ITO WARD - 7(4), NEW DELHI vs. DOUBLE ESS ESTATES PVT LTD, NEW DELHI

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ITA 3808/DEL/2019Status: DisposedITAT Delhi23 May 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 low tax effect, as per CBDT Circular No. 17/2019. The appeal was dismissed as infructuous.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The assessee contended that the tax effect involved was below the CBDT's prescribed limit of Rs. 50 lakhs.

What were the issues?

Whether an appeal filed by the Revenue is maintainable when the tax effect is below the monetary limit prescribed by the CBDT.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI B. R. R. KUMAR & SH. YOGESH KUMAR US

For Appellant: Shri Lalit Kishore, Sr. D.R.;
For Respondent: Shri Karan Kumra, C.A.;
Hearing: 23.05.2022Pronounced: 23.05.2022

ORDER PER YOGESH KUMAR US, JM

1.

This appeal is filed by the Revenue against the order dated 12.02.2019 of the ld. Commissioner of Income Tax (Appeals)–34, New Delhi [hereinafter referred to CIT (Appeals)] under Section 143(3) of the Income Tax Act, 1961 (the Act) for Assessment Year 2013-14.

2.

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.

3.

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.

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 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.

5.

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

Order pronounced in the open court on : 23/05/2022.

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