Raj Kumar , New Delhi vs Department Of Income Tax

Income Tax Appellate Tribunal23 February 2015

CitationITA NO.1644/Del/2013

Ratio decidendi

The rule this decision rests on

The Tribunal dismissed the revenue's appeal in limine because the total tax effect was below the monetary limit fixed by the CBDT instruction, and it held that the instruction applies to references already pending before the Tribunal and not only to fresh appeals. Its reasoning rests on following the jurisdictional High Court's decision in CIT v. P.S. Jain & Co. Where the tax effect involved in an appeal by the revenue is below the monetary limit prescribed by the CBDT instruction, the Tribunal will not proceed to the merits and will dismiss the appeal in limine. Such a monetary-limit instruction applies to appeals already pending and undecided before the Tribunal, not only to appeals filed after the instruction issued.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

ITA NO.1644/Del/2013Asstt.Year: 2009-10IN THE INCOME TAX APPELLATE TRIBUNALDELHI BENCH 'F'NEW DELHIBEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBERANDSHRI CHANDRAMOHAN GARG, JUDICIAL MEMBERITA NO. 1644/DEL/2013ASSTT.YEAR: 2009-10Income Tax Officer, vs Raj KumarWard-36(4), B-29, G.D.F. ColonyMayur Vihar, Phase -IIINew Delhi DelhiANYPK8149H(Appellant) (Respondent)Appellant by: Shri Vikram Sahay, Sr. DRRespondent by: Shri Rajesh Manna, Adv. & Sh. Ramanand , Adv.ORDERPER C.M. GARG, JUDICIAL MEMBER

This appeal has been preferred by the revenue against the order of the

CIT(A)- XXVII, New Delhi dated 26/12/2012 in Appeal No.167/11-12 for AY

2009-10.

2. We have heard arguments of both the sides and carefully perused the

relevant material placed on record. Ld. Counsel of the assessee placed

calculation of tax effect and submitted that total tax effect in this case is below

1 ITA NO.1644/Del/2013 Asstt.Year: 2009-10

Rs. 4,00,000/- and in view of the recent Instruction No.5/2014 issued by CBDT

on 10.7.2014 revising the limitation for filing of appeal before ITAT fixing the

tax effect limit at Rs. 4 lakh, the appeal of the revenue is not maintainable and

liable to be dismissed in limine. On specific query from the Bench, ld. DR

fairly accepted that total tax effect in this appeal is less than Rs. 4 lakh.

3. Ld. Counsel of the assessee placing reliance on the recent decision of CIT

vs M/s P.S. Jain and Co. Dated 2.8.2010 in ITR 179/1991 submitted that the

recent Board Instruction revising the monetary limit to Rs. 4 lakh for filing the

appeal before the ITAT on income tax matters is very much applicable to the

old references which are still pending undecided before the Tribunal. Ld. DR

fairly accepted that the Board Instruction No. 5/2014 issued by CBDT on

10.7.2014 is applicable to the present case.

4. In view of above noted submissions of both the sides, we are inclined to

hold that there is no justification to proceed with the cases having tax effect of

less than Rs. 4 lakh. In view of above, respectfully following the decision of

Hon'ble Jurisdictional High Court of Delhi in the case of CIT vs M/s P.S. Jain

& Co. (supra), we hold that this being a low tax effect case, the appeal of the

revenue deserves to be dismissed and we dismiss the same in limine without

going into merits.

2 ITA NO.1644/Del/2013 Asstt.Year: 2009-10

5. In the result, the appeal of the revenue is dismissed.

Order pronounced in the open court on 23.02.2015.

Sd/- Sd/-

( B.C.MEENA ) (CHANDRAMOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER

DT. 23rd FEBRUARY 2015 'GS'

Copy forwarded to:-

1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR

By Order

Asstt. Registrar

This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.

Research this judgment with Miss Lucy

Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.

Try Miss Lucy free