ITO, New Delhi V. Sh. Lalit Mohan Kapur, New Delhi

ITA 677/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7399 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 06-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAN KANT GARG
• Keywords: Fair market value; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SMT. BEENA PILLAI : JUDICIAL MEMBER ITA NO. 677 /DEL/2014 ASSTT. YR: 2009-10 INCOME-TAX OFFICER, VS. SH. LALIT MOHAN KAPUR, WARD-32(4), NEW DELHI. C-244, IIND FLOOR, DEFENSE COLONY, NEW DELHI-110024. PAN: AOIPK 6962 M ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI RAMAN KANT GARG SR. DR RESPONDENT BY : NONE DATE OF HEARING : 06/01/2016. DATE OF ORDER : 12/01/2016. O R D E R PER S.V. MEHROTRA, A.M: THIS IS REVENUES APPEAL AGAINST THE ORDER DATED 13 .11.2013, PASSED BY THE LD. CIT(A)-XXVI, NEW DELHI, RELATING TO A.Y. 20 09-10. SOLE EFFECTIVE GROUND RAISED IS AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, TH4E CIT(A) HAS ERRED IN ENHANCING THE COST OF ACQUISITI ON OF PROPERTY (FMV) FROM RS. 4 LAKH TO RS. 10 LAKH, WIT HOUT ANY BASIS HOLDING RISE IN PROPERTY CANNOT BE MORE THAN 2.5 TIME THE ORIGINAL COST OF THE PROPERTY. 2 2. NONE PUT IN APPEARANCE ON BEHALF OF THE ASSESSEE AT THE HEARING. WE PROCEED TO DISPOSE OF THE DEPARTMENTAL APPEAL, EX P ARTE, QUA THE ASSESSEE AND IN THAT PROCESS WE HAVE HEARD LD. DR. 3. APPARENTLY, THE TAX EFFECT INVOLVED IN THE PRESE NT DEPARTMENTAL APPEAL IS LESS THAN RS. 10 LAKHS. THE RECENT CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015 STIPULATES THAT NO DEPARTMENTAL APPEAL, INVOLVING TAX EFFECT BELOW RS.10 LAKHS, SHALL BE FILED BEFORE THE ITAT. PARA 10 OF THE CIRCULAR SPECIFIES THAT SUCH INSTRUCTION WOULD APPLY RETROSP ECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS.10 LAKH MAY BE WITHDRAWN/NOT PRESSED. 4. LD. DR COULD NOT CONTROVERT THE AFOREMENTIONED FACTUAL POSITION. HE, HOWEVER, REFER RING TO CLARIFICATION GIVEN IN PARAGRAPH 7 OF THE CIRCULAR, SUBMITTED THA T WITHDRAWAL OF THE APPEAL BY THE REVENUE ON ACCOUNT OF LOW TAX EFFECT SHOULD NOT BE CONSIDERED AS A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLVED IN THIS APPEAL AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SI MILAR ISSUE ARISES BEFORE THE ITAT, WHERE THE APPEAL IS ABOVE THE TAX LIMIT, AS P RESCRIBED IN THIS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 5. SINCE THE TAX EFFECT INVOLVED IN THE PRESENT DE PARTMENTAL APPEAL IS BELOW 10 LAKHS, THEREFORE, IN VIEW OF RECENT CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015, THIS APPEAL IS NOT MAINTAINABLE I N TERMS OF SECTION 268A(1) OF THE INCOME-TAX ACT. HOWEVER, WE MAY CLAR IFY THAT IF ON RECEIPT OF THIS ORDER, THE ASSESSING OFFICER FINDS THAT THE TAX EFFECT INVOLVED IS ABOVE RS.10 LACS OR IN ANY OTHER MANNER, THE CIRCULAR IS NOT APPLICABLE IN VIEW OF 3 EXCEPTIONS CULLED OUT IN THE CIRCULAR, HE WILL BE A T LIBERTY TO TAKE SUCH STEPS, AS DEEM FIT, TO RECALL THE ORDER. WE ALSO AGREE WI TH THE CONTENTION OF THE LEARNED CIT(DR) THAT THIS ORDER WOULD NOT BE CONSID ERED 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 INVOL VED IN THIS APPEAL BEFORE THE ITAT ON MERITS IF THE TAX EFFECT IN THOSE YEARS IS MORE THAN 10 LAKHS. 6. KEEPING IN VIEW THE AFOREMENTIONED CBDT CIRCUL AR AND THE PROVISIONS OF SECTION 268A OF THE INCOME-TAX ACT, 1 961, WITHOUT GOING INTO MERITS OF THE CASES, WE DISMISS THE INSTANT APPEAL FILED BY THE REVENUE AS TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10.00 LACS. ORDER PRONOUNCEMENT IN OPEN COURT ON 12/01/2016. SD/- SD/- (BEENA PILLAI ) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 12/01/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.