Ram Vati, New Delhi vs Department Of Income Tax

ITO, Ward 36 (4), vs. Mrs. Ram Vati, New Delhi. Village Dallu Pura, Delhi - 110 096.

(PAN : AGTPR4803M)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : None REVENUE by : Shri Vikram Sahay, Senior DR

ORDER

PER B.C. MEENA, ACCOUNTANT MEMBER :

This appeal filed by the revenue emanates from the order of the CIT (Appeals)-

XXVII, Delhi dated 20.12.2012 for the assessment year 2008-09.

2. In this case, the revenue has come in appeal on account of deleting the addition

made by the Assessing Officer of Rs.12,00,000/- on account of unexplained cash

deposits in bank account by accepting the explanation of assessee that cash deposited

out of amount gifted by sons in cash. The assessee filed return of income on

17.09.2008 declaring income of Rs.1,95,480/-. The AO assessed the income at

Rs.13,34,000/-. The Assessment Year in the appeal is 2008-09. The tax effect on the

deleted addition is less than the threshold limit, i.e. Rs.4 lacs. The appeal has been

filed on 21.03.2013.

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ITA NO.1643/Del/2013

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.4.00 lakh. We find

support from the decision of Hon'ble Supreme Court dated 25.03.2011 in ITA Nos. 3

to 5/2010. Ld. DR 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 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.4.00 lakh; before Hon'ble High Court Rs. 10.00 lakh and

before Hon'ble Supreme Court Rs. 25.00 lakh. 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.

3 ITA NO.1643/Del/2013

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, 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 department is dismissed without going into the

merits.

Order pronounced in open court on this 19th day of February, 2015 after conclusion of the hearing.

Sd/- sd/- (C.M. GARG) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated the 19th day of February, 2015 TS 4 ITA NO.1643/Del/2013

Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A)-XXVII, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.