Sharni Properties Pvt. Ltd.,, New Delhi vs Department Of Income Tax

Income Tax Officer, Vs. M/s Sharni Sharni Properties Pvt.Ltd., Ward- Ward-8(1), 22, Pusa Road, New Delhi. New Delhi - 110 008. PAN : AAGCS8799F. (Appellant) (Respondent)

Appellant by : Shri B.R.R. Kumar, Sr.DR. Respondent by : Shri Aman Goel, CA.

Date of hearing : 05.03.2015 Date of pronouncement : 05.03.2015

ORDER

PER GEORGE GEORGE K, JM :

This appeal at the instance of the Revenue is directed against the order of learned CIT(A)-XI, New Delhi dated 12th July, 2012. The relevant assessment year is 2005-06.

2. At the time of hearing, it was noticed that the tax effect was below the prescribed monetary limit of Rs.4 lakhs. Instruction No.5/14 dated 10.07.2014 mandates that the tax effect should be above `4 lakhs in a particular case, when revenue files an appeal to the ITAT, (unless the case come within the ambit of exception circumstance/situation mentioned in the circular). The recent order of the Delhi Bench of the Tribunal in the case of DCIT Vs. Shri Chetan Prakash Mittal (ITA No.3323/Del/2010 dated 13.11.2014) had held that Instruction No.5/14 is applicable to pending cases. The relevant finding of the Tribunal reads as follows:-

2 ITA-5183/Del/2012

(Para 5)

"We have heard rival submissions and perused the material on record. The Tribunal in the case of Deputy Commr. of Income Tax Vs. Sushila Saraogi (supra) after considering the precedents on the subject held instruction No.5/14 issued by the CBDT on 10.07.2014 is applicable to the pending appeals. The Tribunal followed the dictum laid down the judgments of the various High Courts including including the two judgments of the Hon'ble Jurisdictional High Court in the case of CIT Vs. M/s P.S. Jain & Co. in ITA No.179/1991 dated 2.8.2010 and in the case of Commissioner of Income Tax vs. Delhi Race Club Ltd. dated 3.3.2011. In view of the order of th the e Tribunal in the case of Deputy Commissioner of Income Tax vs. Sushila Saraogi which have elaborately considered the identical issue, we hold that instruction No.5/2014 issued by the CBDT on 10.07.2014 is applicable to the pending appeals. In the instant case, the tax effect being below Rs.4 lacs, without going into the issue on merit, we dismiss the appeal of the revenue in liminee. It is to be mentioned that Ld. DR was unable to point out any exceptional circumstances/situation (mentioned in board instruction instruction No.5/2014) for filing an appeal despite the monetary limit being below the prescribed limit."

3. In view of the coordinate Bench order of the Tribunal (Supra), we hold that instruction no.5/2014 issued by the CBDT on 10.07.2014 is applicable to the pending appeals. In the instant case, since the tax effect is below Rs.4 lakhs, without going into the issue on merit, we dismiss the appeal of the Revenue in limine. Further it is to be mentioned that Ld. DR was unable to point out any exceptional circumstances/situation (mentioned in board instruction No.5/14) for filing an appeal, despite the tax effect being below the prescribed limit.

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

Decision pronounced in the open Court on 5th March, 2015.

Sd/- Sd/- (G.D. AGRAWAL) (GEORGE GEORGE K) VICE PRESIDENT JUDICIAL MEMBER

VK. 3 ITA-5183/Del/2012

Copy forwarded to: -

1. Appellant : Income Tax Officer, Ward- Ward-8(1), New Delhi.

2. Respondent : M/s Sharni Properties Pvt.Ltd., 22, Pusa Road, New Delhi Delhi - 110 008.

3. CIT

4. CIT(A)

5. DR, ITAT

Assistant Registrar