DCIT, New Delhi V. M/s Cascade Enterprises, Delhi

ITA 6522/DEL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7203 (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: 2010-2011
• Appeal Filed On: 08-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Keywords: Tax effect

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. 6522/DEL/2015 A.Y. : 2010-11 ACIT, CIRCLE 35(1), VS. M/S CASCADE ENTERPRISES NEW DELHI 4, KAUL APARTMENTS, ROOM NO. 904, E-2, 39, RAJPUR ROAD, CIVIC CENTRE, NEW DELHI DELHI 54 (PAN: AAAFC2088C) (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. FR MEENA, SR. DR ASSESSEE BY : NONE 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 14.10.2015 OF LD. CIT(A)-32, NEW DELHI PERTAINING T O ASSESSMENT YEAR 2010-11 ON THE FOLLOWING GROUNDS:- 1. WHETHER LD. CIT(A) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE ERRED IN NOT APPRECIATING THE FACTS OF THE CASE PROPERLY. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 16,98,503/- (MAINTENANCE CHARGES, ELECTRICITY CHARGES, INTEREST ON BORROWED CAPITAL, PROPERTY TAX AND GROUN D RENT) ON THE GROUND THAT IT WAS COMMERCIAL PROPERTY IGNORING THE PAGE 2 OF 3 INSPECTORS REPORT STATING THAT THE PROPERTY WAS NEVER U SED FOR BUSINESS PURPOSE? 2. IN THIS CASE, NOTICE OF HEARING TO THE ASSESSEE W AS SENT BY THE REGISTERED AD POST, IN SPITE OF THE SAME, ASSESSEE, NOR HIS AUTH ORIZED REPRESENTATIVE APPEARED TO PROSECUTE THE MATTER IN DISPUTE, NOR FILED ANY APP LICATION FOR ADJOURNMENT. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE AND THE ISSUE INVOLVED IN THE PRESENT APPEAL, I AM OF THE VIEW THA T NO USEFUL PURPOSE WOULD BE SERVED TO ISSUE NOTICE AGAIN AND AGAIN TO THE ASSES SEE, THEREFORE, I AM DECIDING THE PRESENT APPEAL EXPARTE QUA ASSESSEE, AFTER HEAR ING THE LD. DR AND PERUSING THE RECORDS. 3. 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/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME PAGE 3 OF 3 COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. 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. 5. 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. 6. 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