What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable due to low tax effect, as per CBDT Circular No. 17/2019. The Revenue conceded this point.

The Revenue filed an appeal against the order of the CIT(A) for assessment year 2019-20. The assessee contended that the tax effect was below the CBDT's prescribed limit of Rs. 50 lakhs.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the low tax effect, based on CBDT circulars.

ACIT vs Tirupati Lpg Industries (P) Ltd. | ITAT Delhi 2022

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

Before: SHRI CHALLA NAGENDRA PRASAD & Dr. B.R.R. KUMAR

For Appellant: Shri Pranav Yadav

For Respondent: Ms. Rajeshwari R

Hearing: 15.09.2022

आदेश / O R D E R PER C. N. PRASAD, J.M.

This appeal is filed by the Revenue against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to NFAC) dated 24.02.2022 for assessment year 2019-20.

At the time of hearing, the learned Counsel for the assessee submitted that tax effect involved in this appeal is below the prescribed limit of Rs.50 lakhs, as fixed by the CBDT and requested to dismiss the Revenue’s appeal on account of low tax effect.

Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.17/2019 dated 8th August, 2019 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.50,00,000/- and this factual position has been fairly conceded by the learned Senior Departmental Representative.

We have heard both the parties and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised. In view of the CBDT Circular No.17/2019 dated 8th August, 2019 having retrospective effect as coordinate Bench of the Tribunal in case of Dinesh Madhavlal Patel [TS- 469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14th August, 2019 has already decided the issue as to the applicability of the captioned circular to the pending appeals in affirmative and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.50,00,000/- hence, the aforesaid appeal filed by the Revenue is hereby dismissed having been become infructuous. However, in case, the present appeal is found to be maintainable at any stage for any technical reasons, the Department shall be at liberty to seek recall of this order under relevant provisions of law.

In the result, the appeal filed by the Revenue, is dismissed being infructuous.

Order pronounced in the open court on : 15/09/2022.

ACIT CENTRAL CIRCLE-II, NOIDA vs. TIRUPATI LPG INDUSTRIES (P) LTD., DELHI

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