ITO, Meerut V. M/s. Udal Singh & Sons Jewellers, Meerut

ITA 5080/DEL/2010

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6890 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 03-02-2016
• Assessment Year: 1996-1997
• Appeal Filed On: 18-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V R SONBHADRA
• Assessee Lawyers: V RAJU
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 5080/DEL/2010 ASSESSMENT YEAR: 1996-97 INCOME TAX OFFICER, VS. M/S UDAL SINGH & SONS JEWE LLERS, WARD 2(4), 50, KACHCHI SARAI, MEERUT MEERUT (PAN: AAAFU5732P) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. V.R. SONBHADRA, SR. DR RESPONDENT BY : SH. V. RAJU, CA DATE OF HEARING : 03-02-2016 DATE OF ORDER : 05-02-2016 ORDER PER H.S. SIDHU, J.M. THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 31.8.2010 OF LD. CIT(A)-MEERUT PERTAINING TO ASSESS MENT YEAR 1996-97 ON THE FOLLOWING GROUNDS:- 1. WHETHER LD. CIT(A) HAS ERRED IN LAW AND ON FACT S IN ADJUDICATING THE ISSUES ON AN ORDER ISSUED U/S. 254 OF THE I.T. ACT, 1961 ISSUED IN PURSUANCE TO THE DIRECTIONS OF THE HONBLE ITAT EXC EEDING HIS POWERS AS UNDER THE PROVISIONS OF SECTION 246A OF THE I.T. AC T, 1961. REVISION UNDER SECTION 254 IS NOT APPELLATE ORDER. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND THAT OF THE AO RESTORED . 2. AT THE TIME OF HEARING LD. COUNSEL OF THE ASSESS EE HAS STATED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW THE PRESCRI BED LIMIT OF RS. 10,00,000/-, HENCE THE SAME IS NOT MAINTAINABLE AND MAY BE DISMI SSED ACCORDINGLY. 2.1 LD. DR DID NOT CONTOVERT THE SUBMISSIONS MADE B Y THE LD. COUNSEL OF THE ASSESSEE, BUT HE RELIED UPON THE ORDER OF THE LD. C IT(A), MEERUT. ITA NO.5080/DEL/2010 2 3. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORDS, WE FIND THAT THE TAX EFFECT IN THE REVENUES APPEAL IS LESS THAN RS. 10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/200 7-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE, THE RELEVAN T PARA NOS. 3 & 10 OF THE AFORESAID CBDTS CIRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S 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 MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 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 WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L WAS FILED. 4. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORI TIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE P RESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. ITA NO.5080/DEL/2010 3 5. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HA VE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALS O OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE STAN DS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/02/2016. SD/- SD/- (L.P. SAHU) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 05/02/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR