Sarvesh Agarwal, , Uttar Pradesh vs Assessee
- CitationITA no. 2978/Del/2010
Ratio decidendi
The rule this decision rests on
The Tribunal holds that a departmental appeal whose tax effect is below the monetary limit prescribed by the CBDT instruction is not maintainable before the Appellate Tribunal, and that the instruction applies to pending appeals as well as those filed after its issue. Following the jurisdictional High Court's decision, the Tribunal treats the revised monetary limit as binding on the department and as governing the maintainability of appeals already pending before it. Where a departmental appeal is not maintainable on account of tax effect, a cross-objection filed by the assessee against that appeal falls with it and is dismissed as infructuous.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ITA no. 2978/Del/2010 Asstt. Yr: 2002-03 Income-tax Officer-2, Vs. Smt. Sarvesh Agarwal, Najibabad. W/o Shri Santosh Agarwal, Station Road, Nagina Distt. Bijnor (UP)
PAN: AEDPA 5693 E AND
C.O. No. 241/Del/2010 ( In ITA no. 2978/Del/2010 ) Asstt. Yr: 2002-03 Smt. Sarvesh Agarwal, Vs. Income-tax Officer-2, W/o Shri Santosh Agarwal, Najibabad. Station Road, Nagina Distt. Bijnor (UP)
( Appellant ) (Respondent)
Revenue by : Shri B.R.R. Kumar Sr. DR Assessee by Shri Anil Sharma Adv.
Date of hearing: 21/05/2015. Date of order : 22/05/2015.
ORDER
PER S.V. MEHROTRA, A.M..:
The appeal by the revenue and the cross-objection by the assessee have been preferred against the order of CIT(A) relating to A.Y. 2002-03.
2. The learned counsel for the assessee at the very outset contended that the tax effect involved in the present appeals 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 departments.
3. On the other hand, the learned DR contended that the appeal should not be dismissed on account of tax effect only.
2 4. We have heard rival submissions of the parties 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 appeals, involving tax effect below Rs. 4 lacs, are not maintainable before the ITAT. 4.1. 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. 4.2. Admittedly the tax effect involved in the present appeals 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 are not maintainable.
4.3. Since the departmental appeal, on account of tax effect, is not maintainable, the cross- objection, filed by the assessee, has become infructuous and is dismissed accordingly.
5. In the result, departmental appeal and assessee's cross-objections are dismissed. Order pronounced in open court on 22/05/2015..
Sd/- Sd/- (A.T. VARKEY. ) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 22/05/2015.
*MP* Copy of order to: 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, New Delhi.
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