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

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ITA 5260/DEL/2019Status: DisposedITAT Delhi11 May 2022AY 2014-153 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 Departmental appeal was not maintainable due to the low tax effect, as per the CBDT circulars. The Revenue's counsel did not press the appeal.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee pointed out that the tax effect in the appeal was less than Rs. 50 lakhs, which is the monetary limit for filing appeals as per CBDT circulars.

What were the issues?

Whether the Departmental appeal is maintainable before the Tribunal when the tax effect is below the prescribed monetary limit set by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “I-1” NEW DELHI

Before: SHRI G.S. PANNU, HON’BLE & SHRI CHALLA NAGENDRA PRASAD

Hearing: 11.05.2022

Revenue by Shri Mrinal Kumar Das, Sr. DR Assessee by Ms. Ananya Kapoor, Adv. सुनवाईक�तारीख/ Date of hearing: 11.05.2022 11.05.2022 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R PER C.N. PRASAD, J.M.

This appeal by Revenue has been directed against the order of Ld. CIT(Appeals)-44, New Delhi dated 20.03.2019 for AY 2014-15.

2.

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

I.T.A.No.5260/Del/2019/A.Y.2014-15 in the Revenue’s appeal is Rs.1,18,01,798/- on which the tax effect is less than Rs.50 lakhs.

3.

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

I.T.A.No.5260/Del/2019/A.Y.2014-15 against the Board Instruction referred to above and, therefore, the appeal of the Department is liable to be dismissed.

4.

In the result, the Departmental appeal is dismissed.

Order pronounced in the open court on 11.05.2022

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