ACIT, NEW DELHI vs. M/S. SPLS LTD., NEW DELHI

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ITA 734/DEL/2012Status: DisposedITAT Delhi01 July 2016AY 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 CBDT circular regarding monetary limits for appeals is binding on the Department. Since the tax effect was below the prescribed limit, the Department should have withdrawn or not pressed the appeal.

What were the facts?

The Department appealed an order from the CIT(A) concerning assessment year 2003-04. The assessee pointed out that the tax effect in the appeal was below the monetary limit prescribed by CBDT circulars for filing appeals.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 147,Section 68

AI-generated summary — verify with the full judgment below

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

Before: SHRI H.S. SIDHU & SHRI O.P. KANT

For Appellant: Smt. Anima Barnwal, Sr. DR

This appeal by the Department is directed against the Order dated 09.8.2011 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 and circumstances 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 and circumstances o the case in deleting the addition of Rs. 24,70,200/- made by the AO u/s. 68 of the I.T. Act.

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 a statement of Computation of Disputed tax wherein the total tax involved in the present Appeal is Rs. 8,15,166/-. Hence, he stated that the tax involved in the present appeal is less than the prescribed limit of Rs. 10 lacs, therefore, the Appeal of the Revenue may be dismissed on this account.

3.

We have heard both the parties and perused the material on record. From the above, we find that the 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 S Appeals in Income-tax Limit (in No matters 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.”

4.

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.

5.

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. 6. In the result, Appeal filed by the Revenue Stands dismissed. Order pronounced in the Open Court on 01/07/2016.

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