Shiva Forgings, Ghaziabad vs Department Of Income Tax
- CitationITA no. 518/Del/2012
Ratio decidendi
The rule this decision rests on
The departmental appeal is not maintainable before the Tribunal where the tax effect involved is below the monetary limit prescribed by the CBDT instruction; such a circular or instruction, revising the limit for filing appeals by the department, applies to pending cases as well as future ones.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ITA no. 518/Del/2012 Asstt. Yr: 2006-07 ACIT Circle-2, Vs. M/s Shiva Forgings, Ghaziabad. Plot no. 1019, Meerut Road, Ghaziabad. PAN: AAWFS 0044 E
( Appellant ) (Respondent)
Appellant by : Shri Kapil Goel Adv. Respondent by : Shri B.R.R. Kumar Sr. DR
Date of hearing : 19/05/2015. Date of order : 11/06/2015.
ORDER
PER S.V. MEHROTRA, A.M..:
This appeal, preferred by the revenue, is directed against the order 08-11-2011 of CIT(A) relating to A.Y. 2006-07.
2. The learned counsel for the assessee at the very outset contended that the tax effect involved in the present appeal 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 department.
3. On the other hand, the learned DR contended that the appeal should not be dismissed on account of tax effect only.
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, 2
the monetary limit for filing appeal by the department before the ITAT has been revised to Rs. 4 lacs. Thus, the departmental appeal, involving tax effect below Rs. 4 lacs, is 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 appeal 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 is not maintainable.
5. In the result, departmental appeal is dismissed.
Order pronounced in open court on 11/06/2015.
Sd/- Sd/- (A.T. VARKEY ) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: _11/06/2015. *MP* Copy of order to: 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, New Delhi. 3
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