Afsha Talwar, New Delhi vs Department Of Income Tax
- CitationI.T.A .No.-3819/Del/2013
Ratio decidendi
The rule this decision rests on
Where the tax effect in a departmental appeal is below the monetary limit fixed by the CBDT instruction in force, the Tribunal will not entertain the appeal, and that limit as revised by Instruction No. 5/2014 applies to appeals pending on the date of the revision, not only to those filed afterwards.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ACIT vs Afsha talwar, Circle-23(1), New Delhi. 59, Nehru Apartments, Outer Ring Road, Kalkaji, New Delhi-110019. PAN-ABZPT6201E (APPELLANT) (RESPONDENT)
Appellant by Ms.Y.Kakkar, DR Respondent by Sh. Deepak Kapoor, Adv.
Date of Hearing 21.05.2015 Date of Pronouncement 02.06.2015 ORDER PER DIVA SINGH, JM
By the present appeal, the Revenue assails the correctness of the order dated 13.03.2013 of CIT(A)-XI, New Delhi pertaining to 2008-09 assessment year.
2. However, at the time of hearing, an adjournment petition was moved on behalf of the Revenue seeking time. The Ld. AR appearing in response to the notice issued by the Registry on behalf of the assessee filed a computation sheet submitted that in the present appeal, the tax effect involved is Rs.3,66,745/-. In view of this fact relying upon CBDT Instruction No.-5/2014 dated 10.07.2015, it was submitted that the appeal of the Revenue deserves to be dismissed on the grounds of tax effect. Considering the petition moved on behalf of the CIT DR seeking time, the ld. Sr. DR was required to respond on the tax effect involved. The Ld. Sr. DR stated that she is not authorized to argue the present appeal, however in view of the fact where pleadings have been made for dismissing the appeal on the grounds of the tax effect, it was her submission that the appeal has been filed on 11.12.2013 by the Revenue when the limit was Rs.3 lakh. Accordingly it was her
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submission that the appeal should be decided on the basis of the tax effect at the relevant point of time and not on the basis of the latest circular of the CBDT.
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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