ITO, NEW DELHI vs. M/S. STATUS APPARELS PVT. LTD., NEW DELHI

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ITA 754/DEL/2012Status: DisposedITAT Delhi28 February 2017AY 2003-043 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the tax effect in the Revenue's appeal was below the monetary limit prescribed by CBDT Circular No. 21/2015. Therefore, the appeal was not maintainable and should have been withdrawn or not pressed.

What were the facts?

The Department appealed an order of the CIT(A) concerning assessment year 2003-04. The appeal raised grounds related to quashing of proceedings under Section 147 and deletion of an addition on account of share application money.

What were the issues?

Whether the Department's appeal is maintainable before the Tribunal given the tax effect is below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SHRI H.S. SIDHU & SHRI PRASHANT MAHARISHI, ACOUNTANT MEMBER

For Appellant: Smt. Shaveta Nakra Dutta, Sr. DR

This appeal by the Department is directed against the Order dated 11.10.2011 of Ld. CIT(A)-XII, New Delhi pertaining to assessment year 2003-04 on the following grounds:- “(1) The Ld. CIT(A) erred in law and on the facts of the case in quashing the proceedings initiated u/s. 147 of the I.T. Act. (2). The Ld. CIT(A) erred in law and on the facts of the case in deleting the addition of Rs. 15,02,250/- made by AO on account of share application money. (3) The appellant craves to amend modify, alter, add or forego any ground of appeal at any time before or during the hearing of this appeal.”

2.

At the time of hearing Ld. Counsel of the assessee has filed the Calculation Sheet with regard to Tax Effect involved in the present case. On perusing the grounds of appeal

as well as the calculation sheet, we are of the considered view that tax effect in the Revenue’s Appeal is less than Rs.10,00,000/-, therefore, the Department’s Appeal is not maintainable, in view of the Circular No. 21/2015 dated 10th 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 CBDT’s Circular are reproduced as under:- “3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Monetary Limit S No Appeals in Income-tax matters (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.

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 instructions on this subject, operative at the time when such appeal was filed.”

3.

It is not in dispute that the Board’s instruction 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 instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs, prescribed in the above said CBDT’s Instructions.

4.

Keeping in view the CBDT Instruction No. 21/2015 dated 10th December, 2015, we are of the view that the Revenue should have withdrawn/ not pressed the instant appeal before the Tribunal. We are also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. Accordingly, the Revenue’s Appeal is dismissed.

5.

In the result, Appeal filed by the Revenue Stands dismissed. Order pronounced in the Open Court on 28/02/2017.

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