ACIT, Muzaffarnagar V. M/s Rana Ceramics Products India (P) Ltd., Muzaffarnagar

ITA 5545/DEL/2010

• Counselvise Citation: 554520114 RSA 2010
• Duration Of Justice: 4 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 27-04-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 08-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SOHAY
• Keywords: Tax effect
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI I.C. SUDHIR AND SHRI J.S. REDDY ITA NO. 5545/DEL/2010 ASSESSMENT YEAR: 2006-07 ASSISTANT CIT, VS. RANA CERAMICS PRODUCTS INDIA CIRCLE-2, (P) LTD., MEERUT ROAD, MUZAFFARNAGAR. MUZAFFARNAGAR. (PAN: AACCR9284J) (APPELLANT) (RESPONDENT) CROSS OBJECTION NO. 21/DEL/2011 ASSESSMENT YEAR: 2006-07 RANA CERAMICS PRODUCTS INDIA VS. ASSISTANT CIT, (P) LTD., MEERUT ROAD, CIRCLE-2, MUZAFFARNAGAR. MUZAFFARNAGAR. (PAN: AACCR9284J) (APPELLANT) (RESPONDENT) DEPARTMENT BY: SHRI VIKRAM SOHAY, SR. DR ASSESSEE BY: SHRI ANKIT GUPTA, ADV. DATE OF HEARING : 27.04.2015 DATE OF PRONOUNCEMENT: 01:05.2015 ORDER PER I.C. SUDHIR: JUDICIAL MEMBER AT THE OUTSET OF HEARING, THE LEARNED AR POINTED OU T THAT THE TAX EFFECT OF THE GROUNDS RAISED IN THE APPEAL PREFERRE D BY THE REVENUE IS BELOW RS.4 LACS, HENCE, AS PER THE LATEST CBDT INSTRUCTIO N NO. 5/2014 DATED 10.07.2014, THE PRESENT APPEAL IS NOT MAINTAINABLE. 2 2. THE SENIOR DR DID NOT OBJECT THE ABOVE SUBMISSIO NS OF THE LEARNED AR ABOUT THE TAX EFFECT HAVING BELOW RS.4 LACS IN THE GROUNDS OF THE APPEAL. HE HAS, HOWEVER, PLACED RELIANCE ON THE ASSESSMENT ORDER. 3. IN THE PRESENT APPEAL, THE REVENUE HAS QUESTIONE D DELETION OF ADDITION OF RS.10,11,396 IN TOTAL BY THE LEARNED CIT(APPEALS ). THE TAX EFFECT THEREOF IS BELOW RS.4 LACS. AS PER THE LATEST CBDT INSTRUCT ION NO. 5/2014 DATED 10.7.2014, THE REVENUE IS NOT SUPPOSED TO PREFER AP PEAL HAVING TAX EFFECT BELOW RS. 4 LACS AGAINST THE FIRST APPELLATE ORDER BEFORE THE ITAT. THIS INSTRUCTION REGARDING THE PECUNIARY LIMIT FOR PREFE RRING THE APPEAL BEFORE THE ITAT BY THE REVENUE HAS NOW STATUTORY FORCE UNDER S EC. 268A OF THE INCOME-TAX ACT, 1961. THUS, PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENUE IN VIOLATION OF THE SAID INSTRUCTION AS THE SAID INSTRUCTION IS ALSO APPLICABLE IN THE PENDING APPEALS AS PER THE DECISI ONS OF HONBLE JURISDICTIONAL DELHI HIGH COURT IN THE CASE OF CIT VS. M/S. P.S. JAIN & CO. IN ITA NO. 179/1991 DATED 02.08.2010 AND IN THE CASE O F CIT VS. DELHI RACE CLUB LTD. ORDER DATED 03.03.2011.THE PRESENT APPE AL IS THUS NOT MAINTAINABLE AND IT IS DISMISSED AS SUCH. C.O. NO. 21/DEL/2011 : 3. THE LEARNED AR POINTED OUT FURTHER THAT THE ASSE SSEE DOES NOT WISH TO PURSUE CROSS OBJECTION DUE TO SMALLNESS OF AMOUNT A DDED UNDER SEC. 40A(3) 3 OF THE INCOME-TAX ACT, 1961, KEEPING IT IN VIEW THA T THE APPEAL PREFERRED BY THE REVENUE IS NOT MAINTAINABLE DUE TO LOW TAX EFFE CT. 4. IN RESULT, BOTH THE APPEAL AND CROSS OBJECTION A RE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 01.05.2015 SD/- SD/- ( J.S.REDDY ) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01 /05/2015 MOHAN LAL COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR DATE DRAFT DICTATED ON COMPUTER 29 .04.2015 DRAFT PLACED BEFORE AUTHOR 29.04.2015 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 01.05.2015 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 05.05.2015 KEPT FOR PRONOUNCEMENT ON 01.05.2015 FILE SENT TO THE BENCH CLERK 05.05.2015 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.