ACIT, CIRCLE- 15(1), NEW DELHI vs. LEON REALTORS PVT. LTD., NEW DELHI

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ITA 3266/DEL/2018Status: DisposedITAT Delhi28 February 2023AY 2014-153 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the CBDT circular mandates that appeals with a tax effect below Rs. 50 lakhs should not be filed or pressed. Therefore, the Revenue's appeal was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee pointed out that the tax effect in the appeal was less than Rs. 50 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the monetary limit prescribed by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E” NEW DELHI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI ANADEE NATH MISSHRA

For Respondent: Ms. Sarita Kumari, CIT DR, Ms. Shivani Sanghi, AR
Hearing: 28.02.2023

आदेश /O R D E R PER C.N. PRASAD, J.M.

1.

This appeal by Revenue has been directed against the order of Ld. CIT(Appeals)-5, Delhi dated 22.02.2018 for AY 2014-15.

2.

The Ld. Counsel for Assessee submits that the Revenue effect in this appeal is less than Rs.50 lakhs. Referring to the grounds of appeal of the Revenue and the assessment order it is submitted that the disputed addition is only Rs.41,20,845/- on which the tax effect is less than Rs.50 lakhs. 1

I.T.A.No. 3266/Del/2018/A.Y.2014-15

3.

We have heard Ld. Representatives of both the parties.

Admittedly, the tax effect in the Departmental appeal is less than Rs.50 lakhs. Vide Circular No. 3/18 dated 11.07.2018 issued by CBDT u/s 268A of the I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs. 20 lakhs. It is also directed that this Instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below this specified tax effect may be withdrawn/not pressed. The aforesaid circular has been amended by issuing further Circular No. 17/2019, whereby the monetary limit for filing Income-tax appeals before the Tribunal has been enhanced to Rs. 50 lakhs. Ld. DR in view of the above Board Circular did not press the Departmental appeal. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board Instruction referred to above and, therefore, the appeal of the Department is liable to be dismissed.

4.

However, in the event of the Revenue finding that the tax effect in this appeal is more than Rs.50 lakhs or covered under any exceptions under CBDT Circular the Revenue is at liberty to file miscellaneous application for recall of this order.

I.T.A.No. 3266/Del/2018/A.Y.2014-15

5.

In the result, the Departmental appeal is dismissed.

Order pronounced in the open court on 28.02.2023

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