ITO, Khanna V. Shri Amrik Singh, Samrala

ITA 872/CHANDI/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9200 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 28-07-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 03-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANJIT SINGH
• Keywords: Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 872 /CHD/20 15 ASSESSMENT YEAR : 2007 - 08 INCOME TAX OFFICE R , WARD - 1, KHANNA VS. SHRI AMRIK SINGH, S/O. SHRI CHUHAR SINGH, DHILLON MARKET, CHANDIGARH ROAD, SAMRALA (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. MANJIT SINGH, DR REVENUE BY: NONE DATE OF HEARING 02 /0 8 /2016 DATE OF PRONOUNCEMENT 04 /0 8 /2016 O R D E R PER PRASHANT MAHARISHI , A . M . 1 . THIS APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER OF THE LD CIT(A) - 2, LUDHIANA DATED 15.09.2015 FOR THE ASSESSMENT YEAR 2007 - 08 . 2 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1 WHETHER IN THE CIRCUMSTANCES OF THE FACT OF THE CASE AND IN LAW, THE LD.CIT(A ) - 2, LUDHIANA WAS RIGHT IN DELETING PENALTY U/S 271(1)(C) AMOUNTING TO RS.73,72,310 / - ON ACCOUNT OF UNDISCLOSED LONG TERM CAPITAL GAIN U/S 45 OF THE I.T. ACT BY IGNORING THE HON'BLE PUNJAB & HI GH COURT FINDINGS, AS THE HON'BLE PUNJAB & HIGH COURT HAS DELETED ONLY ADDITION OF RS.3,01,50,000 / - ON ACCOUNT OF AMOUNT RECEIVABLE FOR SALE OF PLOT BUT CONFIRMED ADDITION OF RS.66,00,000/ - ON ACCOUNT OF SATE CONSIDERATION RECEIVED FOR SALE OF PLOT. THEREF ORE, TM? LD.CIT(A ) - 2, LUDHIANA HAS WRONGLY DELETED PENALTY OF R S.8,90,989/ - I//S 271(1)(C) OF THE I.T. ACT 1961 TO THE EXTENT OF ADDITIO N OF R .3393082 / - CONFIRMED ON ACCOUNT OF UNDISCLOSED LONG TERM CAPITAL GAIN U/S 45 OF THE I.T. ACT. 2. THAT THE ORDER OF CIT(APPEAL) - 2, LUDHIANA THE SET ASIDE AND THAT OF THE A.O. BE RESORTED. 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. T HEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. 4 . WE HAVE HEARD THE LD DR ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT FOR FILING 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 : - PAGE 2 OF 2 3. HENCEFORTH, APPEALS/SLPS SHALL NOT BE FILED IN CASES WHER E THE 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. 5 . WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVE NUE 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 AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. 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 0 4 / 08 /2016 . - S D / - - S D / - ( BHAVNESH SAINI ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 4 / 08 / 2016 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, CHANDIGARH