ITO, Ward 13 (2),New Delhi. Vs. M/s. Niksun India (P) Ltd., Flat No.1104, Sanchar Vihar, CGHS Ltd., Plot No.15, Sector 4, Dwarka, New Delhi 110 078.
February, 26th 2015
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH `E' : NEW DELHI)
BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER
SHRI B.C. MEENA, ACCOUNTANT MEMBER
ASSESSMENT YEAR : 2008-09
ITO, Ward 13 (2), vs. M/s. Niksun India (P) Ltd.,
New Delhi. Flat No.1104, Sanchar Vihar,
CGHS Ltd., Plot No.15,
Sector 4, Dwarka,
New Delhi 110 078.
(PAN : AABCN1438R)
ASSESSEE BY : Ms. Nupur Mangla, CA
REVENUE by : Shri P. Dam Kanunjha, Senior DR
PER B.C. MEENA, ACCOUNTANT MEMBER :
This appeal filed by the revenue emanates from the order of the CIT (Appeals)-
XVI, New Delhi dated 16.06.2011 for the assessment year 2008-09.
2. At the time of hearing, the ld. AR submitted that the total returned income was
Rs.15,74,343/- and the assessed income was Rs.22,46,381/-. Therefore, the tax on the
differential income of Rs.6,72,038/- @ 30.9% works out to Rs.2,07,660/- which is
below the monetary limit prescribed for filing departmental appeal. The Assessment
Year in the appeal is 2008-09. The tax effect on the deleted addition is less than the
threshold limit, i.e. Rs.4 lacs. The appeal has been filed on 14.10.2011.
3. We find that the tax effect in this case is less than Rs.4 lacs. As per the
recent CBDT Instruction No.5/2014 dated 10.07.2014, the revenue is not permitted
to file appeal before the Tribunal if the tax effect is less than Rs.4.00 lakh. We find
support from the decision of Hon'ble Supreme Court dated 25.03.2011 in ITA Nos. 3
to 5/2010. Ld. DR for the revenue submitted that Instruction no. 5/2014 is not
applicable for the appeals filed prior to issue of the said instructions. It is also
submitted that the Full Bench of Punjab & Haryana High Court in the case of CIT
Vs. Virendra Construction Co., 239 CTR 1, held that revised monetary limits are
not applicable to the pending appeals, and it is in favour of the revenue.
4. We have heard both the sides and gone through the material available on
record. Instruction No.5/2014 dated 10.07.2014 has revised the monetary limit for
filing the appeal by the department before Income-tax Appellate Tribunal, Hon'ble
High Courts and Hon'ble Supreme Court. Monetary limit for filing the appeal
before the Tribunal is Rs.4.00 lakh; before Hon'ble High Court Rs. 10.00 lakh and
before Hon'ble Supreme Court Rs. 25.00 lakh. Hon'ble Supreme Court in the order
dated 25.03.2011 referred to above has held as under:-
"It is stated that the tax impact in the present cases is less than Rs.
10.00 lacs. The Department has recently issued an instruction
bearing no. 3/2011 dated 09.02.2011, which is identical to its
earlier instruction bearing no. 5/2008 dated 15.05.2008 except
that in so far as the High Court is concerned, the monetary limit in
respect of appeals where the questions of law raised need not to
be answered, has been raised from Rs. 4.00 lacs to Rs. 10.00
lacs. The Division Bench of this Court in ITA No. 89/1999
decided on 28.01.2011 has already held that the instruction
bearing no. 5/2008 dated 15.05.2008 would apply even to the old
pending references and appeals. This principle would thus
naturally equally apply to the instant instruction bearing no.3/2011
dated 09.02.2011, as well. The tax effect being less than Rs.
10.00 lacs, the question of law does not require to be answered.
The appeals are disposed of accordingly."
4.1 Hon'ble Delhi High Court in the case of CIT Vs. Delhi Race Club Ltd. 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 Rs. 10.00 lacs, are not to be
This court in the case of CIT, Delhi-III Vs. M/s P.S. Jain & Co.,
being ITA No. 179/1991 decided on 2nd August, 2010 has taken a
view that such circular would also apply to pending cases."
4.2 In view of the above, Instruction no. 5/2014 dated 10.07.2014 will apply to
all pending appeals. Respectfully following the precedent, it is held that the
appeal is not maintainable in the instant case as the tax effect is less than Rs.4
lacs. Accordingly, it is held that appeal filed by the revenue is not maintainable.
5. In the result, appeal filed by the department is dismissed without going into the
Order pronounced in open court on this 25TH day of February, 2015.
(GEORGE GEORGE K) (B.C. MEENA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated the 25TH day of February, 2015
Copy forwarded to:
4.CIT(A)-XVI, New Delhi.
5.CIT(ITAT), New Delhi.