ITO, WARD-4, KARNAL vs. SHYAM JEE LUMBERS P.LTD, KARNAL

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ITA 2659/DEL/2019Status: DisposedITAT Delhi10 May 2022AY 2014-154 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 dismissed the Revenue's appeal as not maintainable because the tax effect was below the monetary limit of Rs. 50 lakhs as per CBDT Circular No. 17/2019. The Revenue can approach for recall if the tax effect is higher or protected by exceptions.

What were the facts?

The Revenue filed an appeal before the ITAT for the assessment year 2014-15. The assessee's counsel pointed out that the tax effect involved in the appeal was below the monetary limit prescribed by CBDT Circular No. 17/2019.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the ITAT given the tax effect was below the prescribed monetary limit.

Which sections of the Income-tax Act were involved?

CBDT Circular No. 17/2019

AI-generated summary — verify with the full judgment below

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

Before: SHRI ANIL CHATURVEDI & SHRI YOGESH KUMAR U.S.

For Appellant: Ms. Supriya Mehta, CA
For Respondent: Shri Sanjay Tripathi, Sr. DR, Ms. Supriya Mehta, CA
Hearing: 05.05.2022Pronounced: 10.05.2022

PER YOGESH KUMAR U.S., JUDICIAL MEMBER:

1.

The present appeal is preferred by the Revenue for the assessment year 2014-15 against order dated 28.01.2019, passed by the Commissioner of Income-Tax(Appeals), Karnal.

2.

At the outset, learned counsel for the assessee submitted that the tax effect involved in the appeal of the Revenue is below Rs. 50 lakhs. In support of his contention the learned counsel has also filed ‘tax effect calculation’ as reproduced below:

Particulars Amount (in Rs.) Returned income 1,40,00,000 Additions made in the assessment 1,40,00,000 Assessed income

Disputed amount before Hon’ble Tribunal 1,40,00,000 Tax on above addition @ 32.44% 45,42,300 Tax effect 45,42,300

3.

Learned counsel submitted that the tax effect involved in the grounds raised by the Revenue being less than Rs. 50,00,000/-, the appeal of the Revenue is not maintainable in view of the CBDT Circular No. 17/2019 dated 8th August, 2019, revising the monetary limit for filing of the departmental appeals to the ITAT at Rs. 50 lakhs.

4.

The learned Sr. DR could not dispute the aforesaid factual position that the tax effect involved in the instant appeal is less than Rs. 50 lakhs.

5.

In view of the above factual position, the tax effect involved in the appeal being less than Rs. 50 lakhs, we deem it proper to dismiss the appeal of the Revenue in the light of the CBDT Circular No. 17/2019 dated 8th August, 2019, as not maintainable. However, if on a later date, the Revenue finds that the tax effect in dispute in the aforesaid appeal is more than the limit prescribed or it is protected by any of the exceptions provided in the CBDT Circular, it shall be at liberty to approach the Tribunal for recall of the order and reinstitution of the appeal for adjudication on merits. The Tribunal shall consider such application, as

per the extant law.

6.

In the result, in view of the aforesaid discussion, the Revenue’s appeal stands dismissed.

Order pronounced in the open court on 10th May, 2022.

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