DCIT, CIRCLE-16(1), NEW DELHI vs. MARUTI SUZUKI INDIA LTD., NEW DELHI

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ITA 7685/DEL/2018Status: DisposedITAT Delhi01 December 2021AY 2007-083 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 appeal filed by the Revenue. This was based on the Revenue's submission that the appeal was to be withdrawn due to a low tax effect, falling below the revised monetary limit set by CBDT circulars.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The appeal was for the assessment year 2007-08 and concerned grounds related to investment and interest expense.

What were the issues?

The primary issue was the maintainability of the appeal before the Tribunal given the low tax effect, as per the revised monetary limits prescribed by CBDT circulars.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “E” BENCH: NEW DELHI

Before: SHRI KUL BHARAT & SHRI P.K.KEDIA

For Appellant: Ms. Sarita Kumari, CIT DR
For Respondent: Shri Ajay Vohra, Sr.Adv, Shri Rohit Jain, Adv. &, Ms. Somya Jain, CA
Hearing: 01.12.2021Pronounced: 01.12.2021

ORDER PER KUL BHARAT, JM :

This appeal filed by the Revenue for the assessment year 2007-08 is directed against the order of Ld. CIT(A)-6, Delhi dated 10.09.2018. The Revenue has raised following grounds of appeal:-

1. " The Ld.CIT(A) has erred in limiting the investment to only the investment which yield dividend income.

2. The Ld.CIT(A) has erred in allowing the interest expense by observing that the assessee has its own fund. 3. That the appellant craves leave to add, amend, alter or forgo any grounds of appeal either before or at the time of hearing of the appeal.”

2.

However, Ld. CIT DR for the Revenue pointed out that the present appeal is to be withdrawn as the tax effect involved in the case is below Rs.50 Lacs.

3.

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.

4.

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.

5.

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 as withdrawn/not pressed.

6.

In the result, the appeal of Revenue is dismissed.

Order pronounced in the open Court on 01st December, 2021.

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