DCIT, NEW DELHI vs. M/S. J.J. ENTERPRISES, UTTAR PRADESH

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ITA 1747/DEL/2014Status: DisposedITAT Delhi04 May 2016AY 2009-104 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 not maintainable due to the low tax effect, as per CBDT Circular No. 21/2015. The Department should have withdrawn or not pressed the appeal.

What were the facts?

The Department appealed the deletion of an addition of Rs. 16,86,225/- made by the AO on account of sale of scrap. The tax effect in the Revenue's appeal was less than Rs. 10,00,000/-.

What were the issues?

Maintainability of the appeal due to low tax effect and the applicability of CBDT circulars to pending appeals.

Which sections of the Income-tax Act were involved?

Section 153A

AI-generated summary — verify with the full judgment below

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

Before: SHRI H.S. SIDHU & SHRI J.S. REDDY

For Appellant: Ms. Sulekha Verma, CIT(DR)

This appeal by the Department is directed against the Order dated 30.1.2014 of Ld. CIT(A)-III, New Delhi pertaining to assessment year 2009-10 on the following grounds:- “

1. On the facts and in the circumstances of the case, the Ld. CIT(A) is erred in deleting the addition of Rs. 16,86,225/- made by the AO on account of sale of scrap.

2. On the facts and in the circumstances of the case, the CIT(A) erred in violating the provisions of Rule 46A of the I.T. Rule, 1962 by accepting the fresh evidences without according an opportunity to the AO for consideration of same.

3. On the facts and in the circumstances of the case, the CIT(A) is erred in holding that no addition can be made in the search assessment under the provisions of section 153A when no incriminating material relating to the issue is found.

4. The order of the CIT(A) is erroneous and is not tenable on facts and in law.

5. The appellant craves leave to add, alter or amend any / all of the grounds of appeal before or during the course of the hearing of the appeal.

2.

We find that Revenue in the Grounds of Appeal

before the Tribunal has challenged the deletion of addition of Rs. 16,86225 vide ground no. 1, as aforesaid.

3. 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 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.”

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 04/05/2016.

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