2013 (3) TMI 640 - AT - Income Tax

Summary

Issues involved: Appeal filed by revenue against deletion of addition of Rs. 9,73,650 for 2006-07 assessment year, maintainability of appeal u/s 3/2011 dated 09.02.2011 due to tax effect less than Rs. 3.00 lakh.

Issue 1 - Deletion of addition of Rs. 9,73,650:
The appeal was filed by the revenue against the order of CIT (A)-XXII, New Delhi pertaining to the 2006-07 assessment year, challenging the deletion of addition of Rs. 9,73,650. The Ld. AR contended that the departmental appeal is not maintainable due to the tax effect being less than Rs. 3,00,000. Upon examination, the Ld. Sr. DR confirmed that the tax effect was indeed less than Rs. 3,00,000. The Tribunal found support from the decision of the Hon'ble Supreme Court in ITA Nos. 3 to 5/2010, which stated that the revenue cannot file an appeal if the tax effect is less than Rs. 3,00,000.

Issue 2 - Maintainability of appeal u/s 3/2011 dated 09.02.2011:
The Instruction No. 3/2011 dated 09.02.2011 revised the monetary limit for filing appeals by the department before the Tribunal. The monetary limit for filing an appeal before the Tribunal was set at Rs. 3,00,000. The revenue contended that the instruction was not applicable to appeals filed prior to its issuance. However, the Tribunal referred to the decision of the Hon'ble Supreme Court and the Full Bench of Punjab & Haryana High Court, which supported the applicability of the revised monetary limits to pending appeals. Citing the decision of the Hon'ble Delhi High Court in the case of CIT Vs. Delhi Race Club Ltd., it was held that the appeal was not maintainable as the tax effect was less than Rs. 3,00,000.

Conclusion:
In conclusion, the Tribunal dismissed the appeal filed by the revenue without delving into the merits, as it was held that the appeal was not maintainable due to the tax effect being less than Rs. 3,00,000. The decision was pronounced on 28th March 2013.