ACIT, CIRCLE-2, NAGPUR vs. SMT ABHA SATISH CHATURVEDI, NAGPUR

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ITA 462/NAG/2014Status: DisposedITAT Nagpur19 June 2017AY 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 decided that the appeal filed by the Revenue was not maintainable. The reasoning was based on CBDT Circular No. 21/2015, which mandates that appeals should not be filed before the Tribunal if the tax effect is below Rs. 10 lac. The Tribunal further noted that this instruction applies retrospectively to pending appeals. The Tribunal cited the Supreme Court's decision in Navneet Lal Zaveri Vs. AAC 56 ITR 198 (SC) to support the view that CBDT circulars are binding on departmental officers. Consequently, the Tribunal dismissed the appeal in limine without delving into the merits of the case. No issue was expressly left undecided.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT), Nagpur Bench, against the order of the CIT(A)-1, Nagpur, dated 15/07/2014, pertaining to assessment year 2010-11. The appeal was filed by the Revenue against Smt. Abha Satish Chaturvedi. The ITAT noted that the tax effect on the income under dispute was less than Rs. 10 lac. The Tribunal also referred to CBDT Circular No. 21/2015 dated 10th December, 2015, which directs that no appeal should be filed before the Tribunal if the tax effect does not exceed Rs. 10 lac. This circular also applies to pending appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the Tribunal, given that the tax effect is less than Rs. 10 lac as per CBDT Circular No. 21/2015? (Question of law) The Revenue's contention was not recorded in the judgment. The Assessee's contention was not recorded in the judgment. The Tribunal relied on CBDT Circular No. 21/2015 and the Supreme Court decision in Navneet Lal Zaveri Vs. AAC 56 ITR 198 (SC) to determine the maintainability of the appeal.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

L.TA No462 /Nag/2014 Assessluctyear;2010-11 EEkee #i#t IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH; NAGPUR BEFORE SHRI P. K. BANSAL, VICE PRESIDENT AND SHRI AMARJIT SINGH; JUDICIAL MEMBER LTA No.462INag/2014 Assessment_year:2010-11 ACIT: Circle-2, Nagpur. Vs, Smt. Abha Satish Chaturvedi, 27A, Kotwalnagar; Nagpur: PAN:ADAPG 9673 (Respondent (Appellant- Appellant by Respondent by Date of hearing Date Of pronouncement Shri A, R Ninave Shri K. P. Dewani 19/06/2017 19/06/2017 ORDER PER P KBANSAL_VR This appeal has been filed by the Revenue against the order of the CIT(A)-1, Nagpur dated 15/07/2014 relating to assessment year 2010- 20f1, 2 At the very outset; we noted that in this case the tax effect on the income under dispute is less than Rs.1Q lac We further noted that the Central Board of Direct Taxes vide Circular No. 21/2015 dated 10t December, 2015 file no. 279 of Misc; 142/2007 TTJ (PT) has issued the direction in supersession of the Instruction No.5/2014 dated 10/07/2014 in pursuance with the power interested u/s. 2684 of the Income Tax Act that no appeal should be filed before this Tribunal in case tax effect does not exceed Rs.10 lac; The "tax effect" in this regard means the difference between the tax on the total income assessed and the tax that what have Qmi 1.T4,No,6Z/Nag/ 2014 Assessment yeat:2O10-11 been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed: This circular further states that tax will not include any interest thereon the chargeability oF interest Itself is in dispute We further noted that under paragraph 10 which is reproduced as under, it has been mentioned in the circular that this instruction will apply even to the pending appeals. '

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 withdrawnfnot 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 In the impugned case, we noted that the tax effect On the issue under dispute does not exceed Rs.10 lac; In view of this fact 35 per the instruction; the Revenue is not supposed to press the appeal. We; therefore; dismiss the appeal filed by the Revenue in limine without going into the merits &f the case as in our opinion the circulars issued by CBDT are binding on the Departmental officers in View of the provision of Section 2684(1) of the Act. The said view has been taken by Honble Supreme Court in the case of Navneet Lal Zaveri Vs, AAC 56 ITR 198 (SC): We accordingly dismiss the appeal filed by the Revenue: 5. In the result; the appeal of the Revenue stands dismissed. (Order pronounced in the open court on 19/06/2017 Sd} Sd/_ (AMARJIT SINGH) Judicial Member P. K BANSAL ) Vice President Dated:19/06/2017 * Singh Qmi

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