DCIT, TDS, NOIDA vs. M/S ATS INFRASTRUCTURE LTD., NOIDA

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ITA 5598/DEL/2013Status: DisposedITAT Delhi04 December 2015AY 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 appeal filed by the revenue was not maintainable as the tax effect was less than the prescribed monetary limit of Rs. 3 lakhs. Therefore, the appeal was dismissed without considering the merits of the case.

What were the facts?

The revenue filed an appeal before the ITAT against an order that deleted the AO's order under Section 201(1)/201(1A). The assessee pointed out that the tax effect was less than Rs. 3 lakhs, which is below the monetary limit for appeals.

What were the issues?

Whether an appeal filed by the revenue is maintainable before the ITAT when the tax effect is below the prescribed monetary limit as per departmental instructions.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI

Before: SHRI J.S. REDDY & SHRI A.T. VARKEY

For Appellant: Ms. Varsha Kapoor, CA
For Respondent: Shri K.K. Jaiswal, Senior DR
Hearing: 30.11.2015Pronounced: 04.12.2015

O R D E R PER A.T. VARKEY, JUDICIAL MEMBER :

This appeal filed by the revenue emanates from the order of the CIT (Appeals), Noida dated 29.07.2013 for the assessment year 2003-04. 2. In this case, the revenue has come in appeal on account of deleting the order u/s 201(1)/201(1A) of the Income Tax Act, 9161 (hereinafter ‘the Act’) passed by the AO ignoring the fact of the case by simply relying upon the order of the Ld. CIT (A), Meerut in the case of the recipient of loan from the assessee company, namely, M/s. ATS Promoters and Builders Pvt. Ltd. and the ld. CIT

(A) has not gone into the facts of the case as discussed by the AO in his order u/s 201(1)/201(1A) of the Act.

3.

At the outset, ld. counsel for the assessee submitted that the tax effect in this case is less than Rs.3.00 lakhs. This position is admitted by the ld. DR. Therefore, as per the Instruction No. 3/2011 dated 09.02.2011, the revenue is not permitted to file appeal before the Tribunal if the tax effect is less than Rs.3.00 lakhs. The decision of Hon’ble Supreme Court dated 25.03.2011 in to 5/2010 is relied upon in this regard. The Assessment Year in the appeal is 2003-04. The appeal has been filed on 17.10.2013.

4.

We have heard both the sides and gone through the material available on record. Instruction No.3/2011 dated 09.02.2011 has revised the monetary limit for filing the appeal by the department before Income-tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. As per the said circular, monetary limit for filing the appeal before the Tribunal is Rs.3.00 lakhs; before Hon’ble High Court Rs. 10.00 lakhs and before Hon’ble Supreme Court Rs. 25.00 lakh. Hon’ble Supreme Court in the order dated 25.03.2011 referred to above has held as under:-

“It is stated that the tax impact in the present cases is less than Rs.10.00 lacs. The Department has recently issued an instruction bearing no. 3/2011 dated 09.02.2011, which is identical to its earlier instruction bearing no. 5/2008 dated 15.05.2008 except that in so far as the High Court is concerned, the monetary limit in respect of appeals where the questions of law raised need not to be answered, has been raised from Rs. 4.00 lacs to Rs. 10.00 lacs. The Division Bench of this Court in decided on 28.01.2011 has already held that the instruction bearing no. 5/2008 dated 15.05.2008 would apply even to the old pending references and appeals. This principle would thus naturally equally apply to the instant instruction bearing no.3/2011 dated 09.02.2011, as well. The tax effect being less than Rs.10.00 lacs, the question of law does not require to be answered. The appeals are disposed of accordingly.”

4.1 In view of the above, respectfully following the precedent, it is held that the appeal is not maintainable in the instant case as the tax effect is less than Rs.3 lakhs. Accordingly, it is held that appeal filed by the revenue is not maintainable.

5.

In the result, appeal filed by the department is dismissed without going into the merits.

Order pronounced in open court on this day of 4th December, 2015.

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