ACIT, New Delhi V. Smt. Madhu Saraf, Delhi

ITA 6278/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98318 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 17-12-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 26-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SULEKHA VERMA
• Keywords: Competent authority; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E : NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER, AN D SHRI L.P. SAHU, ACCOUNTANT MEMBER , ITA NO. 6278/DEL /2013 ASSESSMENT YEAR: 2004-05 THE A.C.I.T. VS. SMT. MADHU SARAF CENTRAL CIRCLE - 2 1290, KATRA DHULIA NEW DELHI CHANDNI CHOWK, NEW DELHI PAN : APPPS 8499 K CO NO. 137/DEL/2014 [A/O ITA NO. 6278/DEL /2013] ASSESSMENT YEAR: 2004-05 SMT. MADHU SARAF VS. THE A.C.I.T. 1290, KATRA DHULIA CENTRAL CIRCLE - 2 CHANDNI CHOWK, NEW DELHI NEW DELHI PAN : APPPS 8499 K [APPELLANT] [RESPONDENT] DATE OF HEARING : 17.12.2015 DATE OF PRONOUNCEMENT: 31 .12.2015 APPELLANT BY : SMT. SULEKHA VERM A, CIT-DR RESPONDENT BY : SHRI ASHOK JAIN, CA . SHRI SHAILESH GUPTA, ADV ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL BY THE REVENUE AND CROSS OBJECTION BY T HE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE CIT( A)-III, NEW DELHI, DATED 10/09/2013 FOR A.Y 2004-05. 2 ITA NO. 6278/ DEL/2013 CO NO. 137/ DEL/2015 2 2. THIS APPEAL AND CROSS OBJECTION HAVE BEEN FIXED FOR HEARING IN VIEW OF THE RECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10 LA KHS FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF S ECTION 268A(1) OF THE INCOME-TAX ACT. 3. THE CBDT IN ITS RECENT CIRCULAR NO. 21/2015 DATE D 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE 1TAT WHEREIN THE TAX EFFECT INVOLV ED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, I T IS PROVIDED THAT THIS INSTRUCTION WOULD APPLY RETROSPECTIVELY A ND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH S MAY BE WITHDRAWN/NOT PRESSED. 4. THE LD. CIT-DR APPEARING ON BEHALF OF THE REVENU E BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WIT HDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FURTHER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT D ISMISSAL OF APPEAL, HOWEVER, IN ANY CASE, ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENCE IN THE MATTERS OF SUBSEQUENT YEARS WHERE THE TAX EFFECT IS ABOVE THE MONETARY LI MIT PRESCRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 3 ITA NO. 6278/ DEL/2013 CO NO. 137/ DEL/2015 3 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTH ER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPEAL OF THE REVENUE. HE REQUESTED FOR WITHDRAWAL OF THE CROSS OBJECTION OF THE ASSESSEE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PA RTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN T HIS APPEAL BY THE REVENUE IS BELOW RS. 10.00 LAKHS AND, THEREFORE , WE DEEM IT PROPER TO DISMISS THE APPEAL PARTICULARLY BECAUSE T HE PENDING APPEAL IS COVERED BY CIRCULAR IN VIEW OF PARA 10 OF THE CIRCULAR. HOWEVER, WE MAY CLARIFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT IS ABOV E RS.10 LAKHS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE WILL BE A T LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORD ER WHICH THE TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE F URTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENU E ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT BE AN ES TOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE, INVOLVED IN THESE APP EALS, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LAKHS. 4 ITA NO. 6278/ DEL/2013 CO NO. 137/ DEL/2015 4 7. KEEPING IN VIEW THE ABOVE CIRCULAR AND THE PROVI SIONS OF SECTION 268A OF THE INCOME-TAX ACT, 1961 AND WITHOU T GOING INTO MERITS OF THE CASE, WE DISMISS THE INSTANT APPEAL F ILED BY THE REVENUE AS TAX EFFECT IN THE APPEAL IS LESS THAN RS .10 LAKHS. 8. IN THE RESULT, THE APPEAL OF THE REVENUE AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE STAND DISMISSED AS WITHDRAWN. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 31. 12.2015. SD/- SD/- (L.P. SAHU) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 31 ST DECEMBER, 2015 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI