ITO, New Delhi V. M/s IFFCO Chhattisgarh Power Ltd., New Delhi

ITA 6483/DEL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7201 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 3
• Next Hearing Date: 22-08-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 07-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Keywords: Tax effect; Capital receipt

Judgement Text

PAGE 1 OF 3 IN THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH SMC-3: NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 6483/DEL/2015 A.Y. : 2011-12 INCOME TAX OFFICER, VS. M/S IFFCO CHHATISGARH POWE R LTD. WARD 12(1), NEW DELHI C-1, DISTT. CENTER, SAKET PL ACE, ROOM NO. 409-A, NEW DELHI 110 0017 CR BLDG., NEW DELHI (PAN: AABCI5525Q) (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. FR MEENA, SR. DR ASSESSEE BY : SH. SURENDER KUMAR, CA DATE OF HEARING : 22-08-2016 DATE OF ORDER : 02-09-2016 O R D E R PER H.S. SIDHU, JM THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 07.9.2015 OF LD. CIT(A)-3, NEW DELHI PERTAINING TO ASSESSMENT YEAR 2011-12 ON THE FOLLOWING GROUNDS:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, LD. CIT(A) ERRED IN TREATING THE INTERE ST EARNED BY THE ASSESSEE BY PARKING THE SHARE APPLICATION MONEY IN BA NK ACCOUNT AS CAPITAL RECEIPTS INSTEAD OF INCOME FROM OTHER SOURCES. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN RELYING UPON TH E HONBLE PAGE 2 OF 3 DELHI HIGH COURT JUDGMENT IN THE CASE OF M/S INDIAN OI L PANIPAT CONSORTIUM LTD. (2009) 315 ITR 255 AND ALSO U PON THE HONBLE SUPREME COURT DECISION IN THE CASE OF M/S BOKARO STEEL LIMITED (1999) 236 ITR 315 WITHOUT APPRECIATING THE RATIO OF HONBLE SUPREME COURT JUDGM ENT IN THE CASE OF M/S TUTICORIN ALKALIES CHEMICALS & FERTILIZERS LIMITED 227 ITR 172 3. THE APPELLANT CRAVES TO ADD, ALTER, AMEND, MODIFY, AD D OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THE APPEAL. 2. FROM THE ABOVE, I FIND THAT THE TAX EFFECT IN TH E REVENUES APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEAL IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 D ATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF T HE 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 LIMITS GIVE N 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 MONETARY LIMITS PR ESCRIBED 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/ PAGE 3 OF 3 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 INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTION O R DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHOR ITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE PRESE NT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE A BOVE SAID CBDTS INSTRUCTIONS. 4. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 D ATED 10 TH DECEMBER, 2015, I AM OF THE VIEW THAT THE REVENUE SHO ULD HAVE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE T RIBUNAL. I AM ALSO OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. ACCORD INGLY, THE REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02/09/2016. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE: 02/9/2016 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4.CIT (A) 5. DR , ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES