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).
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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.
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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.
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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.
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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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