DCIT, Faridabad V. M/s. Reliance Estate Agency, Faridabad

ITA 714/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7109 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 22-08-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 07-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Assessee Lawyers: ABHISHEK ANAND
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NOS. 714 & 715/DEL/2014 ASSESSMENT YEARS: 2003-04 & 2006-07 DCIT-CIRCLE-I, VS. M/S RELIANCE ESTATE FARIDABAD AGENCY, NEELAM CHOWK, 410-411, NEHRU GROUND NIT, FARIDABAD (PAN: AABFR2855B) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. F.R. MEENA, SR. DR RESPONDENT BY : SH. ABHISHEK ANAND, ADV. DATE OF HEARING : 22-08-2016 DATE OF ORDER : 05-09-2016 ORDER PER H.S. SIDHU, J.M. THESE TWO APPEALS FILED BY THE DEPARTMENT ARE DIR ECTED AGAINST THE SEPARATE ORDERS BOTH DATED 5.12.2013 OF LD. CIT(A)( CENTRAL), GURGAON PERTAINING TO ASSESSMENT YEARS 2003-04 & 2006-07. SINCE THE ISSUE INVOLVED IN THE THESE APPEALS ARE COMMON AND IDENTICAL, HENC E, THEY ARE BEING CONSOLIDATED AND DISPOSED OF BY THIS COMMON ORDER F OR THE SAKE OF BREVITY. 2. THE COMMON GROUND RAISED IN BOTH THESE APPEALS R EAD AS UNDER:- I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) WAS RIGHT IN REDUCING THE PENALTY U/ S. 271(1)(C) FROM 300% TO 200% FOR CONCEALMENT OF PARTICULARS OF INCOME OF RS. 10,98,550/- AND RS. 9,34,850/- ON ACCOUNT OF UN DISCLOSED PROFIT AND CASH COMMISSION RESPECTIVELY? (II) THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUND OF APPEAL BEFORE THE APPEAL IS HEARD OR DISPOSED OFF. ITA NOS. 714& 715/DEL/2014 2 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. AT THE THRESHOLD, WE FIND THAT THE TAX EFFECT IN THE R EVENUE APPEALS IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEALS ARE NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 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 THE AFORESAID CBDTS C IRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN 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 MONETA RY LIMITS PRESCRIBED 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 COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L WAS FILED. 4. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORI TIES, THEREFORE, THE ITA NOS. 714& 715/DEL/2014 3 DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE P RESENT 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 ABOVE SAID CBDTS INSTRUCTIONS. 5. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE VIEW THAT THE REVENUE SHOULD HA VE WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. WE ARE ALS O OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/09/2016. SD/- SD/- (O.P. KANT) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 05/09/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR