ITO, New Delhi V. Mr. Naveen Chugh, New Delhi

ITA 471/DEL/2012

• Counselvise Citation: 47120114 RSA 2012
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 03-04-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 31-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: A PPLICATION AR REJECTED
• Keywords: Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E DELHI BEFORE SHRI RAJPAL YADAV AND SHRI B.C. MEENA ITA NO. 471(DEL)/2012 ASSESSMENT YEAR: 2007-08 INCOME-TAX OFFICER, VS. NAVEEN CHUGH, WARD 44(2), 15-SATHI APARTMENT, SECTOR-9, NEW DELHI. ROHINI, NEW DELHI. (PAN-ACJPC5095L) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RS NEGI, SR. DR RESPONDENT BY : A PPLICATION BY AR REJECTED ORDER PER RAJPAL YADAV: JUDICIAL MEMBER THE PRESENT APPEAL IS FILED BY THE REVENUE FOR THE ASSESSMENT YEAR 2007-08. IT ARISES OUT OF ORDER OF THE LEARNED CIT( APPEALS) DATED 30.11.2011. 2. AT THE TIME OF HEARING, WE HAVE CONFRONTED THE L EARNED DR THAT THE TAX EFFECT IN THE APPEAL IS LESS THAN RS. 3.00 LAKH. THEREFORE, AS PER THE INSTRUCTION NO. 3/2011 DATED 09.02.2011 THE REVEN UE IS NOT PERMITTED TO FILE APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFEC T IS LESS THAN RS. 3.00 LAKH. WE ALSO APPRECIATED HIM WITH THE DECISION OF HON'B LE DELHI HIGH COURT DATED 25.03.2011 IN ITA NOS. 3 TO 5/2010. THE LE ARNED DR WAS UNABLE TO 2 CONTROVERT OUR OBSERVATION BECAUSE THIS APPEAL IS F ILED AFTER THE ISSUANCE OF INSTRUCTION NO.3 OF 2011. 3. WE HAVE HEARD THE LEARNED DR AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. INSTRUCTION NO. 3/2011 DATED 09.02.2011 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE D EPARTMENT BEFORE INCOME- TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE T RIBUNAL IS RS. 3.00 LAKH; BEFORE HONBLE HIGH COURT RS. 10.00 LAKH AND BEFOR E HONBLE SUPREME COURT RS. 25.00 LAKH. HONBLE HIGH COURT IN TH EIR ORDER DATED 25.03.2011 REFERRED TO ABOVE HAS HELD AS UNDER:- IT IS STATED THAT THE TAX IMPACT IN THE PRESENT CASES IS LESS THAN RS. 10.00 LAKHS. THE DEPARTMENT HAS RECENT LY ISSUED AN INSTRUCTION BEARING NO. 3/2011 DATED 09.02.2011, WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING N O. 5/2008 DATED 15.05.2008 EXCEPT THAT IN SO FAR AS THE HIGH CO URT IS CONCERNED, THE MONETARY LIMIT IN RESPECT OF APPEA LS WHERE THE QUESTIONS OF LAW RAISED NEED NOT TO BE ANSWERE D, HAS BEEN RAISED FROM RS. 4.00 LAKHS TO RS. 10.00 LAKHS. T HE DIVISION BENCH OF THIS COURT IN ITA NO. 89/1999 DECIDED O N 28.01.2011 HAS ALREADY HELD THAT THE INSTRUCTIO N BEARING NO. 5/2008 DATED 15.05.2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD TH US NATURALLY EQUALLY APPLY TO THE INSTANT INSTRUCTION BEARING NO.3/2011 DATED 09.02.2011, AS WELL. THE TAX EFFECT BEING LESS THAN RS. 10.00 LAKHS, THE QUESTION OF LAW DOES NOT REQUIRE TO BE ANSWERED. THE APPEALS ARE DISPOSED OF ACCORDING LY. 3 4. HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008 DATED 03.03.2011 HAS MAD E THE FOLLOWING OBSERVATIONS: THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS. 4,65,860/-. AS PER THE RECENT GUIDELINES OF THE CBDT, APPEA L IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS. 10.0 0 LAKHS, ARE NOT TO BE ENTERTAINED. THIS COURT IN THE CASE OF CIT, DELHI-III VS. M/S P .S. JAIN & CO., BEING ITA NO. 179/1991 DECIDED ON 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES. 5. IN VIEW OF THE DECISION OF HONBLE DELHI HIGH COURT, WHICH IS THE JURISDICTIONAL HIGH COURT IN THIS CASE, IT IS HEL D THAT INSTRUCTION NO. 3/2011 DATED 09.02.2011 WILL APPLY TO ALL PENDING APPE ALS. RESPECTFULLY FOLLOWING THE PRECEDENT, IT IS HELD THAT THE PR ESENT APPEAL IS NOT MAINTAINABLE BECAUSE THE TAX EFFECT IS LESS THA N RS. 3.00 LAKHS. 6. IN THE RESULT, THE APPEAL FILED BY THE DEPARTM ENT IS DISMISSED IN LIMINE WITHOUT GOING INTO THE MERITS. 4 7. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 0 3.04.2012 SOON AFTER THE COMPLETION OF THE HEARING. SD/- SD/- ( B.C. MEENA ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 03.04.2012. MOHAN LAL COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT: NEW DELHI. ASSISTANT REGISTRAR