ACIT, Range-II, V. Joginder Kaur,

ITSSA 207/DEL/2005

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 1312 (ITAT-DELHI)
• Duration Of Justice: 10 year(s) 7 month(s) 25 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 21-12-2015
• Assessment Year: misc
• Appeal Filed On: 27-04-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BARNWAL
• Keywords: Tax effect

Judgement Text

O INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI N.K.SAINI, ACCOUNTANT MEMBER AND SHRI VIJAY PAL ROA , JUDICIAL MEMBER IT (SS)A NO. 207 /DEL/ 2005 (ASSESSMENT YEAR: 01.04.1989 TO 12.03.1999 ) ACIT, RANGE - II, FARIDABAD VS. SMT. JOGINER KAUR, W/O. SH. INDERJEET SINGH, SABHARWAL, 1J/9, NIT, FARIDABAD ( ASSESSEE ) (RESPONDENT) C O . NO. 275 /DEL/ 2005 (ASSESSMENT YEAR: 01.04.1989 TO 12.03.1999 ) SMT. JOGINER KAUR, W/O. SH. INDERJEET SINGH, SABHARWAL, 1J/9, NIT, FARIDABAD VS. ACIT, RANGE - II, FARIDABAD ( ASSESSEE ) (RESPONDENT) APPELLANT BY : SMT. ANIMA BARNWAL, SR. DR RESPONDENT BY : SH. RAKESH GUPTA, ADV SH.TARUN KUMAR, ADV DATE OF HEARING 21 .12.2015 DATE OF PRONOUNCEMENT 22 . 12 .2015 O R D E R PER VIJAY PAL RAO, JM THESE ARE THE APPEAL FILED BY THE DEPARTMENT AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 16.02.2005 OF LD CIT(A) - FARIDABAD FOR THE ASSESSMENT YEAR 01.04.1989 TO 12.03.1999. 2. AT THE OUTSET OF THE HEARING ITSELF, THE LD. AR BROUGHT TO MY 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. HE HAS ALSO FILED THE COMPUTATION TO SHOW T HAT THE TAX EFFECT IN THIS CASE IS BELOW RS.10 LAKHS. THEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DISMISSED AS PER THE INSTRUCTION OF THE CBDT AND ALSO SUBMITTED THAT THE CROSS OBJECTION PREFERRED BY THE ASSESSEE IS NOT PRESSED. 3. LD. DR WAS FAIR ENOUGH TO ADMIT THE AFORESAID FACTUAL POSITION. PAGE NO. 2 4. I HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. I FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE IN COME 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 THE TAX EFFECT DOES NOT EXCEED THE MONETAR Y 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. I FIND THAT THE LD. AR FOR THE ASSESSEE HAS FILED A COMPUTATION CHART SHOWING THE TAX EFFECT WHICH 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 AFORES AID INSTRUCTION SICNE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. 5 .1 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 LAK H S. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. SINCE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT, THEREFORE, T HE CROSS OBJECTION OF THE ASSESSEE BECOMES INFRACTUOUS AND ACCORDINGLY DISMISSED. 6 . IN THE RESULT, APPEALS FILED BY THE DEPARTMENT AND CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 . 12 .201 5 . - SD/ - - SD/ - (N.K.SAINI ) ( VIJAY PAL RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22 / 12 / 2015 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT PAGE NO. 3 3 . CIT 4 . CIT (A) 5 . DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI