Aditya Ajay Share Brokers (P) Ltd., New ... vs Department Of Income Tax

DCIT vs Aditya Ajay Share Brokers (P.) Ltd., Circle-1(1), Room No.-390, 11A/10, 2nd Floor, Old Rajender C.R. Building, I.P.Estate, Nagar, New Delhi-110060. New Delhi-110002. PAN-AABCE3458Q (APPELLANT) (RESPONDENT)

Appellant by Ms.Y.Kakkar, DR Respondent by Sh.Ashwani Narang, CA

Date of Hearing 21.05.2015 Date of Pronouncement 02.06.2015

ORDER

PER DIVA SINGH, JM

This is an appeal filed by the Revenue assailing the correctness of the order dated 01.11.2012 of CIT(A)-IV, New Delhi pertaining to 2008-09 assessment year.

2. However, right at the outset, the ld. AR appearing on behalf of the assessee filed a computation sheet stating that the tax effect involved is only Rs.3,07,970/- which is below the tax limit as per the latest CBDT Instruction No.-5/2-14 dated 10.07.2014 which has fixed the monetary limit of Rs.4 lakhs. On account of this fact, it was pleaded that the present appeal filed by the Revenue is not maintainable. The Ld. Sr. DR inviting attention to the fact that the appeal was filed on 12.08.2013 submitted that the tax effect limit at the relevant point of time was

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Rs. 3 lacs as such the appeal at the time it was filed was maintainable as such it was her submission that it should be decided on merit.

3. We have heard rival submissions and perused the material available on record. Admittedly as per recent CBDT Instruction No. 5/2014 dated 10/7/2014, the monetary limit for filing appeal by the department before the ITAT has been revised to Rs.4 lacs. Considering the same, it is also seen that the co-ordinate Benches at Delhi consistently have held that the departmental appeals, involving tax effect below Rs. 4 lacs, are not maintainable before the ITAT. The view has been taken following the decision of the Hon'ble Jurisdictional Delhi High Court in the case of CIT Vs. Delhi Race Club Ltd. Reference may also be made to the order dated 3/3/2011 where by following the earlier order dated 2/8/2010 in ITA No. 179/1991 in the case of CIT Delhi-IIIVs. M/s P.S. Jain & Co., it has held that such instruction/circular would also be applicable to pending cases. Reliance has also been placed on 319 ITR 347 (Delhi) and 335/ITR 591(Delhi). In the facts of the present case admittedly the tax effect involved is below Rs.4 lakhs which has not been disputed by the Ld. Sr. DR. Therefore, noting the objections of the Ld. Sr. DR, we considering the revised instruction of the CBDT, referred to above, and following the decisions of the Jurisdictional High Court in the case of Delhi Race Club Ltd., etc. supra, we hold that the departmental appeal is not maintainable.

4. Respectfully following the decision of the Jurisdictional High Court in view of the above factual position we hold that Instruction No.5/2014 dated 10/07/2014 will apply to the present appeal. As a result, the department's appeal is dismissed as not maintainable.

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

The order is pronounced in the open court on 02nd of June, 2015.

Sd/- Sd/- (J. S. REDDY) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:02/06/2015 *Amit Kumar*

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Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

ASSISTANT REGISTRAR ITAT NEW DELHI

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