DCIT, CIRCLE-4(2), NEW DELHI vs. BAGRRYS INDIA LTD., NEW DELHI

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ITA 9592/DEL/2019Status: DisposedITAT Delhi18 July 2022AY 2013-143 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 held that the appeal was not maintainable due to the low tax effect. It also noted that the order under Section 263 had already been quashed by a coordinate bench.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order. The tax effect in the appeal was below the prescribed limit by CBDT Circular No. 17/2019. Additionally, a coordinate bench had already quashed the Pr. CIT's order under Section 263.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the low tax effect and the prior quashing of the Section 263 order by a coordinate bench.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI SHAMIM YAHYA & SHRI YOGESH KUMAR U.S.

Hearing: 14.07.2022Pronounced: 18.07.2022

This Appeal has been filed by the Revenue against the order dated 13/09/2019 passed by cit-2, New Delhi for Assessment year 2013-14.

2.

The grounds of appeal are as under:-

“1. On the facts and in the circumstances of the case and in law, whether the Ld. CIT(A) was right in allowing the appeal solely on the ground that Hon’ble ITAT has quashed the order u/s 263 of the Income Tax Act, 1961, passed by the Pr. Commissioner of Income Tax, Delhi-2 by ignoring the factual findings enumunerated in the assessment order.”

3.

The Ld. DR fairly submitted that, the tax effect involved in the present appeal is Rs. 20,05,145/- which is below the prescribed limit of Rs.50 lakhs as fixed by the CBDT Circular No. 17/2019. Further submitted that, the Co-ordinate Bench of the Tribunal has already quashed the order of Pr. Commissioner of Income Tax, Delhi-1 made u/s 263 of the Income Tax Act vide order dated 29/03/2019 in ITA No. 3785/Del/2018.

4.

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. We are of the considered view that the aforesaid appeal is not maintainable due to low tax effect i.e. less than Rs.50,00,000/. Apart from the same, the order passed by the Pr. Commissioner of Income Tax u/s 263 of the Income Tax Act, has already been quashed by the Co-ordinate Bench of this Tribunal in ITA No. 3785/Del/2018. In view of the same, the Appeal filed by the Revenue is liable to be dismissed.

5.

In the result, the Appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 18th July, 2022.

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