DCIT Circle-11(1), Room NO. 312, C.R. Building, New Delhi Vs. Euro Motors Pvt. Ltd. F-85, Okhla Industrial Area, Phase-1 New Delhi
May, 18th 2015
1 ITA NO. 2630/Del/12
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: `B' NEW DELHI
BEFORE SMT DIVA SINGH, JUDICIAL MEMBER
SH. T.S.KAPOOR, ACCOUNTANT MEMBER
DCIT vs Euro Motors Pvt. Ltd.
Circle-11(1), Room NO. F-85, Okhla Industrial Area,
C.R. Building, New Delhi New Delhi AABCE3458Q
Appellant by Sh.R.S. Singhvi, CA
Respondent by Sh.P. Dam Kanunjia,SR.DR
Date of Hearing 07.05.2015
Date of Pronouncement 15.05.2015
PER DIVA SINGH, JM
By the present appeal filed by the revenue the correctness of the order dated
14/3/2012 of Ld. CIT(A)XIII pertaining to 2007-08 assessment year has been
assailed on the following grounds.
"1. On the facts and circumstance of the case and in laws, the Ld.
CIT(A) has erred in deleting the addition of Rs.12,28,227/- made on
account of disallowance of 2/3 of promotional expenses.
2. The appellant craves leave to add, alter or amend any ground of
appeal raised above at the time of hearing."
2. Right at the outset Ld. AR appearing on behalf of the assessee objected to
the maintainability of the present appeal on the grounds that the tax involved is less
thatn Rs. 4 lakh as such it is contrary to Instruction No. 5/2014 dated 10/7/2014
which has fixed the monetary limit of Rs. 4 lakh. In support of his claim reliance
was placed on various orders of the co-ordinate Bench and also judgment of the
2 ITA NO. 2630/Del/12
Apex Court in Alexander George Vs. CIT (2015) 373 49(SC). The Ld. Sr. DR
stated that although the tax effect involved in the present appeal was less than Rs.
4 lakh, however, on the date of filing the appeal the limit was R. 3 lakh. No
contrary decision was cited by him in order to canvass that a contrary view can be
3. We have heard rival submissions and perused the material available on
record. Admittedly as per recent CBDT Instruction No. 5/2014 dated 10/7/2014,
the monetary limit for filing appeal by the department before the ITAT has been
revised to Rs.4 lacs. Considering the same, it is also seen that the co-ordinate
Benches at Delhi consistently have held that the departmental appeals, involving
tax effect below Rs. 4 lacs, are not maintainable before the ITAT. The view has
been taken following the decision of the Hon'ble Jurisdictional Delhi High Court
in the case of CIT Vs. Delhi Race Club Ltd. Reference may also be made to the
order dated 3/3/2011 where by following the earlier order dated 2/8/2010 in ITA
No. 179/1991 in the case of CIT Delhi-IIIVs. M/s P.S. Jain & Co., it has held that
such instruction/circular would also be applicable to pending cases. Reliance has
also been placed on 319 ITR 347 (Delhi) and 335/ITR 591(Delhi) .In the facts of
the present case admittedly the tax effect involved is below Rs.4 lakhs which has
not been disputed by the Ld. Sr. DR. Therefore, in view of the revised instruction
of the CBDT, referred to above, and following the decisions of the Jurisdictional
High Court in the case of Delhi Race Club Ltd., etc. supra, the departmental appeal
, it is seen is not maintainable.
3. Respectfully following the decision of the Jurisdictional High Court in view
of the above factual position we hold that Instruction No.5/2014 dated
10/07/2014 will apply to the present appeal. As a result, the department's appeal
is dismissed as not maintainable.
3 ITA NO. 2630/Del/12
4. In the result, appeal filed by the department is dismissed without going into
The order is pronounced in the open court on 15th of May , 2015.
(T. S. KAPOOR) (DIVA SINGH)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 15 /05/2015
Copy forwarded to:
5. DR: ITAT
ITAT NEW DELHI
Sl.No. Description Date
1. Date of Dictation by the Author 07/05/2015
2. Draft Placed before the Dictating Member
3. Draft Placed before the Second Member
4. Draft approved by the Second Member
5. Date of approved order comes to the Sr. PS
6. Date of pronouncement of order
7. Date of file sent to the Bench Clerk
8. Date on which file goes to the Head Clerk
9. Date of dispatch of order
4 ITA NO. 2630/Del/12