVED IN EACH OF TH E PRESENT APPEALS IS BELOW RS. 4 LAKHS. THEREFORE, IN VIEW OF THE REVISED INS TRUCTION OF THE CBDT, REFERRED TO ABOVE, AND THE HONBLE JURISDICTIONAL HIGH COURT S DECISION IN THE CASE OF DELHI RACE CLUB LTD., SUPRA, THE DEPARTMENTAL APPEAL ARE NOT MAINTAINABLE. 7. IN THE RESULT, DEPARTMENTAL APPEALS ARE DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 22/07/2015. SD/- (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 22/07/2015. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.