DCIT, New Delhi v. M/s Fiem Industries Ltd., New Delhi

ITA 203/DEL/2011 | 2006-2007
Pronouncement Date: 08-07-2011 | Result: Dismissed

Appeal Details

RSA Number 20320114 RSA 2011
Assessee PAN AAACF1034E
Bench Delhi
Appeal Number ITA 203/DEL/2011
Duration Of Justice 5 month(s) 26 day(s)
Appellant DCIT, New Delhi
Respondent M/s Fiem Industries Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 08-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 08-07-2011
Date Of Final Hearing 24-06-2011
Next Hearing Date 24-06-2011
Assessment Year 2006-2007
Appeal Filed On 13-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B DELHI BEFORE SHRI RAJPAL YADAV AND SHRI K.G. BANSAL ITA NO. 203(DEL)/2011 ASSESSMENT YEAR: 2006-07 DEPUTY COMMISSIONER OF F IEM INDUSTRIES LIMITED INCOME-TAX CIRCLE 11(1) VS. D -34 DSIDC PACKAGING NEW DELHI. COMPLEX KIRI NAGAR NEW DELHI. PAN-AAACF1034E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KISHORE B SR. DR RESPONDENT BY : S HRI V. SACHDEV C.A. ORDER PER K.G. BANSAL : AM THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YE AR 2006-07 ARISES OUT OF THE ORDER OF LD. CIT(APPEALS)-XIII NEW DE LHI. THE GROUNDS OF APPEAL RAISED ARE REPRODUCED AS UNDER:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 3 77 600/- ON ACCOUNT OF PROFESSIONAL FEES PAID TO M/S U.L. INDIA (P) LTD. TREATING IT AS REVENUE IN NATURE. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 3 13 461/- ON ACCOUNT OF DEPRECIATION ON WORK STATION. ITA NO. 203(DEL)/2011 2 2. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS LESS THAN RS. 3.00 LAKH. THIS POSITION IS ADMITTED BY THE LD. D.R. THEREFORE AS PER THE INSTRUCTION NO . 3/2011 DATED 09.02.2011 THE REVENUE IS NOT PERMITTED TO FILE APPEAL BEFOR E THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS. 3.00 LAKH. HE PLACED REL IANCE ON THE DECISION OF HONBLE SUPREME COURT DATED 25.03.2011 IN ITA NO S. 3 TO 5/2010. ON THE OTHER HAND LD. DR FOR THE REVENUE SUBMITTED THAT INSTRUCTION NO. 3/2011 IS NOT APPLICABLE FOR THE APPEALS FILED PRIOR TO ISSUE OF THE SAID INSTRUCTIONS. IT IS ALSO SUBMITTED THAT THE DE CISION OF FULL BENCH OF PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. VIR ENDRA CONSTRUCTION CO. 239 CTR 1 THAT REVISED MONETARY LIMITS ARE N OT APPLICABLE TO THE PENDING APPEALS IS IN FAVOUR OF THE REVENUE. 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUG H THE MATERIAL AVAILABLE ON RECORD. INSTRUCTION NO. 3/2011 DATED 09.02.2011 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE D EPARTMENT BEFORE INCOME- TAX APPELLATE TRIBUNAL HONBLE HIGH COURTS AND HONBLE SUPREME COURT. MONETARY LIMIT FOR FILING THE APPEAL BEFORE THE T RIBUNAL IS RS. 3.00 LAKH; BEFORE HONBLE HIGH COURT RS. 10.00 LAKH AND BEFOR E HONBLE SUPREME ITA NO. 203(DEL)/2011 3 COURT RS. 25.00 LAKH. HONBLE HIGH COURT IN TH EIR 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 LAKHS. THE DEPARTMENT HAS RECENT LY ISSUED AN INSTRUCTION BEARING NO. 3/2011 DATED 09.02.2011 WHICH IS IDENTICAL TO ITS EARLIER INSTRUCTION BEARING N O. 5/2008 DATED 15.05.2008 EXCEPT THAT IN SO FAR AS THE HIGH CO URT IS CONCERNED THE MONETARY LIMIT IN RESPECT OF APPEA LS WHERE THE QUESTIONS OF LAW RAISED NEED NOT TO BE ANSWERE D HAS BEEN RAISED FROM RS. 4.00 LAKHS TO RS. 10.00 LAKHS. T HE DIVISION BENCH OF THIS COURT IN ITA NO. 89/1999 DECIDED O N 28.01.2011 HAS ALREADY HELD THAT THE INSTRUCTIO N BEARING NO. 5/2008 DATED 15.05.2008 WOULD APPLY EVEN TO THE OLD PENDING REFERENCES AND APPEALS. THIS PRINCIPLE WOULD TH US NATURALLY EQUALLY APPLY TO THE INSTANT INSTRUCTION BEARING NO.3/2011 DATED 09.02.2011 AS WELL. THE TAX EFFECT BEING LESS THAN RS. 10.00 LAKHS THE QUESTION OF LAW DOES NOT REQUIRE TO BE ANSWERED. THE APPEALS ARE DISPOSED OF ACCORDING LY. 3.1 LD. AR FOR THE ASSESSEE HAS ALSO RELIED ON THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO. 128/2008 DATED 03.03.2011 WHEREIN IT HAS BEEN HELD AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS RS. 4 65 860/-. AS PER THE RECENT GUIDELINES OF THE CBDT APPEA L IN THOSE CASES WHERE THE TAX EFFECT IS LESS THAN RS. 10.0 0 LAKHS ARE NOT TO BE ENTERTAINED. THIS COURT IN THE CASE OF CIT DELHI-III VS. M/S P .S. JAIN & CO. BEING ITA NO. 179/1991 DECIDED ON 2 ND AUGUST 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WOULD ALSO APPLY TO PENDING CASES. ITA NO. 203(DEL)/2011 4 3.2 IN VIEW OF THE DECISION OF HONBLE DELHI HIGH COURT WHICH IS THE JURISDICTIONAL HIGH COURT IN THIS CASE IT IS HEL D THAT INSTRUCTION NO. 3/2011 DATED 09.02.2011 WILL APPLY TO ALL PENDING APPE ALS. RESPECTFULLY FOLLOWING THE PRECEDENT IT IS HELD THAT THE AP PEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS TH AN RS. 3.00 LAKHS. ACCORDINGLY IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NO T MAINTAINABLE. 4. IN THE RESULT APPEAL FILED BY THE DEPARTMENT IS DISMISSED IN LIMINE WITHOUT GOING INTO THE MERITS. 5. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 8.7.2011. SD/- SD/- (RAJPAL YADAV) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE OF ORDER: 8.7.2011. SP SATIA COPY OF THE ORDER FORWARDED TO:- FIEM INDUSTRIES LTD. NEW DELHI. DCIT CIRCLE 11(1) NEW DELHI. CIT CIT(APPEALS) THE DR ITAT NEW DELHI. ASSISTANT REGISTRAR.