ACIT, Muzaffarnagar v. M/s Haryana Winneries (P) Ltd., New Delhi

ITA 458/DEL/2011 | 1984-1985
Pronouncement Date: 15-07-2011 | Result: Dismissed

Appeal Details

RSA Number 45820114 RSA 2011
Bench Delhi
Appeal Number ITA 458/DEL/2011
Duration Of Justice 5 month(s) 19 day(s)
Appellant ACIT, Muzaffarnagar
Respondent M/s Haryana Winneries (P) Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 15-07-2011
Date Of Final Hearing 11-07-2011
Next Hearing Date 11-07-2011
Assessment Year 1984-1985
Appeal Filed On 27-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C: NEW DELHI BEFORE SHRI C.L. SETHI JUDICIAL MEMBER AND SHRI K.G. BANSAL ACCOUNTANT MEMBER I.T. A. NO.458/DEL/2011 ASSESSMENT YEAR : 1984-85 ASSISTANT COMMISSIONER OF INCOME-TAX M/S. HARY ANA WINNERIES (P) LTD. CIRCLE-2 MUZAFFARNAGAR. VS. C/O SH. S.K. GARG B-2/14 RAJOURI GARDEN NEW DELHI. PAN: 20691CX4633 (APPELLANT) (RES PONDENT) APPELLANT BY: SHRI ROHIT GARG SR. DR. RESPONDENT BY: NONE. O R D E R PER C.L. SETHI JUDICIAL MEMBER: THE REVENUE IS IN APPEAL AGAINST THE ORDER DATED 6. 10.2010 OF THE COMMISSIONER OF INCOME-TAX (APPEALS) IN THE MATTER OF AN ASSESSMENT MADE BY THE ASSESSING OFFICER UNDER SECTION 143(3)/147/2 51 OF THE INCOME-TAX ACT 1961 (THE ACT) FOR THE ASSESSMENT YEAR 1984-85 . 2 2. IN THIS APPEAL THE REVENUE HAS DISPUTED THE CIT (A)S ORDER IN DELETING THE ADDITION OF RS.3 85 000/- MADE BY THE AO UNDER SEC.68 OF THE ACT AS UNEXPLAINED SHARE APPLICATION MONEY CREDITED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE. 3. WE HAVE HEARD THE LEARNED DR AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. NONE FOR THE ASSESSEE WAS PRESENT. 4. IN THE PRESENT CASE ADMITTEDLY THE TAX AND SURC HARGE PAYABLE ON RS.3 85 000/- IS BELOW RS.3 00 000/-. THE CBDT VID E INSTRUCTION NO.3 DATED 9.2.2011 HAS INSTRUCTED NOT TO FILE THE APPE AL BY THE REVENUE WHERE TAX EFFECT INVOLVED IS NOT IN EXCESS OF RS.3 00 000/-. THE REVISED LIMIT VIDE INSTRUCTION NO.3 DATED 9.2.2011 FOR FILING APPEAL B EFORE THE TRIBUNAL HIGH COURT AND SUPREME COURT IS AS UNDER:- BEFORE THE INCOME TAX APPELLATE TRIBUNAL : RS.3 LA KHS APPEALS U/S 260A OF THE IT ACT BEFORE THE HONBLE HIGH COURT : RS.10 LAK HS AND BEFORE THE HONBLE SUPREME COURT : RS.25 LAKHS IT IS SEEN THAT THE HONBLE HIGH COURT OF DELHI IN THE CASE OF CIT VS. DELHI RACE CLUB LTD. IN ITA NO.128/2008 DATED 3 RD MARCH 2011 HAS HELD AS UNDER:- THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS R S.4 65 860/-. AS PER RECENT GUIDELINES OF THE CBDT APPEAL IN THO SE CASES WHERE THE TAX EFFECT IS LESS THAN 10 LACS ARE NOT BE ENTERTAINED. 3 THIS COURT IN THE CASE OF COMMISSIONER OF INCOME-TA X-III V. M/S. P.S. JAIN AND CO. BEING NO.179/1991 DECIDED ON 2 ND AUGUST 2010 HAS TAKEN A VIEW THAT SUCH CIRCULAR WO ULD ALSO APPLY TO PENDING CASES. SINCE IN THE PRESENT CASE THE ABOVE REVISED INSTRU CTION IS FULLY APPLICABLE IN VIEW OF THE JUDGMENT OF THE HONBLE DELHI HIGH COUR T (SUPRA) HENCE IN OUR OPINION THE REVENUES APPEAL IS NOT MAINTAINABLE IN VIEW OF THE SAID CIRCULAR OF THE CBDT. REFERENCE MAY ALSO BE MADE T O THE DECISION OF HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF CI T VS. ASHOK KUMAR MANIBHAI PATEL & CO. (2009) 317 ITR 386 (MP). 5. WE FURTHER FIND THAT IT IS A SETTLED LAW THAT TH E CIRCULARS ISSUED BY CBDT ARE BINDING ON THE REVENUE. THIS POSITION WAS CONFIRMED BY THE APEX COURT IN THE CASE OF COMMISSIONER OF CUSTOMS V S. INDIAN OIL CORPORATION LTD. REPORTED IN 267 ITR 272 WHEREIN TH EIR LORDSHIPS EXAMINED THE EARLIER DECISIONS OF THE APEX COURT WI TH REGARD TO BINDING NATURE OF THE CIRCULAR AND LAID DOWN THAT WHEN A CI RCULAR ISSUED BY THE BOARD REMAINS IN OPERATION THEN THE REVENUE IS BOUND BY I T AND CANNOT BE ALLOWED TO PLEAD THAT IT IS NOT VALID OR THAT IT IS CONTRAR Y TO THE TERMS OF THE STATUTE. THE APPEAL UNDER CONSIDERATION HAS CERTAINLY BEEN F ILED CONTRARY TO THE CIRCULAR ISSUED BY THE CBDT INSTRUCTION NO.3 DATED 9.2.2011. 4 6. IN VIEW OF THE ABOVE WE HOLD THAT THE APPEAL FI LED BY THE DEPARTMENT AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A) IS NO T MAINTAINABLE AND DESERVES TO BE DISMISSED. WE ORDER ACCORDINGLY. 7. IN THE RESULT APPEAL FILED BY THE REVENUE IS DI SMISSED. 6. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT O N 15 TH JULY 2011. SD/- SD/- (K.G. BANSAL) (C.L. SETHI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15 TH JULY 2011. COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR BY ORDER *MG DEPUTY REGISTRAR ITAT.