ITO, New Delhi V. M/s. A.A.G. Traders (P) Ltd., New Delhi

ITA 4889/DEL/2010

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8137 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 21-04-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 09-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Keywords: Tax effect
• Section: 12A

Judgement Text

1 ITA NO. 4889/DEL/2010 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. KULDIP SINGH, JM ITA NO. 4889/DEL/2010 : ASSTT. YEAR : 2004-05 ITO WARD 1(1), ROOM NO. 398B, C.R. BLDG., I.P. ESTATE, NEW DELHI. VS AAG TRADERS (P) LTD. C/O FORD SERVICE CENTRE NH-8, NEAR SHIV MURTI RANGPURI VILLAGE, NEW DELHI. AABCA0280C (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SH. RAVI JAIN, CI T DR DATE OF HEARING : 21.04.2016 DATE OF PRONOUNCEMENT : 25.04.2016 ORDER PER N. K. SAINI, AM: THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE OR DER DATED 28/09/2010 OF THE CIT(A)-IV, DELHI. 2. AT THE TIME OF HEARING NOBODY WAS PRESENT ON BEH ALF OF THE ASSESSEE NEITHER ANY ADJOURNMENT WAS SOUGHT. WE, T HEREFORE, PROCEEDED EX-PARTE QUA THE ASSESSEE. 2 ITA NO. 4889/DEL/2010 2.1 DURING THE COURSE OF HEARING THE LD. CIT DR ALTHOUGH SUPPORTED THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT CONTROVERT THESE FACTS THAT THE TAX EFFECT INVOLVED IN THIS APPEAL I S LESS THAN RS. 10 LAKHS. THEREFORE, THE DEPARTMENT OUGHT NOT TO HAVE FILED T HIS APPEAL. IN VIEW OF THE LATEST CIRCULAR NO. 21 DATED 10/12/2015 ISSUED BY THE CBDT AND THE PROVISIONS CONTAINED IN SECTION 268A OF THE INCOME TAX ACT, 1961 (HEREINAFTER TO BE REFERRED AS THE ACT). 3. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT SE CTION 268A HAS BEEN INSERTED BY THE FINANCE ACT, 2008 WITH RET ROSPECTIVE EFFECT FROM 01/04/99. THE SAID SECTION 268 OF THE A CT PROVIDES THAT THE BOARD MAY ISSUE INSTRUCTION OR DIRECTIONS TO THE OTHER INCOME-TAX AUTHORITIES FIXING MONETARY LIMITS FOR N OT FILING THE APPEALS BEFORE THE APPELLATE TRIBUNAL OR THE COURTS , SAID INSTRUCTIONS/DIRECTIONS ARE BINDING ON THE INCOME T AX AUTHORITIES. 4. IT IS NOTICED THAT THE CBDT HAS ISSUED CIRCULAR NO.21 OF 2015 DATED 10.12.2015, VIDE WHICH IT HAS REVISED TH E MONETARY LIMIT TO RS.10,00,000/- FOR NOT FILING TH E APPEAL BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE SA ID CIRCULAR READS AS UNDER: 3 ITA NO. 4889/DEL/2010 .. ... 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S. NO APPEALS IN INCOME -TAX MATTER 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 MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH C ASES IS TO BE DECIDED ON MERITS OF THE CASE. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SH ALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OT HER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX MATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF STATUTE & RULES. FURTHER, FILING OF A PPEAL IN CASES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDER SECTIO N 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY THE LIMI TS SPECIFIED IN PARA 3 ABOVE AND DECISION TO FILE APP EAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR C ASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE 4 ITA NO. 4889/DEL/2010 GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5. FROM CLAUSE 10 OF THE ABOVE SAID CIRCULAR IT IS CLEAR THAT THESE INSTRUCTIONS ARE APPLICABLE TO THE PENDING AP PEALS ALSO AND AS PER CLAUSE 3, THERE IS CLEAR CUT INSTRUCTION TO THE DEPARTMENT TO WITHDRAW OR NOT TO PRESS THE APPEALS FILED BEFORE THE ITAT WHEREIN TAX EFFECT IS LESS THAN RS. 10,00,000/-. THESE INSTRUCTIONS ARE OPERATIVE RETROSPECTIVELY TO THE PENDING APPEALS. 6. KEEPING IN VIEW THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 AND ALSO THE PROVISIONS OF SECTION 268A OF INCOME TAX ACT, 1961, WE ARE OF THE VIEW THAT THE REVENUE SHOULD NOT HAVE FILED THE INSTANT APPEAL BEFORE THE TRIBUNAL. 7. IN VIEW OF THE ABOVE, WITHOUT GOING INTO MERITS OF THE CASE, WE DISMISS THE APPEAL FILED BY THE DEPARTMENT . 8. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. ORDER PRONOUNCED IN THE COURT ON 25/04/2016 SD/- SD/- (KULDIP SINGH) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMB ER DATED: 25/04/2016 *KAVITA ARORA 5 ITA NO. 4889/DEL/2010 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR 6 ITA NO. 4889/DEL/2010 DRAFT DICTATED ON 21.04.2016 /25.04.16 DRAFT PLACED BEFORE AUTHOR 22 .04.2016 /25.04.16 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 25.04.2016 KEPT FOR PRONOUNCEMENT ON 25.04.2016 FILE SENT TO THE BENCH CLERK 25.04.2016 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.