ITO, NAINITAL vs. M/S. THE NAINITAL GYMKHANA DISTRICT SPORTS ASSOCIATION, NAINITAL

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ITA 5554/DEL/2013Status: DisposedITAT Delhi29 July 2016AY 2010-112 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 appeal was filed in violation of CBDT Circular No. 21/2015, which sets a pecuniary limit for appeals. As the circular is binding, the appeal was deemed non-maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT challenging the deletion of an addition of Rs. 27,81,694/-. The tax effect involved was below Rs. 10 lakhs.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the pecuniary limit prescribed by CBDT circulars, and if such circulars are binding on tax authorities.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘D’ NEW DELHI

Before: SMT DIVA SINGH & SH.L.P.SAHU

For Appellant: Ms. Anima Barnwal, Sr.DR
Hearing: 27.07.2016Pronounced: 29.07.2016

ORDER

PER DIVA SINGH, JUDICIAL MEMBER

1.

The present appeal has been filed by the Revenue assailing the correctness of the order dated 29.07.2013 of CIT(A)-II, Dehradun pertaining to 2010-11 assessment year. Ld. Sr.DR inviting attention to the material available on record submitted that the tax effect involved in the present appeal is much below Rs.10 lakh as the deletion of Rs.27,81,694/- is challenged in the present proceedings.

2.

No one is present on behalf of the assessee. We have considered the material available on record and we find that the appeal has been preferred by the Revenue in violation of Circular No.21/2015 dated 10th December, 2015 of CBDT. By the aforesaid circular the pecuniary limit for filing the appeal before the ITAT has been prescribed beyond Rs.10 lakhs. Para 3 of the aforesaid Circular has been made applicable vide para 10 retrospectively. Considering the settled legal precedent that the Board’s instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities, we hold that the appeal is non-maintainable.

I.T.A .No.-5554/Del/2013

3.

In view of the above discussion, the present appeal preferred by the Revenue in violation of CBDT Circular No.21/2015 (cited supra) is not maintainable and hence, the same is dismissed as such making it clear that since the present appeal has not been disposed of on merits, but due to the above reason, this order will not have any judicial precedence. Accordingly, the appeal of the Revenue is dismissed as non-maintainable.

4.

In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 29th July 2016.

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