DCIT CIRCLE-11(1), NEW DELHI vs. HALCROW CONSULTING INDIA PVT. LTD.,, NEW DELHI

The Ld. Counsel for Assessee submits that the Revenue effect in this appeal is less than Rs.50 lakhs. Referring to the consequential order dated 19.01.2021 passed by the AO giving effect to Ld. CIT(A) order it is submitted that the disputed addition

We have heard Ld. Representatives of both the parties and perused the order dated 19.01.2021 passed by AO giving effect to Ld. CIT(A) order. Admittedly, the tax effect in the Departmental appeal is less than Rs. 50 lakhs since the relief granted by the Ld. CIT(A) on account of TP adjustment was Rs.1,18,01,798/-. Vide Circular No. 3/18 dated 11.07.2018 issued by CBDT u/s 268A of the I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs. 20 lakhs. It is also directed that this Instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below this specified tax effect may be withdrawn/not pressed. The aforesaid circular has been amended by issuing further Circular No. 17/2019, whereby the monetary limit for filing Income-tax appeals before the Tribunal has been enhanced to Rs. 50 lakhs. Ld. DR in view of the above Board Circular did not press the Departmental appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the Departmental appeal is not maintainable as the appeal is filed

In the result, the Departmental appeal is dismissed.