Delhi Automobiles Ltd., New Delhi vs Department Of Income Tax

ACIT, Circle 10(1) Vs. M/s. Delhi Automobiles Ltd. New Delhi. F-2/7, Okhla Industrial Phase-1, New Delhi.

(Appellant) (Respondent)

Date of Hearing : 29.06.2015 Date of Pronouncement : 30.06.2015

Assessee by : Sri P.D. Taneja, Sr. D.R. Respondent by: Sri Aloke Periwal, CA

ORDER

1. This appeal filed by the assessee is directed against the order of CIT(A)-

XIII, New Delhi passed on 13.01.2014 for the assessment year 2010-11 wherein

the assessee has raised the following grounds of appeal:-

"1. Whether the Ld. CIT(A) under the facts and circumstances of the case and in law was correct in allowing the amount of Rs.63,35,118/- claimed by the assessee on account of business expenditure incurred. Whereas no business activity taken by the assessee during the year under consideration.

2. Whereas, the assessee was failed to substantiate the expenses, no expenses were paid during the year."

2. At the outset of hearing, the Ld. AR raised a preliminary objection

regarding the maintainability of present appeal preferred by the Revenue having

tax effect below Rs.4.00 lacs. He furnished calculation of the tax effect with copy

to the other said at Rs.69,284/- after giving effect to the first appellate order. He ITA No 1999/DEL/14 2

submitted that income assessed by the AO was Rs.2,90,013/-, tax effect of which

at the rate of 30% comes to Rs.87,004/- only.

3. The Ld. DR did not dispute the tax effect of the appeal as pointed out by

the Ld. AR. He however, placed reliance on the assessment order.

4. After considering the above submission and keeping in view the latest

CBDT Instruction No. 5/2014 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.

5. In result, the appeal is dismissed.

Order pronounced in the open Court on 30.06.2015

Sd/-

(I.C. SUDHIR) JUDICIAL MEMBER Dated: 30.06. 2015.

ITA No 1999/DEL/14 3

Copy forwarded to

1. Appellant

2. Respondent

3. CIT

4. CIT(A)

5. DR Asst. Registrar, ITAT, New Delhi