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Income Tax Officer, Ward-6(2), New Delhi Vs. M/s Marudhar Services Pvt. Ltd., 4, Community Centre, East of Kailash, New Delhi
July, 24th 2015
          IN THE INCOME TAX APPELLATE TRIBUNAL
              DELHI BENCH `SMC-2', NEW DELHI
                    Before Sh. N. K. Saini, AM
            ITA No. 76/Del/2014 : Asstt. Year : 1991-92
Income Tax Officer,              Vs M/s Marudhar Services Pvt. Ltd.,
Ward-6(2),                          4, Community Centre, East of
New Delhi                           Kailash, New Delhi
(APPELLANT)                         (RESPONDENT)
PAN/GIR No. M-110
           Assessee by : Sh. Sankalp Anil Sharma, Adv.
           Revenue by : Sh. Yatendra Singh, Sr. DR

Date of Hearing : 23.07.2015      Date of Pronouncement : 23.07.2015

                                 ORDER


       This appeal by the department is directed against the
order dated 25.10.2013 of ld. CIT(A)-IX, 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.4,00,000/-,     therefore,    the
department ought not to have filed this appeal in view of the
circular issued by the CBDT and the provisions contained in
Section 268A of the Income Tax Act, 1961 (hereinafter to be
referred as the Act).
                                2                 ITA No.76/Del/2014
                                                Marudhar Services Pvt. Ltd.

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.4,00,000/-.




4.    After considering the submissions of the ld. D.R. 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:

     " 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               ITA No.76/Del/2014
                                              Marudhar Services Pvt. Ltd.

     (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.] "

5.    It is not in dispute that the Board ' s instruction or
directions issued to the income-tax authorities are binding on
those authorities, therefore, the department ought not to have
filed the appeal in view of the above said provisions
mentioned in section 268A of the Act since the tax effect in
the instant case is less than the amount prescribed for not
filing the appeal.
                               4               ITA No.76/Del/2014
                                             Marudhar Services Pvt. Ltd.

6.    It is noticed that the CBDT has issued Instruction No.5
of 2014 dated 10.07.2014, by which the CBDT has revised
the monetary limit to Rs. 4,00,000/-    for filing the appeal
before the Tribunal.




7.    Keeping in view the CBDT Instruction No.5 of 2014
dated 10.07.2014 and also the provisions of Section 268A of
Income Tax Act, 1961, I am of the view that the Revenue
should not have filed the instant appeal before the Tribunal.
While taking such a view, I am 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)

8.    Similarly the Hon ' ble Delhi High Court in the case of
CIT v. Delhi Race Club Ltd. in ITA No.128/2008, order dated
03.03.2011 by following the earlier order dated 02.08.2010
in ITA No.179/1991 in the case of CIT Delhi-III v. M/s. P.S.
Jain & Co. held that such circular would also be applicable
to pending cases.
                               5                ITA No.76/Del/2014
                                              Marudhar Services Pvt. Ltd.

9.      From the ratio laid down by the Hon ' ble Delhi High
Court, it is clear that the instructions issued in the Circulars
by CBDT are applicable for pending cases also. Therefore,
by keeping in view the ratio laid down in the aforesaid
referred to cases, I am of the considered view that Instruction
No.5/14 dated 10.07.2014 issued by the CBDT are applicable
for the pending cases also and in the said instructions,
monetary tax limit for not filing the appeal before the ITAT
is Rs. 4.00 lakhs.

10. In view of the above, without going into merits of the
case, I dismiss the appeal filed by the Revenue.

11. In the result, appeal of the Revenue stand dismissed.
(Order Pronounced in the Court on 23/07/2015).

                                           Sd/-
                                       (N. K. Saini)
                                   ACCOUNTANT MEMBER
Dated: 23/07/2015
*Subodh*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5.DR: ITAT
                                           ASSISTANT REGISTRAR

 
 
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