Sri Sai Maritechno Pvt. Ltd., New Delhi vs Department Of Income Tax
- CitationITA no. 5665 & 5666/Del/2013
Ratio decidendi
The rule this decision rests on
Where the tax effect involved in a departmental appeal is below the monetary limit prescribed by the CBDT instruction in force, the appeal is not maintainable before the Tribunal, and that bar applies to pending appeals as well as fresh ones, as the jurisdictional High Court has held in following its earlier decision.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1 ITA 5665 & 5666/Del/13 DCIT Vs. Sri Sai Maritechno Pvt. Ltd.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH "G" NEW DELHI BEFORE SHRI G.D. AGRAWAL : VICE PRESIDENT AND SHRI GEORGE GEORGE K.: JUDICIAL MEMBER
ITA no. 5665 & 5666/Del/2013 Asstt. Yr: 2006-07 DCIT, Circle 9(1), Vs. Sri Sai Maritechno Pvt. Ltd., New Delhi. C-6, Gulmohar Park, New Delhi. PAN: AABCS 9916 R.
( Appellant ) (Respondent)
Appellant by : Shri B.R.R. Kumar Sr. DR Respondent by Shri Jitender Tanikillu Adv.
Date of hearing: 02/03/2015. Date of order : 02/03/2015.
ORDER
PER G.D. AGRAWAL, V.P.:
These appeals have been preferred by the revenue against separate orders of CIT(A) relating to A.Y. 2006-07. ITA no. 5665/Del/07 is quantum appeal against CIT(A)'s order dated 17-7-2013, whereas ITA no. 5666/Del/2013 has been preferred against deletion of penalty levied u/s 271(1)(c) of the I.T. Act.
2. The learned counsel for the assessee at the very out set contended that the tax effect involved in the present appeals is below Rs. 4 lacs and, therefore, the appeals filed by the revenue are 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 appeals should not be dismissed on account of tax effect only.
2 ITA 5665 & 5666/Del/13 DCIT Vs. Sri Sai Maritechno Pvt. Ltd.
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.
5. In the result, departmental appeals are dismissed. Order pronounced in open court on 02/03/2015..
Sd/- Sd/- ( GEORGE GEORGE K. ) ( G.D. AGRAWAL) JUDICIAL MEMBER VICE PRESIDENT Dated: 02/03/2015. *MP* Copy of order to:
1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, New Delhi.
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