DCIT, New Delhi V. M/s. Usha Crafts Pvt. Ltd., New Delhi

ITA 459/DEL/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1822 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 2
• Next Hearing Date: 14-12-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 22-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR ANJULA JAIN
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 2 : NEW DELHI BEFORE SHRI VIJAY PAL ROA , JUDICIAL MEMBER ITA NO. 459 /DEL/ 2015 (ASSESSMENT YEAR: 2006 - 07 ) DCIT, CENTRAL CIRCLE - 20, NEW DELHI VS. USHA CRAFTS PVT. LTD., 159, SFS, MUNIRKA VIHAR, NEW DELHI PAN:AAACU6316N (APPELLANT) (RESPONDENT) APPELLANT BY : DR. ANJULA JAIN, SR. DR RESPONDENT BY : SMT. SHAILESH GUPTA, ADV DATE OF HEARING 14.12.2015 DATE OF PRONOUNCEMENT 21 . 12 .2015 O R D E R THIS IS AN APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 20 . 10 . 201 4 OF LD. CIT(A) - XX XII , NEW DELHI FOR THE ASSESSMENT YEAR 2006 - 07 . 2. AT THE OUTSET OF THE HEARING ITSELF, THE LD. AR BROUGHT TO MY 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 SH OW 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 INSTRUCTION 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. I HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. I FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFOR E 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 MON ETARY LIMITS GIVEN HEREUNDER : - PAGE NO. 2 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. 5. I FIND THAT THE LD. AR FOR THE ASSESSEE HAS FILED A COMPUTATION CHART SHOWING THE TAX EFFECT W HICH 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 DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SICNE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. 5 .1 IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD THAT THE AP PEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.10 LAKHSS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 6 . IN THE RESULT, APPEAL FILED BY THE DEPARTMENT IS DISMISSED WITHOUT GOING IN TO THE MERITS. ORDER PRONOUNCED IN THE OPEN COURT ON 21 . 12 .201 5 . - SD/ - ( VIJAY PAL RAO ) JUDICIAL MEMBER DATED : 21 / 12 / 2015 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI