Income-tax Officer, Ward-2(1), Meerut v. M/s Pradeep Kumar (HUF) - 2016-LL-1006-34

Citation	2016-LL-1006-34
Appellant Name	Income-tax Officer, Ward-2(1), Meerut
Respondent Name	M/s Pradeep Kumar (HUF)
Court	ITAT-Delhi
Relevant Act	Income-tax
Date of Order	06/10/2016
Assessment Year	2006-07
Judgment	View Judgment
Keyword Tags	monetary limit • tax effect
Bot Summary:	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.10,00,000/- 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. The said section 268 of the Act provides that the Board may issue instruction or directions to the other income-tax authorities fixing monetary limits for not filing the appeals before the Appellate Tribunal or the Courts, said instructions/directions are binding on the income tax authorities. Appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: 3 ITA No. 3863/Del/2015 Pradeep Kumar S. No Appeals in Income-tax matter Monetary Limit 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Further, filing of appeal in cases of Income Tax, where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12A of the IT Act, 1961, shall not be governed by the limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of a particular case. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed. From Clause 10 of the above said circular it is clear that these instructions are applicable to the pending appeals also 4 ITA No. 3863/Del/2015 Pradeep Kumar and as per clause 3, there is clear cut instruction to the department to withdraw or not to press the appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. Keeping in view the CBDT Circular No.21 of 2015 dated 10.12.2015 and also the provisions of Section 268A of Income Tax Act, 1961, we are of the view that the Revenue should not have filed the instant appeal before the Tribunal.

IN INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI Before Sh. N. K. Saini, AM and Smt. Beena Pillai, JM ITA No. 3863/Del/2015 : Asstt. Year : 2006-07 Income Tax Officer, Vs M/s Pradeep Kumar (HUF), Ward-2(1), B-163, Saket, Meerut Meerut (APPELLANT) (RESPONDENT) PAN No. AAHHP8568B Assessee by : Sh. V. Mohan, Adv. Revenue by : Sh. F. R. Meena, Sr. DR Date of Hearing : 03.10.2016 Date of Pronouncement : 06.10.2016 ORDER Per N. K. Saini, AM: This is appeal by department against order dated 31.03.2015 of ld. CIT(A), Meerut. 2. During course of hearing, Learned counsel for assessee at very outset stated that tax effect in this appeal is less than Rs.10,00,000/-, therefore, department ought not to have filed this appeal in view of circular issued by CBDT and provisions contained in Section 268A of Income Tax Act, 1961 (hereinafter to be referred as Act). 2 ITA No. 3863/Del/2015 Pradeep Kumar (HUF) 3. On other hand, ld. D.R., although supported order of Assessing Officer, but could not controvert this fact that tax effect in this appeal is less than Rs.10,00,000/-. 4. After considering submissions of both parties and material available on record, it is noticed that Section 268A has been inserted by Finance Act, 2008 with retrospective effect from 01/04/99. said section 268 of Act provides that Board may issue instruction or directions to other income-tax authorities fixing monetary limits for not filing appeals before Appellate Tribunal or Courts, said instructions/directions are binding on income tax authorities. 5. It is noticed that CBDT has issued Circular No.21 of 2015 dated 10.12.2015, vide which it has revised monetary limit to Rs.10,00,000/- for not filing appeal before Tribunal. relevant portion of said circular reads as under: .. ... 3. Henceforth, appeals/ SLPs shall not be filed in cases where tax effect does not exceed monetary limits given hereunder: 3 ITA No. 3863/Del/2015 Pradeep Kumar (HUF) S. No Appeals in Income-tax matter Monetary Limit (in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that appeal should not be filed merely because tax effect in case exceeds monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of case. 9. monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute & rules. Further, filing of appeal in cases of Income Tax, where tax effect is not quantifiable or not involved, such as case of registration of trusts or institutions under section 12A of IT Act, 1961, shall not be governed by limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of particular case. 10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before Supreme Court will be governed by instructions on this subject, operative at time when such appeal was filed. 6. From Clause 10 of above said circular it is clear that these instructions are applicable to pending appeals also 4 ITA No. 3863/Del/2015 Pradeep Kumar (HUF) and as per clause 3, there is clear cut instruction to department to withdraw or not to press appeals filed before ITAT wherein tax effect is less than Rs.10,00,000/-. These instructions are operative retrospectively to pending appeals. 7. Keeping in view CBDT Circular No.21 of 2015 dated 10.12.2015 and also provisions of Section 268A of Income Tax Act, 1961, we are of view that Revenue should not have filed instant appeal before Tribunal. 8. In view of above, without going into merits of case, appeal filed by department is dismissed. 9. In result, appeal of department is dismissed. (Order Pronounced in Court on 06/10/2016) Sd/- Sd/- (Beena Pillai) (N. K. Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06/10/2016 *Subodh* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5.DR: ITAT ASSISTANT REGISTRAR Income-tax Officer, Ward-2(1), Meerut v. M/s Pradeep Kumar (HUF)

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