DCIT, CIRCLE-16(1), NEW DELHI vs. MARK EXHAUST SYSTEMS LTD, NEW DELHI

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ITA 4362/DEL/2018Status: DisposedITAT Delhi09 August 2021AY 2012-133 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 decided that the Revenue's appeal should be dismissed as non-maintainable due to the tax effect being below the enhanced monetary limit. The Department can file a Miscellaneous Application if the tax effect exceeds the limit.

What were the facts?

The Revenue filed an appeal before the ITAT. The learned DR brought to the Tribunal's attention a CBDT circular enhancing the monetary limit for filing appeals. The assessee was not present.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the CBDT's revised monetary limits for filing appeals before the Tribunal.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

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

Before: SHRI O.P. KANT & SHRI K.N. CHARY

Hearing: 09.08.2021Pronounced: 09.08.2021

ORDER PER O.P. KANT, AM:

The present appeal by the Revenue is directed against the order dated 28.02.2018 passed by Commissioner of Income-tax (Appeals)-33, New Delhi, for assessment year 2012-13. 2. At the outset, the learned DR 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.

3.

None present for the assessee. We have heard learned DR through Video Conferencing and perused the relevant record. We find that the CBDT vide Circular No. 17/2019 dated 08.08.2019, has enhanced the monetary limit for filing of appeals by the Department before the Income Tax Appellate Tribunal from Rs.20 lakhs to Rs.50 lakhs. The said circular also makes reference to the earlier Circular No. 3/2018, dated 11.7.2018 and, especially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier circular. This, inter alia, means that all the other conditions mentioned in the earlier Circular No. 3 of 2018 dated 11.7.2018 will apply mutatis mutandis including that, it will apply to all the pending appeals.

4.

Further, CBDT vide Circular dated 20th August, 2019 (F. No. 279/19-93/2018-ITJ), has clarified that it will apply to all pending appeals. Thus, in view of the aforesaid circular, the appeal of the Revenue is dismissed as non-maintainable as the tax effect involved in the appeal is below Rs.50 lakhs. However, it is made clear that the Department is at liberty to file Miscellaneous Application for recalling of the order, if the tax effect is found to be more than the prescribed limit of Rs.50,00,000/- or any of the conditions etc., as available in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out.

5.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court.

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