ITO, NEW DELHI vs. M/S. RAGHVENDER SHANKAR FINANCE & INVESTMENT CO. PVT. LTD., NEW DELHI
What did the Tribunal hold?
The Tribunal allowed the Revenue's M.A. and restored the appeal to its original number, acknowledging that the tax effect at the time of the original decision met the criteria. Subsequently, considering the revised tax effect limit, the Tribunal dismissed the Revenue's appeal.
What were the facts?
The Revenue filed a Miscellaneous Application (M.A.) to recall the Tribunal's earlier order dismissing their appeal due to low tax effect. The assessee's appeal was dismissed based on CBDT Circular No. 17/2019, which set a tax effect limit of INR 50 Lakhs. However, the current tax effect is below INR 60 Lakhs as per a later circular.
What were the issues?
Whether the Tribunal's order dismissing the appeal for low tax effect should be recalled, and if the appeal should be re-adjudicated based on prevailing tax effect limits.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI “C-FRIDAY” BENCH: NEW DELHI
Before: SHRI YOGESH KUMAR U.S & SHRI MANISH AGARWAL
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
The captioned Miscellaneous application is filed by the Revenue with a prayer to recall the order of the Tribunal dated 08.04.2021 in Assessment Year 2005-06 alongwith appeal filed by the Revenue. No one attended the proceeding on behalf of the assessee.
M.A.No.152/Del/2021 [In [Assessment Year : 2005-06] 2. The Ld.Sr. DR for the Revenue has submitted that the appeal of the Revenue was dismissed by the Tribunal on account of low tax effect. The Tribunal shall give the liberty to the assessee to revise the appeal if tax effect was found incorrect.
Ld.AR for the assessee submitted that the tax effect involved in the appeal was above INR 50 Lakhs in terms of CBDT Circular No.17/2019 dated 08.08.2019 wherein tax effect limit was revised upto INR 50 Lakhs.
We have heard the contention of Ld. Sr. DR for the Revenue and perused the material available on record. From the perusal of the records, it was seen that tax effect in this case was more than INR 50 Lakhs when the appeal of the assessee was decided, since at that time, CBDT Circular No.17/2019 dated 08.08.2019 was in operation according to which the tax effect in the case of the Revenue’s appeal should be more than INR 50 Lakhs and therefore, the M.A. filed by the Revenue is allowed and the appeal of the Revenue is restored to its original number.
Year : 2005-06] 5. During the course of hearing, it is seen that the tax effect in the present case is below INR 60 Lakhs as the mandatory limit for filing the appeal of the Revenue has been revised in terms of CBDT Circular No.09/2024 dated 17.09.2024 wherein the tax effect limits were increased to INR 60 Lakhs before the Tribunal. Therefore, the appeal of the Revenue is dismissed being low tax effect in view of Page | 2
In the result, M.A. filed by the Revenue is allowed and appeal of the Revenue is dismissed.
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