AO, NEW DELHI vs. SMT. JYOTI LIMBOO, NEW DELHI

ITSSA 23/DEL/2008Status: DisposedITAT Delhi29 March 20232 pages

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable. The Tribunal noted that CBDT Circular No. 17/2019, dated 08.08.2019, revised the monetary limit for filing appeals before the Tribunal to Rs. 50 lakhs. Furthermore, a subsequent clarification via a letter dated 20.08.2019 confirmed that Circular No. 17/2019 would apply to all pending appeals. Consequently, given the low tax effect of the present appeal, it was deemed not maintainable. The Tribunal clarified that the Revenue could seek re-institution of the appeal if material demonstrating that it falls under the exceptions prescribed in paragraph 10 of the Circular dated 11.07.2018 was provided. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, against an order of the CIT(Appeals)-III, New Delhi, dated 17.03.2006. The appeal pertained to the block period 01.04.1989 to 23.06.1999. During the hearing, the assessee's counsel brought to the Tribunal's attention CBDT Circular No. 17/2019 dated 08.08.2019, which stipulated that the Revenue would not prefer appeals before the Tribunal if the tax effect was less than Rs. 50 lakhs. The assessee requested that the appeal be decided in accordance with this circular. The Revenue's counsel did not object to this proposition.

What were the issues?

1. Whether the Revenue's appeal is maintainable before the Tribunal in light of CBDT Circular No. 17/2019, which sets a monetary limit for appeals. Assessee's Contention: The assessee argued that CBDT Circular No. 17/2019 dated 08.08.2019 mandates that the Revenue should not file appeals before the Tribunal if the tax effect is below Rs. 50 lakhs. Therefore, the present appeal, presumably having a low tax effect, should be dismissed as per this instruction. Revenue's Contention: The Revenue's counsel did not object to the assessee's submission regarding the applicability of CBDT Circular No. 17/2019 and did not present any counter-arguments.

AI-generated summary — verify with the full judgment below

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

Before: SHRI SHAMIM YAHYA & Ms. ASTHA CHANDRA

For Appellant: CA &

For Respondent: Ms. Sarita Kumari CIT-DR, CA &

Hearing: 29.03.2023Pronounced: 29.03.2023

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘E’: NEW DELHI

BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER

IT(SS)A No.23/DEL/2008 [Block Period:- 01.04.1989 to 23.06.1999]

ACIT, Smt. Jyoti Limboo, Central Circle-4, Vs Prop. M/s Jyoti Limboo & Co. New Delhi 118, Subba Farms, Village Sultanpur, Mehrauli Guraon Raod, New Delhi PAN-AAAPL9581B Revenue Assessee

Revenue by Ms. Sarita Kumari CIT-DR Assessee by Sh. R.S. Singhvi, CA & Sh. Satyajeet Goel, CA

Date of Hearing 29.03.2023 Date of Pronouncement 29.03.2023 ORDER PER SHAMIM YAHYA, AM,

This appeal by the Revenue is directed against the order of ld. CIT

(Appeals)-III, New Delhi, dated 17.03.2006 and pertains to block Year

01.04.1989 to 23.06.1999.

At the outset, at the time of hearing, the ld. Counsel for the assessee

brought to our attention that CBDT vide Circular No. 17/2019 dated 08th

August 2019 has decided that the revenue would not prefer any appeal

before the Tribunal if the tax effect is less than Rs. 50 lakhs. Therefore, he

pleaded that the appeal of the revenue be decided as per the Instruction of

the CBDT.

The Ld. CIT-DR did not object the above proposition.

2 IT(SS)A NO.23/DEL/2008

Upon careful consideration, we find that 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. In such circumstances, the present

appeal filed by the Revenue in case of low tax effect is not maintainable.

Before parting, we clarify here that the Revenue shall be at

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.

In conclusion, by applying the CBDT Circular dated 08.08.2019

and letter dated 20.08.2019 (supra), the captioned appeal of the Revenue

is dismissed.

In the final result, the appeal of the Revenue stands dismissed.

Order pronounced in the open court on 29th March, 2023.

Sd/- Sd/- [ASTHA CHANDRA] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER

Delhi; Dated: 29.03.2023. f{x~{tÜ? f{x~{tÜ? f{x~{tÜ? f{x~{tÜ? Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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