ITO, Meerut V. Shri Ratan Lal Chawla, Meerut

ITA 5976/DEL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52460 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 10-08-2011
• Assessment Year: 1998-1999
• Appeal Filed On: 29-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Keywords: Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 5976/DEL/2010 ASSESSMENT YEAR: 1998-99 ITO, VS. RATAN LAL CHAWLA, WARD 2(2), 15-B, SHAMBHU NAGAR, MEERUT. MEERUT. AAJPC5318G (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. PRATIMA KAUSHIK, SR. DR RESPONDENT BY : SH. K. SAMPATH, ADV. ORDER PER C.L. SETHI, J.M. THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER DATED 6.10.2010 OF LD. CIT(A), PE RTAINING TO THE A.Y. 1998-99. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS DIRECTE D AGAINST THE LD. CIT(APPEALS) ORDER IN DELETING THE ADDITION OF RS. 7,14,812/- MADE BY THE AO ON ACCOUNT OF SALE PROCEE DS OF JEWELLERY. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. ITA NO. 5976/D/2010 2 4. IN THIS APPEAL, THE REVENUE HAS DISPUTED THE DEL ETION OF ADDITION OF RS. 7,14,812/-. THE TAX EFFECT ON THE AFORESAID SUM OF RS. 7,14,812/- WOULD BE LESS THAN RS. 3 LAKH. T HE DEPARTMENT HAS RECENTLY ISSUED AN INSTRUCTION BEARI NG NO. 3/2011 DATED 9.2.2011 PRESCRIBING MONETARY LIMIT, W HICH HAS BEEN RAISED FROM RS. 2 LAKH TO RS. 3 LAKH, FOR THE PURPOSE OF FILING AN APPEAL BEFORE THE APPELLATE TRIBUNAL. AS PER THE AFORESAID INSTRUCTION, THE APPEAL HAVING TAX EFFECT BELOW RS. 3 LAKH SHOULD NOT BE FILED BY THE DEPARTMENT BEFORE T HE TRIBUNAL. THE HONBLE HIGH COURT OF DELHI VIDE DECISION DATED 19.4.2011 IN BUNCH OF APPEALS HAS LAID DOWN THAT THE INSTRUCT ION BEARING NO. 3/2011 DATED 9.2.2011 WOULD APPLY EVEN TO THE O LD PENDING REFERENCES AND APPEALS. THE SAID DECISION RUNS AS UNDER: - IT IS STATED THAT THE TAX IMPACT IN THE PRESENT CASE IS LESS THAN RS. 10.00 LAKH. THE DEPARTMENT HAS RECENTLY ISSUED AN INSTRUCTION BEARING NO. 3/2011 DATED 9.2.2011, WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING NO. 5/2008 DATED 15.5.2008 EXCEPT THAT IN SO FAR AS THE HIGH COURT IS CONCERNED, THE MONETARY LIMIT IN RESPECT OF APPEALS, WHERE THE QUESTIONS OF LAW RAISED NEED NOT TO BE ITA NO. 5976/D/2010 3 ANSWERED, HAS BEEN RAISED FROM RS. 4.00 LAKH TO RS. 10.00 LAKH. THE DIVISION BENCH OF THIS COURT IN ITA NO. 89/1999 DECIDED ON 28.1.2011 HAS ALREADY HELD THAT THE INSTRUCTION BEARING NO. 5/2008 DATED 15.5.2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD, THUS, NATURALLY EQUALLY APPLY TO THE INSTANT INSTRUCTION BEARING NO. 3/2011 DATED 9.2.2011, AS WELL . THE TAX EFFECT BEING LESS THAN RS. 10.00 LAKH IN THE PRESENT APPEALS, THE QUESTION OF LAW DOES NOT REQUIRE TO BE ANSWERED. THE APPEALS ARE ACCORDINGLY DISPOSED OF. 5. IN THE COURSE OF HEARING OF THIS APPEAL, THE LD. COUNSEL FOR THE ASSESSEE FURNISHED A COPY OF ORDER DATED 16 .3.2011 PASSED BY ITAT, DELHI BENCH, E, NEW DELHI IN THE CASE OF ITO VS. MUKESH KUMAR CHAWLA & SONS (ITA NOS. 5972 & 5973/DEL/2010) PERTAINING TO THE A.Y. 1998-99, WHER E ALSO THE APPEAL FILED BY THE DEPARTMENT WAS HELD NOT TO BE MAINTAINABLE IN THE LIGHT OF THE FACT THAT THE TAX EFFECT IN THAT CASE WAS ALSO LESS THAN RS. 3 LAKH AND INSTRUCTION NO. 3/2011 DATED 9.2.2011 ISSUED BY THE DEPARTMENT WAS APPLIED . ITA NO. 5976/D/2010 4 6. IN THE LIGHT OF THE DISCUSSIONS MADE ABOVE, WE H OLD THAT THE PRESENT APPEAL IS NOT MAINTAINABLE BEING IN CON TRAVENTION OF THE BOARDS CIRCULAR/INSTRUCTION NO. 3/2011 DATE D 9.2.2011. HENCE, THIS APPEAL FILED BY THE REVENUE STANDS DISM ISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 8. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 10.08.2011 UPON CONCLUSION OF HEARING. SD/- SD/- (SHAMIM YAHYA) (C. L. SETHI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: *KAVITA COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR