ACIT, NEW DELHI vs. M/S. POONAM HASSIJA NEHA HASSIJA, NEW DELHI

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ITA 5545/DEL/2012Status: DisposedITAT Delhi28 July 2021AY 2009-103 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 filed by the Revenue were not maintainable due to low tax effect, as per CBDT Circular No. 17/2019 and its subsequent clarification. The appeals were dismissed in limine without considering the merits of the case.

What were the facts?

The Revenue filed appeals against the CIT(A) orders for assessment years 2008-09 and 2009-10. The tax effect involved in these appeals was below the monetary limit prescribed by CBDT Circular No. 17/2019.

What were the issues?

Whether the Revenue's appeals are maintainable before the Tribunal when the tax effect is below the prescribed monetary limit by CBDT circulars.

Which sections of the Income-tax Act were involved?

Circular No. 17/2019

AI-generated summary — verify with the full judgment below

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

Before: SHRI R. K. PANDA & MS SUCHITRA KAMBLE

Hearing: 28.07.2021Pronounced: 28.07.2021

Heard together (2 matters)

I.T.A. No. 4320/Del/2011
I.T.A. No. 5545/Del/2012

Read from the judgment's own cause title. This page is filed under one of them.

ORDER PER SUCHITRA KAMBLE, JM These two appeals are filed by the Revenue against order dated 14/07/2011 and 29/08/2012 passed by CIT(A)-XXIV, New Delhi for assessment year 2008-09 & 2009-10 respectively.

2.

At the outset, it was brought to our notice that the tax effect involved in this appeal being less than Rs. 50 lacs, squarely falls within the ambit of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue and subsequent clarification issued by CBDT on 20th August, 2019.

3.

After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019 for preferring appeals before Tribunal by the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We find that the subsequent clarification dated 20.08.2019 makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. The Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserve to be dismissed on account of low tax effect vide Circular No. 17/2019 dated 08.08.2019 and subsequent clarification on 20.08.2019. Accordingly, on account of low tax effect case, we dismiss this appeal of revenue in limine, without going into the merits of the case.

4. Though the matter is remanded back only for the issue of ground No. 4 to be decided afresh overall tax effect of the entire appeal is less than 50 lacs in both of these appeals. Therefore, we are taking up the issue of tax effect and not the issue of merit. As the directed by the Hon'ble High Court.

4.

In the result, the appeals of the Revenue are dismissed.

Order pronounced in the Open Court in presence of both the parties on this 28th Day of July, 2021.

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