Income-tax Officer-2, Najibabad. vs Smt. Sarvesh Agarwal, W/o Shri Santosh Agarwal, Station Road, Nagina Distt. Bijnor (UP) PAN: AEDPA 5693 E

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “G” NEW DELHI

BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER
and
SHRI A.T. VARKEY.: JUDICIAL MEMBER

ITA no. 2978/Del/2010
Asstt. Yr: 2002-03

C.O. No. 241/Del/2010
( In ITA no. 2978/Del/2010 ) 
Asstt. Yr: 2002-03

Revenue by : Shri B.R.R. Kumar Sr. DR
Assessee by Shri Anil Sharma Adv. 

Date of hearing: 21/05/2015. 
Date of order : 22/05/2015.

O R D E R

PER S.V. MEHROTRA, A.M..:

1 The appeal by the revenue and the cross-objection by the assessee have been preferred against the order of CIT(A) relating to A.Y. 2002-03. 

2. The learned counsel for the assessee at the very outset contended that the tax effect involved in the present appeals is below Rs. 4 lacs and, therefore, the appeal filed by the revenue is not maintainable in view of recent CBDT instruction, which is binding on the departments. 

3. On the other hand, the learned DR contended that the appeal should not be dismissed on account of tax effect only.

4. We have heard rival submissions of the parties and perused the entire material on record.As per recent CBDT Instruction no. 5/2014 dated 10-7-2014, the monetary limit for filing appeal by the department before the ITAT has been revised to Rs. 4 lacs. Thus, the departmental appeals, involving tax effect below Rs. 4 lacs, are not maintainable before the ITAT. 

4.1. The Hon’ble Jurisdictional Delhi High Court in the case of CIT vs. 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 vs. M/s P.S. Jain & Co., has held that such instruction/ circular would also be applicable to pending cases. 

4.2. Admittedly the tax effect involved in the present appeals is below Rs. 4 lakhs. Therefore, in view of the revised instruction of the CBDT, referred to above, and the Hon’ble Jurisdictional High Court’s decision in the case of Delhi Race Club Ltd., supra, the departmental appeal are not maintainable. 

4.3. Since the departmental appeal, on account of tax effect, is not maintainable, the cross-objection, filed by the assessee, has become infructuous and is dismissed accordingly. 

5. In the result, departmental appeal and assessee’s cross-objections are dismissed. Order pronounced in open court on 22/05/2015..

*MP*

Copy of order to:

1. Assessee 

2. AO 

3. CIT 

4. CIT(A) 

5. DR, ITAT, New Delhi.

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