ACIT, Uttar Pradesh V. M/s. Willard India Ltd., Bulandshahr

ITA 5648/DEL/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6933 (ITAT-DELHI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 05-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: P S KASHYAP
• Keywords: Additional evidence; Tax effect
• Section: 154

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. 5648/DEL/2015 ASSESSMENT YEAR: 2010-11 INCOME TAX OFFICER, VS. M/S WILLARD INDIA LTD., WARD 3(3), VILL-BHADORIA, PO AURANGABAD, BULANDSHAHR BULANDSHAHR (PAN: AAACW3212D) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. RAVI JAIN, CIT(DR) RESPONDENT BY : SH. P.S. KASHYAP, ADV. 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 24.7.2015 OF LD. CIT(A)-MEERUT PERTAINING TO ASSESS MENT YEAR 2010-11 ON THE FOLLOWING GROUNDS:- 1. LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIS POSING OF THE APPEAL WITH THE DIRECTION TO AO TO VERIFY THE CLAIM OF THE ASSESSEE WHICH AMOUNTS TO SETTING ASIDE OF ASSESSMENT ORDER, AN AD JUDICATION, THE RIGHT OF WHICH HAS ALREADY BEEN TAKEN AWAY FROM CIT(A) S INCE 2001. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD . CIT(A) HAS ERRED IN ADMITTING THE ADDITIONAL EVIDENCE WITHOUT GIVING TH E OPPORTUNITY TO THE AO FOR EXAMINATION OF THE SAME AS THERE WAS NO CIRC UMSTANCES FOR ADMITTING THE ADDITIONAL EVIDENCE AS PER RULE 46A(2 ) AND 46A(3). 3. THE ORDER OF THE LD. CIT(A) PASSED ON THE APPLIC ATION OF ASSESSEE U/S. 154 MAY BE SET ASIDE. 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. ITA NO.5648/DEL/2015 2 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. 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 ITA NO.5648/DEL/2015 3 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. 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