ACIT, CIRCLE- 17(2), NEW DELHI vs. NAVA HEALTHCARE PVT. LTD., NEW DELHI

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ITA 7695/DEL/2017Status: DisposedITAT Delhi28 July 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 held that the appeal of the Revenue deserved to be dismissed on account of low tax effect, as per CBDT Circular No. 17/2019 and its subsequent clarification. The circulars were binding on tax authorities and applied retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2012-13. The tax effect involved in the appeal was below the monetary limit prescribed by CBDT circulars for preferring appeals.

What were the issues?

The primary issue was the applicability of CBDT circulars prescribing monetary limits for appeals to the present case, and whether the appeal should be dismissed on grounds of low tax effect.

AI-generated summary — verify with the full judgment below

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

Before: MS SUCHITRA KAMBLE & SH. PRASHANT MAHARISHI

For Appellant: Ms. Pramita M. Biswas, CIT
Hearing: 28.07.2021Pronounced: 28.07.2021

ORDER

PER SUCHITRA KAMBLE, JM

1.

This appeal is filed by the Revenue against the order dated 31/10/2017 passed by CIT(A)-6, Delhi for assessment year 2012-13.

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.

In the result, appeal of the Revenue is dismissed.

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