ITO, Hisar V. M/s. V.S. Lather Sons HUF, Hisar

ITA 6309/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4049 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 29-05-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 18-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Keywords: Competent authority; Tax effect
• Section: 15

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC BENCH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO. 6309 /DEL/201 4 [A.Y. 20 1 0 - 1 1 ] THE I.T. O VS. V.S. LATHER SONS, HUF WARD 4 47, SECTOR 15 - A HISAR HISAR PA N : AAFHV 0903 E [APPELLANT] [RESPONDENT] DATE OF HEARING : 0 5 . 1 0.2017 DATE OF PRONOUNCEMENT : 11 . 1 0.2017 ASSESSEE BY : SHRI RAMESH GOEL, ADV REVENUE BY : SHRI T. VASANTHAN SR. DR ORDER THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER OF THE LD. CIT(A) , ROHTAK VIDE ORDER DATED 1 5 .0 9 .201 4 FOR A.Y. 201 0 - 1 1 . 2. THIS APPEAL IS FIXED FOR HEARING IN VIEW OF THE R ECENT CBDT INSTRUCTION NO. 21/2015 DATED 10.12.2015, REVISING THE MONETARY LIMIT OF RS.10.00 LAKH FOR NOT FILING THE APPEAL BEFORE THE TRIBUNAL IN TERMS OF SECTION 268A(1) OF THE INCOME - TAX ACT. 2 3. THE CBDT IN ITS CIRCULAR NO. 21/2015 DATED 10.12.2015 HAS PROVIDED THAT NO DEPARTMENTAL APPEAL SHALL BE FILED BEFORE THE I TAT WHEREIN THE TAX EFFECT INVOLVED IS LESS THAN RS.10 LAKHS. FURTHER, IN PARA 10 OF THE CIRCULAR, IT IS PROVIDED THAT THIS INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BEL OW THE SPECIFIED TAX LIMIT OF RS.10 LAKHS MAY BE WITHDRAWN/NOT PRESSED. 4. THE LEARNED CIT - DR APPEARING ON BEHALF OF THE REVENUE BEFORE US, AT THE OUTSET, SUBMITTED THAT APPEAL CAN BE WITHDRAWN ONLY AFTER GETTING THE APPROVAL OF COMPETENT AUTHORITY. HE FUR THER REFERRED TO PARA 7 OF THE CIRCULAR TO SUBMIT THAT DISMISSAL 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 LIMIT PRES CRIBED BY THIS CIRCULAR AND THE ISSUE SHOULD BE DECIDED ON MERITS. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, STATED THAT THE CIRCULAR IS SQUARELY APPLICABLE TO THE PRESENT APPEAL OF THE REVENUE. 3 6. AFTER CONSIDERING THE SUBMISSIONS OF B OTH THE PARTIES, WE FIND THAT PRIMA FACIE, THE TAX EFFECT INVOLVED IN TH I S APPEAL BY THE REVENUE IS BELOW RS. 10.00 LACS AND, THEREFORE, WE DEEM IT PROPER TO DISMISS THE APPEAL PARTICULARLY BECAUSE THE 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 ABOVE RS.10 LACS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE WI LL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION FOR RECALLING OF THIS ORDER WHICH THE TRIBUNAL WILL CONSIDER IN ACCORDANCE WITH LAW. WE FURTHER FIND CONSIDERABLE FORCE IN THE CONTENTION OF THE CIT/DR THAT THIS ORDER CANNOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN TH IS APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUES, INVOLVED IN TH IS APPEAL, BEFORE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS.10 LACS. 7. WE ARE ALSO INCLINED TO AGRE E WITH THE CONTENTION OF THE LD. DR THAT THIS ORDER WOULD NOT BE CONSIDERED AS AN ACCEPTANCE BY THE REVENUE ON THE ISSUE INVOLVED IN THIS APPEAL AND WILL NOT BE AN ESTOPPEL FOR THE REVENUE TO TAKE UP THE ISSUE INVOLVED IN THIS 4 APPEAL BEFORE THE ITAT ON MER ITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN RS. 10 LAKHS. WITH THESE DIRECTIONS WE DEEM IT PROPER TO DISMISS THE PRESENT APPEAL IN THE LIGHT OF THE CIRCULAR NO. 21/2015 OF CBDT DATED 10 TH DECEMBER 2015. ACCORDINGLY, WITHOUT GOING INTO MERITS OF TH E CASE, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LAKHS. 8. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED . THE ORDER IS PRO NOUNCED IN THE OPEN COURT ON 11 . 1 0.2017. SD/ - [B. P. JAIN] ACCOUNTANT MEMBER DATED: 11 TH OCTOBER , 2017 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI