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Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI
Before: SHRI H.S. SIDHU & SHRI J.S. REDDY
This appeal by the Department is directed against the Order dated 05.8.2013 of Ld. CIT(A)-XV, New Delhi pertaining to assessment year 2005-06 on the following grounds:- “
1. Whether Ld. CIT(A) was correct on facts and circumstances of the case and in law in deleting the penalty of Rs. 6,69,586/- levied by AO on account of furnishing inaccurate particulars of income?
2. Whether Ld. CIT(A) was correct on facts and circumstances of the case and in law in not considering the decision of the Hon’ble Apex Court in the case of M/s Liberty India Ltd. 183 Taxman 349 wherein the Apex Court has defined the word ‘derived’ and ‘attributable’ relevant in this case, and allowing relief by relying on decision of Hon’ble Special Bench of ITAT, Indore in the case of M/s Maral Overseas (ITA No. 777/204 and 294/IND.2006)?
3. The appellant craves leave, to add, alter or amend any ground of appeal raised above at the time of the hearing.”
We find that Revenue in the Grounds of Appeal
before the Tribunal has challenged the deletion of penalty of Rs. 6,69,586/- 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.
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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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.”
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.
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 15/03/2016.