Infiniti Power Pvt. Ltd., New Delhi vs Assessee
- CitationITA No. 2648/Del/2012
Ratio decidendi
The rule this decision rests on
The departmental appeal is not maintainable before the Tribunal where the tax effect involved is below the monetary limit prescribed by the CBDT instruction, and such an instruction, being binding on the department, applies to appeals pending on the date it was issued and not only to those filed afterwards, as held by the jurisdictional High Court in the Delhi Race Club case relied upon. Once the departmental appeal is dismissed as not maintainable on account of the tax effect, a cross-objection filed by the assessee against that appeal has no subsisting subject-matter and is accordingly rejected as infructuous.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ITA No. 2648/Del/2012 Asstt. Yr: 2004-05 DCIT, circle 11(1), Vs. M/s Infinity Power Pvt. Ltd., New Delhi. B-138, Mohammadpur, Bikaji Cama Place, New Delhi. PAN: AAACI 3802 K AND
C.O. No. 275/Del/2012 (ITA No. 2648/Del/2012 ) Asstt. Yr: 2004-05 M/s Infinity Power Pvt. Ltd., Vs. DCIT, circle 11(1), B-138, Mohammadpur, New Delhi. Bikaji Cama Place, New Delhi.
( Appellant ) ( Respondent )
Department by : Shri T. Vasanthan Sr. DR Assessee by : Shri Venktesh Chaurasia CA
Date of hearing : 12-03-2015 Date of order : 18-03-2015.
ORDER
PER S.V. MEHROTRA, A.M::
The appeal by the department and the cross-objection, by the assessee, are
directed against CIT(A)'s order dated 12-3-2012 relating to A.Y. 2004-05. Both 2
the matters were heard together and are being disposed of by a consolidated order
for the sake of convenience.
2. The learned counsel for the assessee at the very out set contended that the tax
effect involved in the departmental appeal is below Rs. 4 lacs and, therefore, the appeal
filed by the revenue is not maintainable in view of recent CBDT instruction, which is
binding on the department.
3. On the other hand, the learned DR contended that the appeal should not be
dismissed on account of tax effect only.
4. We have heard rival submissions and perused the entire material on record. 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. Thus, the
departmental appeal, involving tax effect below Rs. 4 lacs, is not maintainable before
the ITAT. The Hon'ble Jurisdictional Delhi High Court in the case of CIT vs. Delhi Race
Club Ltd. in ITA No. 128/2008, order dated 03.03.2011, by following the earlier order
dated 02.08.2010 in ITA No. 179/1991 in the case of CIT Delhi-III vs. M/s P.S. Jain &
Co., has held that such instruction/ circular would also be applicable to pending cases.
4.1. Admittedly the tax effect involved in the present appeal is below Rs. 4 lakhs. Therefore, in view of the revised instruction of the CBDT, referred to above, and the
Hon'ble Jurisdictional High Court's decision in the case of Delhi Race Club Ltd., supra,
the departmental appeal is not maintainable and is liable to be dismissed as such. We
order accordingly.
3
5. Since we have dismissed the revenue's being not maintainable on account of tax
effect, the cross objection filed by the assessee has become infructuous and stands
rejected accordingly.
6. In the result, departmental appeal as well as the cross objection filed by the assessee stand dismissed.
Order pronounced in open court on 18-03-2015.
Sd/- Sd/- (C.M. GARG) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-03-2015. MP Copy to : 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR
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