ACIT, CENTRAL CIRCLE-8 vs. VENAD PROPERTIES PVT. LTD.,

PDF · subscribers
ITA 3667/DEL/2004Status: DisposedITAT Delhi19 January 2023AY 2001-20024 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 had enhanced the monetary limit for filing appeals to Rs. 50 lacs. Since the tax effect in the present appeal was below this limit, the Tribunal dismissed the appeal as not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). At the outset of the hearing, the Revenue's counsel pointed out that the tax effect of the grounds raised was below the monetary limit prescribed by the CBDT for filing appeals.

What were the issues?

Whether the appeal filed by the Revenue is maintainable considering the tax effect is below the monetary limit prescribed by the CBDT for filing appeals.

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 “B”: NEW DELHI

Before: SHRI SHAMIM YAHYA & MS. ASTHA CHANDRA

For Appellant: Shri T. James Singson, CIT-DR, Shri Vipul Kashyap, Sr. DR
For Respondent: Shri Rohit Tiwari, Advocate, Ms. Tanya, Advocate, Shri T. James Singson, CIT-DR, Shri Vipul Kashyap, Sr. DR
Hearing: 16/01/2023

The appeal filed by the Revenue is against the order dated 31.05.2004 passed by the Ld. Commissioner of Income Tax, (Appeals)-II, New Delhi (“CIT(A)”) pertaining to the assessment year 2001-02.

2.

At the outset of the hearing itself, the Ld. CIT-DR brought to our attention that the tax effect of the grounds raised by Revenue is less than the monetary limit prescribed by CBDT for filing the appeal. Therefore, he prayed that the appeal of the Revenue be decided as per the instruction of CBDT.

3.

As per the latest CBDT Circular No. 17/2019 dated 08.08.2019, the CBDT has further enhanced the monetary limit for filing of appeal by the Department before the Income Tax Appellate Tribunal from Rs. 20 lacs to Rs. 50 lacs. The said Circular also makes reference to the earlier Circular No. 3/2018 dated 11.7.2018 and specially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This Circular is not in supersession of the earlier Circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier Circular. This inter alia means that all the other conditions mentioned in the earlier Circular No. 3 of 2018 dated 11.7.2018 will apply mutatis mutandis including that is, it will apply to all the pending appeals. For the sake of ready reference, the latest Circular is reproduced hereunder:

“F. No.279/Misc. 142/2007-ITJ(Pt.) Government of India Ministry of Finance Department of Revenue Central Board Direct Taxes Judicial Section New Delhi. 8th August 2019

Subject: - Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation.- Reference is invited to the Circular No.3 of2018 dated 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment dated 20th August. 2018 vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal. High Courts and SLPs/appeals before Supreme Court have been specified. Representation has also been received that an anomaly in the said circular at para 5 may be removed. “2. As a step towards further management of litigation. it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S. No Appeals/SLPs in income Monetary Limit (Rs.) tax matters 1. Before Appellate Tribunal 50,00,000/- 2. Before High Court 1,00.00.000/- 3. Before Supreme Court 2,00,00,000/- 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular is substituted by the following para: "5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately.

4.

The said modifications shall come into effect from the date of issue of this Circular.

5.

The same may be brought to the notice of all concerned.

6.

This issues under section 268A of the Income-tax Act, 1961.” Further, CBDT vide Circular No. F.No.279/19-93/2018-ITJ dated 4. 20.08.2019 has clarified that it will apply to all pending appeals. Thus, in view of the aforesaid Circular, the appeal of the Revenue is dismissed as not maintainable as the tax effect of the subject appeal is below Rs. 50 lacs. 3

More judgments on Section 268A

All 3,931 judgments and leading authorities on Section 268A →

Recent GST High Court judgments

Search GST case law →