Belaben Hitenbhai Shah,, Ahmedabad vs Department Of Income Tax

Asst. Commissioner of Income-tax, Circle-11, Ahmedabad Appellant

Vs.

Smt. Belaben Hitenbhai Shah Kalyan Kunj, 13-B, Jain Society, Ellisbridge, Ahmadabad Respondent

PAN: AELPS4983B

अपीलाथȸ कȧ ओर से /By Appellant : Shri Roopchand, Sr. D.R. ू×यथȸ कȧ ओर से/By Respondent : Monil Shah, A.R. सुनवाई कȧ तारȣख/Date of Hearing : 28.01.2015 घोषणा कȧ तारȣख/Date of Pronouncement : 28.01.2015

ORDER

PER SHAILENDRA KUMAR YADAV, J.M:

This appeal has been filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-XVI, Ahmedabad, dated November 25th, 2013 for A.Y. 2005-06 on the following grounds:

I.T.A. No. 163/Ahd/14 A.Y. 05-06 [ACIT vs. Smt. Be labe n H. Shah] Page 2

"(1) The Ld. CIT(A) has erred in law and on facts in quashed the order u/s 143(3) r.w.s. 147 of the it Act passed by the Assessing Officer.

(2) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.5,35,555/- on account of unexplained income without properly appreciating the facts of the case and the findings brought out by the AO."

2. In this case, the revenue has come in appeal on account of addition deleted by CIT(A) and made by the Assessing Officer. The Assessment Year in the appeal is 2005-06. The tax effect on the deleted additions is less than the threshold limit, i.e. Rs.4 lacs. The appeal has been filed on 17.01.2014.

3. We find that the tax effect in this case is less than Rs.4 lacs. As per the recent CBDT Instruction No.5/2014 dated 10.07.2014, the revenue is not permitted to file appeal before the Tribunal if the tax effect is less than Rs. 4 lavd. We find support from the decision of Hon'ble Supreme Court dated 25.03.2011 in ITA Nos. 3 to 5/2010. Ld. Departmental Representative for the revenue submitted that Instruction no. 5/2014 is not applicable for the appeals filed prior to issue of the said instructions. It is also submitted that the Full Bench of Punjab & Haryana High Court in the case of CIT Vs. Virendra Construction Co., 239 CTR 1, held that revised monetary limits are not applicable to the pending appeals, and it is in favour of the revenue.

4. We have heard both the sides and gone through the material available on record. Instruction No.5/2014 dated I.T.A. No. 163/Ahd/14 A.Y. 05-06 [ACIT vs. Smt. Be labe n H. Shah] Page 3

10.07.2014 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. Monetary limit for filing the appeal before the Tribunal is Rs. 4 lacs; before Hon'ble High Court Rs. 10 lacs and before Hon'ble Supreme Court Rs. 25 lacs. 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 ITA No. 89/1999 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 Hon'ble Delhi High Court in the case of CIT Vs. Delhi Race Club Ltd. in ITA No. 128/2008 dated 03.03.2011 has held as under:-

"The tax effect involved in the present appeal is Rs. 4,65,860/-. As per the recent guidelines of the CBDT, appeal in those cases where the tax effect is less than Rs. 10.00 lacs, are not to be entertained.

This court in the case of CIT, Delhi-III Vs. M/s P.S. Jain & Co., being ITA No. 179/1991 decided on 2nd August, I.T.A. No. 163/Ahd/14 A.Y. 05-06 [ACIT vs. Smt. Be labe n H. Shah] Page 4

2010 has taken a view that such circular would also apply to pending cases."

4.2 In view of the above, Instruction no. 5/2014 dated 10.07.2014 will apply to all pending appeals. 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.4 lacs. Accordingly, it is held that appeal filed by the revenue is not maintainable.

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

Pronounced in the open Court on this the 28th day of January, 2015.

Sd/- Sd/- (N. S. SAINI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER

S.K.SINHA

आदे श कȧ ूितिलǒप अमेǒषत / Copy of Order Forwarded to:-

1. राजःव / Revenue

2. आवेदक / Assessee

3. संबिं धत आयकर आयुƠ / Concerned CIT

4. आयकर आयुƠ- अपील / CIT (A)

5. ǒवभागीय ूितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड[ फाइल / Guard file.

By order/आदे श से,

उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद ।