Income Tax Appellate Tribunal - Delhi
Acit, New Delhi vs M/S. Modern Instruments P Ltd., New ... on 22 February, 2016
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IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'E', NEW DELHI
BEFORE SHRI N.K. SAINI, AM AND SMT. BEENA A PILLAI, JM
ITA/IT(SS)A, No. Appellant Respondent AY/ Block Against the order of
Period CIT(A)-III, Delhi
dated
2326/D/2012 ACIT, Central Modern Instruments 2002-03 15.03.2012
Circle 22, P. Ltd., 8, Local
New Delhi. Shopping Centre,
IInd/IIIrd Floor,
Vardhman Siddharth
Plaza, Savita Vihar,
New Delhi.
AAACM5903D
2327/D/2012 ACIT, Central Modern Instruments 2003-04 15.03.2012
Circle 22, P. Ltd., 8, Local
Shopping Centre,
New Delhi. IInd/IIIrd Floor,
Vardhman Siddharth
Plaza, Savita Vihar,
New Delhi.
AAACM5903D
1926/D/2012 ACIT, Central Modern Instruments 2004-05 22.02.2012
Circle 22, P. Ltd., 8, Local
Shopping Centre,
New Delhi. IInd/IIIrd Floor,
Vardhman Siddharth
Plaza, Savita Vihar,
New Delhi.
AAACM5903D
1925/D/2012 ACIT, Central Modern Instruments 2005-06 23.02.2012
Circle 22, P. Ltd., 8, Local
Shopping Centre,
New Delhi. IInd/IIIrd Floor,
Vardhman Siddharth
Plaza, Savita Vihar,
2
New Delhi.
AAACM5903D
2328/D/2012 ACIT, Central Modern Instruments 2006-07 16.03.2012
Circle 22, P. Ltd., 8, Local
Shopping Centre,
New Delhi. IInd/IIIrd Floor,
Vardhman Siddharth
Plaza, Savita Vihar,
New Delhi.
AAACM5903D
2329/D/2012 ACIT, Central Modern Instruments 2007-08 16.03.2012
Circle 22, P. Ltd., 8, Local
Shopping Centre,
New Delhi. IInd/IIIrd Floor,
Vardhman Siddharth
Plaza, Savita Vihar,
New Delhi.
AAACM5903D
Department By : Shri Dev Jyoti Das, CIT-DR
Assessee By : Shri Amit Goel. CA
Date of Hearing : 18.02.2016 Date of Pronouncement : 22.02.2016
ORDER
PER BENCH This is an appeal by the department against the order dated 15/03/2012 of ld. CIT (A)-III, New Delhi.
2. During the course of hearing, the Learned counsel for the assessee at the very outset stated that the tax effect in this appeal is less than Rs.10,00,000/-, therefore, the department ought not to have filed this appeal in view of the circular issued by the CBDT and the provisions 3 contained in Section 268A of the Income Tax Act, 1961 (hereinafter to be referred as the Act).
3. On the other hand, the ld. D.R., although supported the order of the Assessing Officer, but could not controvert this fact that tax effect in this appeal is less than Rs.10,00,000/-.
4. After considering the submissions of both the parties and the material available on record, it is noticed that Section 268A has been inserted by the Finance Act, 2008 with retrospective effect from 01/04/99. The said section 268 of the Act provides that the Board may issue instruction or directions to the other income-tax authorities fixing monetary limits for not filing the appeals before the Appellate Tribunal or the Courts, said instructions/directions are binding on the income tax authorities.
5. It is noticed that the CBDT has issued Circular No.21 of 2015 dated 10.12.2015, vide which it has revised the monetary limit to Rs.10,00,000/- for not filing the appeal before the Tribunal. The relevant portion of the said circular reads as under:
"..........................
...........................4
3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:
S. Appeals in Income-tax Monetary Limit (in No matter 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. ..............................
..............................
9. The monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute & rules. Further, filing of appeal in cases of Income Tax, where the tax effect is not quantif iable or not involved, such as the case of registration of trusts or institutions under section 12A of the IT Act, 1961, shall not be governed by the limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of a particular 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."
6. From Clause 10 of the above said circular it is clear that these instructions are applicable to the pending appeals also and as per clause 3, there is clear cut 5 instruction to the department to withdraw or not to press the appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. These instructions are operative retrospectively to the pending appeals.
7. Keeping in view the CBDT Circular No.21 of 2015 dated 10.12.2015 and also the provisions of Section 268A of Income Tax Act, 1961, we are of the view that the Revenue should not have filed the instant appeal before the Tribunal.
8. In view of the above, without going into merits of the case, we dismiss the appeal filed by the department.
9. In the result, appeals of the department are dismissed.
Order Pronounced in the open court on 22.02.2016 Sd/- Sd/-
(BEENA A PILLAI) (N.K. SAINI)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 22.02.16
*Kavita Arora
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT ASSISTANT REGISTRAR
ITAT NEW DELHI
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Date
1. Draft dictated on 18.02.2016/ PS
22.-2.2016
2. Draft placed before 19.02.2016/22.02.2016 PS
author
3. Draft proposed & JM/AM
placed before the
second member
4. Draft JM/AM
discussed/approved
by Second Member.
5. Approved Draft comes 22.02.16 PS/PS
to the Sr.PS/PS
6. Kept for 22.02.16 PS
pronouncement on
7. File sent to the Bench 22.02.16 PS
Clerk
8. Date on which file
goes to the AR
9. Date on which file
goes to the Head
Clerk.
10. Date of dispatch of
Order.
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