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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
                  (DELHI BENCH `E' : NEW DELHI)


                             ITA No.4585/Del./2011
                         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)

       (APPELLANT)                                      (RESPONDENT)

                  ASSESSEE BY : Ms. Nupur Mangla, CA
               REVENUE by : Shri P. Dam Kanunjha, Senior DR



       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.
                                                                    ITA NO.4585/Del/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.
                                                                      ITA NO.4585/Del/2011

          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.

                   SD/-                                      SD/-
          (GEORGE GEORGE K)                             (B.C. MEENA)
           JUDICIAL MEMBER                          ACCOUNTANT MEMBER

Dated the 25TH day of February, 2015
                                    ITA NO.4585/Del/2011

Copy forwarded to:
     4.CIT(A)-XVI, New Delhi.
     5.CIT(ITAT), New Delhi.
                                    AR, ITAT
                                    NEW DELHI.
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