Income Tax Appellate Tribunal - Delhi
Chhavi Agarwal, Meerut vs Department Of Income Tax on 6 August, 2014
INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "B": NEW DELHI
BEFORE SHRI G. D. AGARWAL, HON'BLE VICE PRESIDENT
AND
SHRI A. T. VARKEY, JUDICIAL MEMBER
ITA No. 2225/Del/2012
(Assessment Year: 2007-08)
ITO, Chhavi Agarwal
Ward-1(2), Aayakar Bhawan, 101/2,
Bhainsali Ground, Delhi Road, Vs. Thapar Nagar,
Meerut Meerut
PAN:AALPA8400B
(Appellant) (Respondent)
Appellant by : Nidhi Srivastava, Adv.
Respondent by : Binod Kr. Goel, Adv.
ORDER
PER A. T. VARKEY, JUDICIAL MEMBER
This is an appeal by the Department against the order dated 24.02.2012 of the CIT(A), Meerut relevant to the assessment year 2007-08.
2. At the outset it has been brought to our notice by the ld AR that the tax effect of the instant case is only Rs.2,92,584/- and produced the copy of the notice of demand u/s 156 of the Income Tax Act, 1961 (herein after 'the Act').
3. From a perusal of the said notice we observe that the tax effect in this appeal is less than the amount prescribed by the CBDT where department ought not to have filed the appeal.
4. The Learned D.R. although supported the order of the Assessing Officer but could not controvert the aforesaid fact that tax effect in this appeal is less than Rs.3,00,000/-.
5. After considering the submission of the Ld. D.R. for the Revenue and the material on record, it is noticed that Section 268A has been inserted by the Finance Act, 2008 with retrospective effect from 01/04/99. The provisions contained in section 268A read as under:
Page No. 2"268A. (1) The Board may, from time to time, issue orders, instructions or directions to other income-tax authorities, fixing such monetary limits as it may deem fit, for the purpose of regulating filing of appeal or application for reference by any income-tax authority under the provisions of this Chapter.
(2) Where, in pursuance of the orders, instructions or directions issued under sub-section (1), an income-tax authority has not filed any appeal or application for reference on any issue in the case of an assessee for any assessment year, it shall not preclude such authority from filing an appeal or application for reference on the same issue in the case of--
(a) the same assessee for any other assessment year; or
(b) any other assessee for the same or any other assessment year.
(3) Notwithstanding that no appeal or application for reference has been filed by an income-tax authority pursuant to the orders or instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party in any appeal or reference, to contend that the income-tax authority has acquiesced in the decision on the disputed issue by not filing an appeal or application for reference in any case.
(4) The Appellate Tribunal or Court, hearing such appeal or reference, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal or application for reference was filed or not filed in respect of any case.
(5) Every order, instruction or direction which has been issued by the Board fixing monetary limits for filing an appeal or application for reference shall be deemed to have been issued under sub-section (1) and the provisions of sub-sections (2), (3) and (4) shall apply accordingly.]"
6. It is not in dispute that the Board's instruction or directions issued to the other income-tax authorities are binding on those authorities, therefore, the department ought not to have filed the appeal in view of the above mentioned section 268A since the tax effect in the instant case is less than the amount prescribed for not filing the appeal.
7. It is noticed that the CBDT has issued Instruction No.3 of 2011 dated 09.02.2011, by which the CBDT has revised the monetary limit to Rs.3,00,000/- for filing the appeal before the Tribunal.
8. Keeping in view the CBDT Instruction No.3 of 2011 dated 09.02.2011 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 Page No. 3 the Tribunal. While taking such a view, we are fortified by the following decisions of Hon'ble Punjab & Haryana High Court :-
1. CIT v Oscar Laboratories P. Ltd (2010) 324 ITR 115 (P&H)
2. CIT v Abinash Gupta (2010) 327 ITR 619 (P&H)
3. CIT v Varindera Construction Co. (2011) 331 ITR 449 (P&H)(FB)
9. In the instant case since the tax effect is admittedly only Rs 2,92,584/= and in the light of the CBDT instruction, since the monetary tax limit for not filing the appeal before the ITAT is Rs. 3.00, without going into merits of the case, we dismiss the appeal filed by the Revenue.
10. In the result, appeal of the Revenue is dismissed Order pronounced in the open court on 06.08.2014.
-Sd/- -Sd/-
(G. D. AGARWAL) (A. T. VARKEY)
VICE PRESIDENT JUDICIAL MEMBER
Dated: 06 /08/2014
A K Keot
Copy forwarded to
1. Applicant
2. Respondent
3. CIT
4. CIT (A)
5. DR:ITAT
ASSISTANT REGISTRAR
ITAT, New Delhi