DCIT, CIRCLE- 16(2), NEW DELHI vs. MCCAIN FOODS (INDIA) PVT. LTD., NEW DELHI

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ITA 5702/DEL/2018Status: DisposedITAT Delhi02 November 2021AY 2011-123 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 appeals were not maintainable due to a low tax effect, as per CBDT Circular No. 17/2019. The appeals were dismissed on this ground.

What were the facts?

The Department filed appeals against the CIT(A)'s orders for AY 2010-11 and 2011-12. The appeals were noted to have a low tax effect.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the Tribunal in light of the monetary limit prescribed by CBDT Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

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

Before: SHRI AMIT SHUKLA & Dr. B.R.R. KUMAR

For Appellant: Shri K.M. Gupta, Adv
Hearing: 2.11.2021Pronounced: 2.11.2021

Both appeals by the department against the order dated 29/06/2018 of CIT(A)-44, New Delhi for AY 2010-11 & 2011-12 respectively.

2.

Perusal of the aforesaid appeals filed by the Revenue apparently shows that the same is having low tax effect as per CBDT Circular No.17/2019 dated 8th August, 2019 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.50,00,000/- and this factual position has been fairly conceded by the Ld. D.R. The Ld. A.R. contended that both appeals of the Revenue may be dismissed in the light of CBDT Circular (supra).

3.

We have heard the parties on the issue in controversy and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised. In view of the CBDT Circular No.17/2019 dated 8th August, 4.

2019 having retrospective effect as coordinate Bench of the Tribunal in case of Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14th August, 2019 has already decided the issue as to the applicability of the captioned circular to the pending appeals in affirmative and what has been discussed above, we are of the considered view that the aforesaid appeals are not maintainable because of low tax effect i.e. less than Rs.50,00,000/- hence, the aforesaid appeals filed by the Revenue are hereby dismissed having been become infructuous.

However, in case, the present appeals are found to be maintainable at any stage for any technical reasons, the Department shall be at liberty to seek recall of this order under relevant provisions of law. Order pronounced in open court on this 2nd day of November, 2021.

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