Ito New Delhi v. Sh Suresh Chander Gurgaon

Ita No 3612 Del 09 A Y 2002 03 1 In The Income Tax Appellate Tribunal Delhi Bench G New Delhi Before Shri R P Tolani Judicial Member And Shri Shamim Yahya Accountant Member I T A No 3612 Del 2009 A Y 2002 03 Income Tax Officer Ward 47 1 Vs Shri Sur Esh Chander Room No 425 Mayur Bhavan Vill Po Maulaher A New Delhi Gurgaon Haryana Pan Adppc 9314 F Appellant Respondent Appellant By Sh Rattan Singh Yadav Ca Respondent By Shri Kishore B Sr Dr Order Per Shamim Yahya Am This Appeal By The Revenue Is Directed Against T He Order Of The Cit A Dated 15 6 2009 For The Assessment Year 2002 03 2 The Issue Raised Pertains To Allowance Of Exemp Tion U S 10 10 C Amounting To Rs 4 41 261 3 At The Threshold Before Us Ld Counsel Of The A Ssessee Submitted That The Tax Effect In This Case Is Below Rs 2 Lakhs Fixed By The Cbdt For Filing The Appeal Before The Tribunal Vide Instruction No 5 Dated 16 7 2007 While Considering The Effect Of Cbdt Instructions In This Regard Itat Delhi Benches Are Consistently Taking The View That Revenue Authorities Must Give Respect To The C B D T Circulars And Should Not File Appeal In Small And Petty Cases The Whole Idea Of The Cir Cular Is Not To Waste Energy Of The Department On Small Matters And Save It For High Tax Yielding Cases Ita No 3612 Del 09 A Y 2002 03 2 4 In Our Above View We Find Support From The Rece Nt Decision Of The Honble Bombay High Court In The Case Of Commissioner Of In Come Tax Vs Pithwa Engg Works 2005 197 Ctr Bom 655 2005 276 Itr 519 Bom Wherein Their Lordships Following Their Order In The Case Of Cit Vs Camco Colour Co 2002 173 Ctr Bom 255 2002 254 Itr 565 Bom Held That Instruction Dt 27 Th March 2000 Reflect The Policy Decision Taken By The Board Not To Raise Questions Of Law Whe Re The Tax Effect Is Less Than The Amount Prescribed With A View To Reduce Litigations Before The High Courts And The Supreme Court The Said Circular Is Binding On The Revenue One Fails To Understand How The Revenue Can Contend That So Far As New Case S Are Concerned The Circular Issued By The Board Is Binding On Them And In Compliance W Ith The Said Instructions They Do Not File References If The Tax Effect Is Less Than Rs 2 Lakhs But The Same Approach Is Not Adopted With Respect To The Old Referred Cases Even If The Tax Effect Is Leas Than Rs 2 Lakhs There Is No Logic Behind This Approach Boa Rds Circular Dt 27 Th March 2000 Is Very Much Applicable Even To The Old References Whi Ch Are Still Undecided The Department Is Not Justified In Proceeding With The Old References Wherein The Tax Impact Is Minimal Thus There Is No Justification To Pro Ceed With Decades Old References Having Negligible Tax Effect 5 For Similar Proposition We Also Find Support Fr Om The Decision Of High Court Of Delhi In The Case Of Commissioner Of Income Tax Vs Pradeep Kumar Gupta 2007 207 Ctr Del 115 Wherein Their Lordships Held That Tax Effect Being Less Than Rs 2 Lakh The Appeal Filed By The Revenue Against The Cbdt Instru Ction Was Not Maintainable 6 In This View Of The Matter And Respectfully Foll Owing The Decisions Supra It Is Held That Since The Tax Effect Involved In The Inst Ant Appeal Of The Revenue Is Less Than Rs 2 Lac The Same Is Against The Instructions Iss Ued By The Cbdt And Hence Not Maintainable Before The Tribunal Accordingly The Appeal Filed By The Revenue Is Liable To Be Dismissed On This Ground Alone And The Same I S Dismissed Accordingly Ita No 3612 Del 09 A Y 2002 03 3 7 In The Result The Appeal Filed By The Revenue I S Dismissed Order Pronounced In The Open Court On 20 01 201 0 Sd Sd R P Tolani Shamim Yahya Judicial Member Accountant Member Date 20 01 2010 Srb Copy Forwarded To 1 Appellant 2 Respondent 3 Cit 4 Cit A 5 Dr Itat True Copy By Order Deputy Registrar Itat Delhi Benches