ACIT, Nainital V. M/s EC Greens Resorts Pvt. Ltd., Nainital

ITA 4962/DEL/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7273 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 19-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSAN GEORGE
• Assessee Lawyers: PAWAN KUMAR NATH
• Keywords: Tax effect

Judgement Text

[ 1 ] INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B: NEW DELHI BEFORE SHRI A.T.VARKEY, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4962 /DEL/201 2 (ASSESSMENT YEAR: 2009 - 10 ) ITA NO. 6141 /DEL/ 2014 (ASSESSMENT YEAR: 2011 - 12 ) ACIT, GOLGHAR, BARA BAZAR, NAINITAL VS. EC GREENS RESORTS PVT. LTD, HARI BHAWAN, MALLITAL, NAINITAL, PAN:AABCE6088N (APPELLANT) (RESPONDENT) ITA NO. 5578 /DEL/ 2013 (ASSESSMENT YEAR: 2008 - 09 ) ITA NO. 5579 /DEL/ 2013 (ASSESSMENT YEAR: 2010 - 11 ) DCIT NAINITAL VS. EC GREENS RESORTS PVT. LTD, HARI BHAWAN, AYARPATTA SLOPES, MALLITAL PAN:AABCE6088N (APPELLANT) (RESPONDENT) ASSESSEE BY: MS. SUSAN GEORGE, SR. DR RESPONDENT BY: SH. PAWAN KUMAR NATH, CA DATE OF HEARING 14 . 01.2016 DATE OF PRONOUNCEMENT 21 .01.2016 O R D E R PER PRASHANT MAHARISHI, A. M. 1 . TH ESE APPEAL S FILED BY THE DEPARTMENT ARE DIRECTED AGAINST THE ORDER DATED 02.07.2012, 25.08.2014 AND 23.07.2013 OF LD CIT(A) - II, DEHRADUN FOR THE ASSESSMENT YEAR 2008 - 09 TO 2011 - 12 . 2 . AT THE OUTSET OF THE HEARING ITSELF, THE LD. AR BROUGHT TO OUR 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 SHOW THAT THE TAX EFFECT IN THIS CASE IS BELOW RS.10 LAKHS. THEREFORE, HE PLEADED 2 | P A G E THAT THE APPEAL OF THE REVENUE BE DISMISSED AS PER THE INSTRUCTION OF THE CBDT AND ALSO SUBMITTED THAT THE CROSS OBJECTION PREFE RRED BY THE ASSESSEE IS NOT PRESSED. 3 . LD. DR WAS FAIR ENOUGH TO ADMIT THE AFORESAID FACTUAL POSITION. 4 . WE 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 BEFORE 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 WH ERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - 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 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE 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 V IEW 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 APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.10 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. SINCE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFF ECT, THEREFORE, THE CROSS OBJECTION OF THE ASSESSEE BECOMES INFRACTUOUS AND ACCORDINGLY DISMISSED. 3 | P A G E 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 .01.2016. - SD/ - - SD/ - ( A. T. VARKEY) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 21 /01/2016 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI