ITO, New Delhi V. Sh. Pradeep Kumar Sharma, New Delhi

ITA 667/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4041 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 20-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 06-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 667/DEL/2014 (ASSESSMENT YEAR: 2007 - 08 ) ITO, WARD - 34(2), NEW DELHI VS. PRADEEP KUMAR SHARMA, PROP. SHIV SHAKTI CARDS, WS - 43, SUDAMA PURI, BABAR PUR, NEW DELHI PAN:AUVPS5582J (APPELLANT) (RESPONDENT) REVENUE BY : SH RI ATIQ AHMAD, SR. DR ASSESSEE BY: NONE DATE OF HEARING 15/01/ 201 8 DATE OF PRONOUNCEMENT 15 / 01/2018 O R D E R PER PRASHANT MAHARISHI , A. M. 1. THIS APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER DATED 27/12/1013 OF LD CIT(A) - X VII , NEW DELHI FOR THE ASSESSMENT YEAR 2007 - 08 . 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ORDER OF THE LD. CIT (A) IS BAD IN LAW AND NOT IN CONSONANCE WITH FACTS OF THE CASE.' 2. 'ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE, THE LD CIT (A) HAD ERRED IN RESTRICTING THE ADDITION TO RS. 7,54,330/ - OUT OF THE TOTAL ADDITION OF RS. 45, 25,982/ - MADE BY THE A.O. ON ACCOUNT OF PROFIT ON SALE OF PAPERS NOT DECLARED IN RETURN.' 3. 'ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE LD CIT (A) HAD ERRED IN RESTRICTING THE ADDITION TO RS. 2,60,785/ - OUT OF TOTAL ADDI TION OF RS. 10,15,115/ - MADE BY THE A.O. ON ACCOUNT OF INVESTMENT IN PAPER STOCK DURING THE YEAR.' 4. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD CIT(A) HAD ERRED IN ESTIMATION OF PROFIT LIMITED TO THE SALE OF PAPER FOR TWO MONTHS.' 5. 'ON T HE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAD ERRED IN CONSIDERING THAT IT WAS THE APPELLANT WHO SUBMITTED INVESTMENT IN STOCK OF PAPER TO THE BANKER.' ITO VS. PRADEEP KUMAR SHARMA ITA NO. 667/DEL/2014 (ASSESSMENT YEAR:2007 - 08) PAGE | 2 6. 'ON THE FACTS IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAD ERRED IN PASSIN G THE ORDER WITHOUT AFFORDING THE OPPORTUNITY TO THE A.O' 7. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAD ERRED IN PASSING THE ORDER WITHOUT CONSIDERING THE ORDER PASSED BY THE A.O.' 3. AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.10 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REV ENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE. 5. WE HAVE HEARD THE LD DR ON THE ISSUE AND ALSO PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT FOR FILI NG THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHERE TH E TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.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 PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 6. WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.10 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 AFOR ESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. ITO VS. PRADEEP KUMAR SHARMA ITA NO. 667/DEL/2014 (ASSESSMENT YEAR:2007 - 08) PAGE | 3 5. IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRECEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.10 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 5 / 01/2018 . - S D / - - S D / - ( SUDHANSHU SRIVASTAVA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 5 / 01/2018 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI