Income Tax Appellate Tribunal - Delhi
Himal Projects & Investments Pvt. Ltd., ... vs Department Of Income Tax on 1 March, 2016
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'C', NEW DELHI
BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
ITA No. 1015/Del/2012
Assessment Year: 2003-04
Income Tax Officer, vs. M/s Himal Projects & Investments
Ward-12(4) Pvt Ltd.,
New Delhi A-202, Shivalik Colony,
New Delhi - 110 017
(PAN: AAACH2809K)
(APPELLANT) (RESPONDENT)
Appellant by : Sh. Amit Jain, Sr. DR
Respondent by : Sh. Ashish Chadha, CA
Date of Hearing : 23-02-2016
Date of Order : 01-03-2016
ORDER
PER H.S. SIDHU, J.M.
This appeal by the Department is directed against the Order dated 26.12.2011 of Ld. CIT(A)-XV, New Delhi pertaining to assessment year 2003-04 on the following revised grounds:-
"1. Whether on the facts and circumstances of the case and in law, the CIT(A) erred in deleting the addition of Rs. 25 lakhs made u/s. 68 of the I.T. Act, 1961 by the AO.
2. Whether on the facts and circumstances of the case and in law, the CIT(A) erred in deleting the addition of Rs. 62,500/- made on account of commission paid for facilitating its own unaccounted money in the books of account through accommodation entry.
3. The appellant craves leave, to add, alter or amend any ground of appeal raised above at the time of the hearing.
2. We have heard both the parties and perused the material on record. We find that Revenue in the Grounds of Appeal before the Tribunal has challenged the deletion of addition of Rs. 25 lacs - u/s. 68 of the I.T. Act, 1961 and Rs.ITA NO. 1015/DEL/2012 (AY 2003-04) 2
62,500/- made on account of commission paid vide ground no. 1&2, as aforesaid.
3. From the above, we find that the tax effect in the Revenue's Appeal is less than Rs.10,00,000/-, therefore, the Department's Appeal is not maintainable, in view of the Circular No. 21/2015 dated 10th December, 2015 issued vide F.No. 279/Misc. 142/2007-ITJ (Pt.) by the CBDT. For the sake of convenience, the relevant para nos. 3 & 10 of the aforesaid CBDT's Circular are reproduced as under:-
"3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:
Monetary Limit
S No Appeals in Income-tax matters
(in Rs)
1 Before Appellate Tribunal 10,00,000/-
2 Before High Court 20,00,000/-
3 Before Supreme Court 25,00,000/-
It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.
10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed."
4. It is not in dispute that the Board's instruction or directions issued to the income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/ not pressed the present Appeal, in view of ITA NO. 1015/DEL/2012 (AY 2003-04) 3 the aforesaid instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs, prescribed in the above said CBDT's Instructions.
5. Keeping in view the CBDT Instruction No. 21/2015 dated 10th December, 2015, we are of the view that the Revenue should have withdrawn/ not pressed the instant appeal before the Tribunal. We are also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. Accordingly, the Revenue's Appeal is dismissed.
6. In the result, Appeal filed by the Revenue Stands dismissed.
Order pronounced in the Open Court on 01/03/2016.
Sd/- Sd/-
(PRASHANT MAHARISHI) (H.S. SIDHU)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 01/03/2016
*SR BHATNAGAR*
Copy forwarded to: -
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR, ITAT
TRUE COPY By Order,
ASSISTANT REGISTRAR