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Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI
Before: SHRI H.S. SIDHU & SHRI O.P. KANT
This appeal by the Department and the Cross Objection by the Assessee is directed against the Order dated 15.1.2013 of Ld. CIT(A)-XV, New Delhi pertaining to assessment year 2004-05.
At the time of hearing, Ld. Counsel of the Assessee, Sh. V. Raja Kumar, Advocate has submitted 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 clarity, he submitted the following Computation of Disputed Tax in this case.
Addtion u/s. 68 Rs. 27,95,400/- Tax@30% on Rs. 27,95,400 Rs. 8,38,620/- Education Cess @2% of above Rs. 55,908/- Higher Eduation Cess @1 of above Rs. 27,954/- Total Taxes Rs. 9,22,482/- ============ 3. Ld. DR, Shri T. Vasanthan, did not controvert the submissions of the Ld. Authorised Representative for the assessee, but he relied upon the order of the Assessing Officer.
We have heard both the parties and perused the material on record. 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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directions issued to the income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/ not pressed the present Appeal, in view of the aforesaid instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs,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.
As regards the Cross Objection filed by the Assessee is concerned, the same has been withdrawn by the Ld. Counsel for the Assessee during the hearing. Hence, the Cross Objection is dismissed as withdrawn.
In the result, Appeal filed by the Revenue as well as Cross Objection filed by the Assessee stand dismissed.
Order pronounced in the Open Court on 16/12/2015.