ACIT, CIRCLE-7(1), NEW DELHI vs. DELHI STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LTD., NEW DELHI

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ITA 3589/DEL/2019Status: DisposedITAT Delhi08 December 2021AY 2012-134 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 noted that the CBDT Circular No. 17/2019 fixed the monetary limit for filing appeals before the ITAT at Rs. 50,00,000/-. Since the tax effect in the present appeal was below this limit, it was not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee's counsel pointed out that the tax effect involved in the appeal was below the monetary limit prescribed by the CBDT for filing appeals.

What were the issues?

Maintainability of the appeal before the ITAT due to the tax effect being below the prescribed monetary limit set by CBDT circulars.

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 G.S PANNU & SHRI RAVISH SOOD

For Appellant: Shri. Shobhit Kansal, A.R
For Respondent: Shri Sumit Kumar Varma, CIT D.R, Shri. Shobhit Kansal, A.R
Hearing: 08/12/2021Pronounced: 08/12/2021

ORDER PER RAVISH SOOD, J.M : The present appeal filed by the revenue is directed against the order passed by the CIT(A)-3, New Delhi, dated Nil, which in turn arises from the order passed by the A.O u/s 143(3) of the Income-tax Act, 1961 (for short ‘Act’), dated 27.02.2015 for A.Y. 2012-13.

2.

Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by the Department before the ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation.

3.

CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before the Income Tax Appellate Tribunal (ITAT) in cases where the tax effect does not exceed the monetary limit of Rs.20,00,000/-. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, ‘tax effect’ shall be taxes including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against.

At para 13 of the above Circular, it has been mentioned that:

“13. This Circular will apply to SLPs/appeals/cross objection/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.”

4.

As a step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed the monetary limit for filing of appeals before ITAT at Rs.50,00,000/-.

5.

In the instant appeal filed by the Department, the tax effect involved is below the monetary limit of Rs.50,00,000/-. The said fact as was brought to our notice by the Ld. Counsel for the assessee was confronted to the Ld. Departmental Representative (D.R), who did not controvert the aforesaid claim of the assessee’s counsel that the appeal in hand pursuant to the monetary ceiling fixed by the CBDT Circular No. 17/2019 was not maintainable.

6.

With the above observations, the appeal involving tax effect of less than Rs.50,00,000/- is dismissed.

Order pronounced in the open Court on 08/12/2021.

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