ITO- 1(2), HALDWANI vs. M/S. POLYTEC, HALDWANI

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ITA 5024/DEL/2015Status: DisposedITAT Delhi11 December 2015AY 2012-133 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 Revenue's appeal was not maintainable as it violated CBDT instructions regarding the pecuniary limit for appeals to the ITAT. These instructions have statutory force under Section 268A of the Income-tax Act.

What were the facts?

The Revenue appealed the CIT(Appeals) order concerning the treatment of sales of scrap as profit from manufacturing. The assessee raised a preliminary objection regarding the maintainability of the appeal.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the ITAT given the tax effect below the prescribed pecuniary limit as per CBDT instructions.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC-2” NEW DELHI

Before: SHRI I.C. SUDHIR: HON’BLE

For Appellant: Shri Saubhagya Agarwal, Adv
For Respondent: Shri Gaurav Dudes, Sr. DR
Hearing: 15.09.2015

The Revenue has questioned First Appellate Order on the ground that the Learned CIT(Appeals) has erred in holding that sales of scrap was profit and gains derived from manufacturing process.

2.

At the outset of hearing, the Learned AR raised a preliminary

objection against the maintainability of the present appeal having tax effect below Rs.4 lacs as per the CBDT Instruction No. 5 dated 10.7.2014, the Revenue is not supposed to prefer appeal having tax effect below Rs. 4 lacs against the First Appellate Order before the ITAT. This instruction regarding

the pecuniary limit for preferring the appeal before the ITAT by the Revenue has now statutory force under sec. 268A of the Income-tax Act, 1961. Thus,

present appeal has been preferred by the Revenue in violation of the said instruction as the said instruction is also applicable in the pending appeals as per the decisions of Hon’ble jurisdictional Delhi High Court in the case of CIT vs. M/s. P.S. Jain & Co. in ITA No. 179/1991 dated 02.08.2010 and in the case of CIT vs. Delhi Race Club Ltd. – order dated 03.03.2011.The present appeal is thus not maintainable and it is dismissed as such.

3.

In result, the appeal is allowed. Order pronounced in the open court on 11.12.2015. Dated: 11 /12/2015 Mohan Lal

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