JCIT (OSD), CIRCLE-12(2), NEW DELHI vs. INTERNATIONAL HOSPITAL LTD. (BEFORE AMALGAMATION M/S ESCORTS HOSPITAL AND RESEARCH CENTRE LTD), NEW DELHI

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ITA 4843/DEL/2019Status: DisposedITAT Delhi12 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 filed by the Revenue was not maintainable due to low tax effect, as per CBDT Circular No. 17/2019. The appeal was dismissed on this ground.

What were the facts?

The Revenue appealed against an order of the CIT(A) which deleted an addition of Rs. 1,28,53,858/- made by the AO. The addition was for disallowing excess interest expenses claimed over interest income.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the Tribunal given the low tax effect, in light of the CBDT's revised monetary limits for filing appeals.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SH. SHAMIM YAHYA & SH. ANUBHAV SHARMA

Hearing: 09.06.2022

This appeal is preferred by the Revenue against order dated 15/02/2019 passed by the Learned Commissioner of Income Tax (Appeals)- 34, New Delhi for Assessment Year 2013-14.

2.

Heard. Revenue has challenged the order of Ld. CIT(A) deleting the addition made by the AO of Rs. 1,28,53,858/- which was made by the AO by disallowing excess interest expenses claimed over interest income as the assessee could not fulfil the test of commercial expectancy.

3.

During the hearing it transpires that the total tax effect involved is 41,70,434/-, so the present appeal falls in the category where the tax effect involved in the case is below Rs.50 Lacs.

4.

The CBDT vide Circular No.17/2019 dated 08.08.2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lacs. Further, CBDT vide letter dated 20.08.2019 has also clarified that Circular No. 17/2019 would be applicable to all pending appeals.

5.

In such circumstances, the present appeal filed by the Revenue is not maintainable for its low tax effect. Ld DR however, submitted that the interest of Revenue be protected to the extent if the matter falls in the exceptions for contesting the low tax effect appeals.

6.

Accordingly, the appeal of Revenue is dismissed barred by CBDT Circular No.17/2019 dated 08.08.2019. However, subject liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11.07.2018.

Order pronounced in the open court on 12th July, 2022.

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