ACIT, New Delhi v. M/s. Streicat Gutstings (P) Ltd., New Delhi

ITA 1325/DEL/2010 | 2006-2007
Pronouncement Date: 26-05-2010 | Result: Dismissed

Appeal Details

RSA Number 132520114 RSA 2010
Assessee PAN AABCS3777L
Bench Delhi
Appeal Number ITA 1325/DEL/2010
Duration Of Justice 2 month(s)
Appellant ACIT, New Delhi
Respondent M/s. Streicat Gutstings (P) Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 26-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 26-05-2010
Assessment Year 2006-2007
Appeal Filed On 26-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER AND SHRI K.D. RANJAN ACCOUNTANT MEMBER ITA NO.1325/DEL./2010 (ASSESSMENT YEAR : 2006-07) ACIT CIRCLE 9 (1) VS. M/S. STREICAT GUTSTRINGS (P) LTD. NEW DELHI. W-40 GREATER KAILASH I NEW DELHI 110 048. (PAN : AABCS3777L) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : MRS. NAMITA PANDEY SENIOR DR ORDER PER R.P. TOLANI JUDICIAL MEMBER : THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDER OF CIT (APPEALS) FOR THE ASSESSMENT YEAR 2006-07. 2. BRIEF FACTS ARE THAT THE ASSESSEE OFFERED THE AM OUNT OF RS.7 97 240/- AS SHORT TERM CAPITAL GAIN ON SALE OF SHARES CHARGEABL E @ 10% WHEREAS THE A.O. HELD IT TO BE BUSINESS INCOME OF THE ASSESSEE CHARG EABLE AT 30% OF THE TAX. CIT (A) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE . THUS THE EFFECTIVE DISPUTE REMAINS TO BE TAXABILITY OF 20% OF TAX ON A N AMOUNT OF RS.7 97 240/-. 3. LEARNED DR FAIRLY CONCEDES THAT THE TAX EFFECT I S BELOW RS.2 LACS. THE CBDT VIDE INSTRUCTION NO. 2 DATED 24.10.2005 HAS IN CREASED THE MONETARY LIMIT FROM RS.1 LAC TO RS.2 LAC FOR THE PURPOSE OF INSTRUCTION GIVEN TO THE INCOME TAX AUTHORITIES FOR FILING THE APPEAL BEFORE THE TRIBUNAL. IT IS NOW ITA NO.1325/DEL./2010 2 WELL SETTLED THAT THE BOARD INSTRUCTIONS ARE OF BIN DING NATURE ON THE INCOME TAX AUTHORITIES AND THEREFORE THE INCOME TAX AUTH ORITIES SHOULD NOT HAVE FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL INASMU CH AS THE TAX EFFECT ON THE AMOUNTS DISPUTED IN THE PRESENT APPEAL IS BELOW RS. 2 LACS. 4. THE HON'BLE DELHI HIGH COURT IN THE CASE OF MANI SH BHAMBRI (ITA NO.683/2007 ORDER BEING DATED 1.8.2007) HAS ALSO U PHELD DISMISSAL OF APPEAL BY THE TRIBUNAL WHERE SUCH APPEAL WAS FILED IN VIOL ATION OF THE CBDT INSTRUCTION REGARDING TAX EFFECT FOR FILING APPEAL BEFORE THE TRIBUNAL. 5. IN VIEW OF THE ABOVE DECISION AND KEEPING IN VIE W THAT THE TAX EFFECT IN THE PRESENT APPEAL IS LESS THAN THE PRESCRIBED LIMI T OF RS.2 LAKHS WE ARE INCLINED TO DISMISS THE APPEAL OF THE REVENUE. 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 26 TH DAY OF MAY 2010 AFTER THE CONCLUSION OF THE HEARING. SD/- SD/- (K.D. RANJAN) (R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 26 TH DAY OF MAY 2010 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XII NEW DELHI. 5.CIT(ITAT) NEW DELHI. AR ITAT NEW DELHI.