Rana Ceramics Products India (P) Ltd., ... vs Department Of Income Tax
- CitationITA No. 5545/Del/2010
Ratio decidendi
The rule this decision rests on
The Revenue's appeal is not maintainable where the tax effect of the grounds raised is below the monetary limit prescribed by CBDT Instruction No. 5/2014 dated 10.07.2014; that instruction, having been given statutory force by section 268A of the Income-tax Act, 1961, bars the Revenue from preferring such an appeal to the Tribunal, and it applies equally to appeals pending on the date of the instruction. Where the assessee does not pursue its cross-objection, the cross-objection is dismissed along with the Revenue's appeal, the assessee having withdrawn it in view of the non-maintainability of the appeal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ITA No. 5545/Del/2010 Assessment Year: 2006-07 Assistant CIT, Vs. Rana Ceramics Products India Circle-2, (P) Ltd., Meerut Road, Muzaffarnagar. Muzaffarnagar. (PAN: AACCR9284J) (Appellant) (Respondent)
Cross Objection No. 21/Del/2011 Assessment Year: 2006-07 Rana Ceramics Products India Vs. Assistant CIT, (P) Ltd., Meerut Road, Circle-2, Muzaffarnagar. Muzaffarnagar. (PAN: AACCR9284J) (Appellant) (Respondent)
Department by: Shri Vikram Sohay, Sr. DR Assessee by: Shri Ankit Gupta, Adv.
Date of hearing : 27.04.2015 Date of pronouncement: 01:05.2015
ORDER
PER I.C. SUDHIR: JUDICIAL MEMBER At the outset of hearing, the Learned AR pointed out that the tax
effect of the grounds raised in the appeal preferred by the Revenue is below
Rs.4 lacs, hence, as per the latest CBDT Instruction No. 5/2014 dated
10.07.2014, the present appeal is not maintainable. 2
2. The Senior DR did not object the above submissions of the Learned
AR about the tax effect having below Rs.4 lacs in the grounds of the appeal.
He has, however, placed reliance on the assessment order.
3. In the present appeal, the Revenue has questioned deletion of addition
of Rs.10,11,396 in total by the Learned CIT(Appeals). The tax effect thereof
is below Rs.4 lacs. As per 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.
C.O. No. 21/Del/2011:
3. The Learned AR pointed out further that the assessee does not wish to
pursue cross objection due to smallness of amount added under sec. 40A(3) 3
of the Income-tax Act, 1961, keeping it in view that the appeal preferred by
the Revenue is not maintainable due to low tax effect.
4. In result, both the appeal and cross objection are dismissed.
Decision pronounced in the open court on 01.05.2015
Sd/- Sd/-
( J.S.REDDY ) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 01 /05/2015 Mohan Lal
Copy forwarded to: 1) Appellant 2) Respondent 3) CIT 4) CIT(Appeals) 5) DR:ITAT ASSISTANT REGISTRAR
Date Draft dictated on computer 29 .04.2015 Draft placed before author 29.04.2015
Draft proposed & placed before the second 01.05.2015 member Draft discussed/approved by Second Member. Approved Draft comes to the Sr.PS/PS 05.05.2015 Kept for pronouncement on 01.05.2015 File sent to the Bench Clerk 05.05.2015 Date on which file goes to the AR Date on which file goes to the Head Clerk.
Date of dispatch of Order.
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