Income Tax Appellate Tribunal - Kolkata
Cimsys Research India Pvt Ltd., Kolkata vs Department Of Income Tax on 21 May, 2013
आयकर अपीलीय अधीकरण, Ûयायपीठ - " ए ", कोलकाता,
IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH "A", KOLKATA
[(सम¢) ौी के.के.गुƯा,
ा, लेखा सदःय, एवं ौी जाज[ मथन,
मथन, Ûयायीक सदःय]]
[Before Hon'ble Sri K.K.Gupta, AM & Hon'ble Sri George Mathan, JM]
आयकर अपील संÉया /ITA No.576/Kol/2012
िनधॉरण वषॅ/Assessment Year :2004-05
(अपीलाथȸ/APPELLANT ) -वनाम- (ू×यथȸ/RESPONDENT)
I.T.O., Ward-11(4), . M/s.Cimsys Research India
Kolkata -versus- Pvt. Ltd,.,Kolkata
(PAN: AABCC 2581 L)
अपीलाथȸ कȧ ओर से/ For the Appellant: Shri K.K.Das, JCIT,
Sr.DR
ू×यथȸ कȧ ओर से/For the Respondent: Shri S.P.Chowdhury,
Advocate and Shri
Soumitra Chowdhury,
Advocate
सुनवाई कȧ तारȣख/Date of Hearing : 21.05.2013
घोषणा कȧ तारȣख/Date of Pronouncement : 21.05.2013.
आदे श/ORDER
Per Bench This is an appeal by the Revenue on the solitary issue whether on the facts and in the circumstances of the case the ld. CIT(A) is justified in directing the AO to allow the assesee to deduct permission fees to arrive at Annual Value of the house property in contravention to section 23 of the I.T.Act.
2. As per the statement of facts filed by the Revenue it has been pointed out that the tax effect is less than monetary limit prescribed by the CBDT for perusing the appeal before I.T.A.T. it appears that the tax effect involved in this case is below Rs.3 lakhs. Since the tax effect is less than Rs. 3 lakhs as per CBDT Instruction No.3/2011(F.No.279/MISE/142/2007-ITJ) dated 9.2.2011 wherein it has been enhanced the limits for filing of appeals before the Tribunal to Rs.3 lakhs the Revenue's appeal is liable to be dismissed in limine. In view of the latest Order of the Hon'ble Delhi High Court in the case of CIT vs Delhi Race Club in ITA No.128/2008 ITA.No.576/Kol/2012 2 M/s.Cimsys Research India Pvt.Ltd.vs I.T.O., Ward-11(4), Kolkata, A.Yr.: 2004-05 wherein the Hon'ble High Court opined that that the Circular would also apply to the pending cases.
3 The ld. DR appearing on behalf of the Revenue contended that in this said Circular it was specifically mentioned at para 11 that the Circular is effective for the appeals filed subsequent to the specific date in the Circular. Since this appeal has been filed prior to the issue of Circular the monetary limit specified in the Circular is not applicable to the present appeal. Therefore, he requested to dispose of on merit.
4. We have heard the rival submissions and on careful perusal of material on record keeping in view of the fact that the ld. DR could not give contrary judgement to the one on which the ld. Counsel for the assesse has relied wherein the Hon'ble Delhi High Court in the case of CIT vs Delhi Race Club in ITA NO.128/2008 dated 03.03.2011 has held as under :-
"The tax effect involved in the present appeal is Rs.4,65,860/-. As per the recent guidelines of the CBDT, appeal in those cases where the tax effect is less than 10 lacs, are not to be entertained.
This Court in the case of Commissioner of Income Tax-III v. M/s. P.S.Jain and Co. being ITA No.179/1991 decided on 2nd August, 2010 has taken a view that such circular would also apply to pending cases."
4.1. Admittedly the tax payable in respect of grounds of appeal by the Department is less than Rs.3 lakhs and as per revised Instruction of the CBDT No.3 dated 9.2.2011. wherein the CBDT has revised the filing limits filed before the Tribunal, High Court and Supreme Court as under :-
"Before the Income Tax Appellate Tribunal : Rs. 3 lakhs, Appeals u/s 260A of the IT Act Before the Hon'ble High Court : Rs.10 lakhs and Before the Hon'ble Supreme Court : Rs.25 lakhs"
Since in the present case the above revised instruction is well applicable in view of the Hon'ble Delhi High Court (supra) hence in our opinion the Revenue's appeal is not maintainable in view of the said Circular of the CBDT.
ITA.No.576/Kol/2012 3M/s.Cimsys Research India Pvt.Ltd.vs I.T.O., Ward-11(4), Kolkata, A.Yr.: 2004-05 4.2. We further find that it is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute. The appeal under consideration has certainly been filed contrary to the Circular issued by the CBDT Instruction No.3 dated 9.2.2011. The learned DR appearing on behalf of the Revenue could not point out that the case in hand falls under the exceptional clauses of the said circular of the CBDT.
4.3. Respectfully following the above decision of the Hon'ble Delhi High Court, We hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine.
6. In the result the appeal of the Revenue is dismissed.
Order pronounced in the open court on 21.05.2013.
Sd/- Sd/-
[ौी.जाज[ मथन, Ûयायीक सदःय ] [ौी के.के.गुƯा,, लेखा सदःय]
[George Mathan ] [K.K.Gupta]
Judicial Member Accountant Member
(तारȣख)
तारȣख)Date: 21.05.2013.
R.G.(.P.S.)
ITA.No.576/Kol/2012 4
M/s.Cimsys Research India Pvt.Ltd.vs I.T.O., Ward-11(4), Kolkata, A.Yr.: 2004-05 आदे श कȧ ूितिलǒप अमेǒषतः-
Copy of the order forwarded to:
1. M/s. Cimsys Research India Pvt. Ltd., 56D, Mirza Galib Street, Kolkata-700016.
2 I.T.O., Ward-11(4), Kolkata
3. CIT. Kolkata-, 4. CIT(A)-XII, Kolkata
5. CIT(DR), Kolkata Benches, Kolkata.
स×याǒपत ूित/True Copy, आदे शानुसार/ By order, Deputy /Asst. Registrar, ITAT, Kolkata Benches