ACIT, New Delhi V. M/s Deepali Design & Exhibits, New Delhi

ITA 6202/DEL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1523 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 02-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NOS. 6201,6202/DEL/2016 ASSTT. YEARS: 2009-10, 2010-11 O R D E R PER BENCH THE APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), 27, NEW DELHI DATED 08.09.2016 IN RELATION TO THE PENALTY PROCEEDINGS U/S 271(1)(C) PERTAINING TO THE ASSESSMENT YEARS 2009-10 AND 2010-11. THE DISPUTED AMOUNT OF PENALTY LEVIED IS :- ASSESSMENT YEAR AMOUNT 2009-10 RS. 12,82,390/- 2010-11 RS. 11,52,980/- A CIT, CENTRAL CIRCLE 17, ROOM NO. 103, 1 ST FLOOR, HALL NO. 1, E-2, ARA CENTER, JHANDEWALAN EXTN. NEW DELHI -110055 VS. DEEPALI DESIGN & EXHIBITS 9, 1 ST FLOOR, BEHIND PUNJAB KESARI WAZIRPUR INDL. AREA NEW DELHI 110 035 PAN AAFFD1639M (APPELLANT) (RESPONDENT) DEPARTMENT BY: MS. ASHIMA NEB, SR. DR ASSESSEE BY : SHRI PRAVEEN AGARWAL, CA DATE OF HEARING 10/09 /201 8 DATE OF PRONOUNCEMENT 10/ 0 9 /2018 2 2. IT HAS BEEN ADMITTED BY BOTH THE PARTIES THE TAX EFFECT IS BELOW THE MONETARY LIMIT OF RS. 20 LAKHS. AT THE OUTSET OF THE HEARING ITSELF, THE LD. SR. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.03/2018 DATED 11TH JULY 2018 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.20 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. LD AR ALSO REITERATED SAME FACTS. 3. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 11TH JULY 2018 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL TO RS. 20 LAKHS. 4. WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEALS OF THE REVENUE IS BELOW RS.20 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DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.20 LAKHS. 5. IN THE RESULT, THE APPEALS OF THE REVENUE STAND DISMISSED AS INDICATED ABOVE. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT ON 10 TH SEPTEMBER, 2018. SD/- SD/- (O.P. KANT) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10/09/2018 VEENA 3 COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI