ACIT, Muzaffarnagar V. M/s. Magnet Trading & Chit Fund (P) Ltd., Muzaffarnagar

MA 206/DEL/2011

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 8019 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: misc
• Appeal Filed On: 28-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SRUJANI MOHANTY SEN IOR
• Keywords: Question of law; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER MA NO.206/DEL/2011 (IN ITA NO.459/DEL./2011) (ASSESSMENT YEAR : 1985-86) ACIT, CIRCLE 2, VS. M/S. MAGNET TRADING & CHIT FU ND (P) LTD. MUZAFFARNAGAR. GARHI GORWAN, MUZAFFARNAGAR. (APPLICANT) (RESPONDENT) APPLICANT / REVENUE BY : MRS. SRUJANI MOHANTY, SEN IOR DR ASSESSEE BY : NONE ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS MISC. APPLICATION FILED BY THE REVENUE AGAINST THE ORDER OF THE ITAT, DELHI BENCH E, NEW DELHI IN ITA NO.459/DEL/2011 D ATED 29.03.2011.. THE MISC. APPLICATION IS FILED ON ACCOUNT OF WORKING OUT THE TAX EFFECT AT RS.2,19,484/- WHICH AS PER REVENUE IS MORE THAN THE PRESCRIBED LIMITED IN CBDTS INSTRUCTION NO.5/2008 DATED 15.05.2008. 2. WE HAVE HEARD BOTH THE SIDES. WE FIND THAT THE APPEAL OF THE REVENUE HAS BEEN DISMISSED BY FOLLOWING THE INSTRUCTION NO.2 OF 2005 DATED THE 24 TH OCTOBER, 2005 WHEREIN THE PRESCRIBED MONETARY LIMIT FOR FILI NG AN APPEAL BEFORE THE ITAT IS RS.2 LACS. CBDT HAS ALSO ISSUED THE INSTRUCTION NO. 3/2011 DATED THE 9 TH FEBRUARY, 2011 WHEREIN THE PRESCRIBED MONETARY LIMI T FOR FILING AN APPEAL BEFORE MA NO.206/DEL/2011 (IN ITA NO.459/DEL./2011 2 THE ITAT IS RS.3 LACS, WAS ALSO AVAILABLE BEFORE US PRIOR TO PASSING THE AFORESAID ORDER IN THE APPEAL. INSTRUCTION NO. 3/2011 DATED 09.02.2011 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPART MENT BEFORE INCOME-TAX APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND HON BLE SUPREME COURT. MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE T RIBUNAL IS RS. 3.00 LAKH, BEFORE HONBLE HIGH COURT RS. 10.00 LAKH AND BEFORE HONB LE SUPREME COURT RS. 25.00 LAKH. 3. THE HONBLE DELHI HIGH COURT VIDE ORDER DATED 2 5.03.2011 IN ITA NOS. 3 TO 5/2010 HAS HELD AS UNDER:- IT IS STATED THAT THE TAX IMPACT IN THE PRESENT CASES IS LESS THAN RS. 10.00 LAKHS. THE DEPARTMENT HAS RECENTLY ISSUED AN INSTRUCTION BEARING NO. 3/2011 DATED 09.02.2011, WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING NO. 5/2008 DATED 15.05.2008 EXCEPT THAT IN SO FAR AS THE HIGH COURT IS CONCERNED, T HE MONETARY LIMIT IN RESPECT OF APPEALS WHERE THE QUESTIONS OF LAW R AISED NEED NOT TO BE ANSWERED, HAS BEEN RAISED FROM RS. 4.00 LAKHS TO RS. 10.00 LAKHS. THE DIVISION BENCH OF THIS COURT IN ITA NO. 89/199 9 DECIDED ON 28.01.2011 HAS ALREADY HELD THAT THE INSTRUCTIO N BEARING NO. 5/2008 DATED 15.05.2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD TH US NATURALLY EQUALLY APPLY TO THE INSTANT INSTRUCTION BEARING NO.3/201 1 DATED 09.02.2011, AS WELL. THE TAX EFFECT BEING LESS THAN RS.10. 00 LAKHS, THE QUESTION OF LAW DOES NOT REQUIRE TO BE ANSWERED. THE APP EALS ARE DISPOSED OF ACCORDINGLY. 4. HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008 DATED 03.03.2011 HAS MADE THE FOL LOWING OBSERVATIONS: THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS. 4,65,860/-. AS PER THE RECENT GUIDELINES OF THE CBDT, APPEAL I N THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS. 10.00 LAKHS, AR E NOT TO BE ENTERTAINED. MA NO.206/DEL/2011 (IN ITA NO.459/DEL./2011 3 THIS COURT IN THE CASE OF CIT, DELHI-III VS. M/S P .S. JAIN & CO., BEING ITA NO. 179/1991 DECIDED ON 2 ND AUGUST, 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDIN G CASES. 5. THERE IS ALSO A CONTRARY DECISION OF HON'BLE PUN JAB & HARYANA HIGH COURT WHERE IT IS HELD THAT THE INSTRUCTION SHALL BE APPL ICABLE ONLY TO THE APPEALS FILED AFTER 9 TH FEBRUARY, 2011. SINCE THE HON'BLE DELHI HIGH COUR T HAS HELD THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES ALSO, WE FIND NO MERITS IN THE MISC. APPLICATION WHICH IS ACCORDINGLY DISMISSED. 6. IN THE RESULT, THE MISC. APPLICATION FIELD BY TH E REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF APRIL, 2012 AFTER THE CONCLUSION OF THE HEARING. SD/- SD/- (RAJPAL YADAV) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : THE 27 TH DAY OF APRIL, 2012 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT (A), MUZAFFARNAGAR. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.