What did the Tribunal hold?

The Tribunal held that the appeals filed by the Revenue were not maintainable due to the low tax effect, as per the CBDT circulars. Consequently, the assessee's cross-objection was also dismissed as infructuous.

The Revenue filed appeals before the ITAT for assessment years 2009-10 and 2011-12. The assessee argued that the tax effect in these appeals was below the revised monetary limit of Rs. 50 lakhs set by CBDT circulars for filing appeals.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the ITAT based on the monetary limit prescribed by CBDT circulars for tax effect.

ACIT vs M/S Bbc World Service India Pvt… | ITAT Delhi 2021

Income Tax Appellate Tribunal, DELHI BENCH : I-1 : NEW DELHI

Before: SHRI R.K. PANDA & SHRI AMIT SHUKLA

For Appellant: Shri Atul Jain & Shri Arpan Khanna, CAs

For Respondent: Shri Surender Pal, CIT, DR

Hearing: 28.04.2021Pronounced: 28.04.2021

Heard together (2 matters)

CO No.103/Del/2017

ITA No.1241/Del/2017

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

ORDER PER BENCH: filed by the Revenue is directed against the order dated 18th March, 2016 of the CIT(A)-42, New Delhi, relating to assessment year 2009-10. ITA No.1241/Del/2017 filed by the Revenue is directed against the order dated 5th December, CO No.103/Del/2017 2016 of the CIT(A)-19, New Delhi, relating to the assessment year 2011-12. The assessee has filed the CO No.103/Del/2017 against the appeal filed by the Revenue for A.Y. 2011-12. For the sake of convenience, these were heard together and are being disposed of by this common order.

The ld. counsel for the assessee, at the outset, submitted that the tax effect involved in the grounds raised by the Revenue in the above two appeals are below Rs.50 lakhs. Therefore, in view of the recent CBDT Circular No.17/2019 dated 8th August, 2019, raising the monetary limit for filing of the appeal by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification of the CBDT, vide Notification dated 20th August, 2019 stating that the said Circular is applicable even to pending appeals, the appeals filed by the Revenue are not maintainable on account of low tax effect.

The ld. DR, on the other hand, fairly conceded that the tax effect involved in the grounds raised by the Revenue in both these appeals are below Rs.50 lakhs.

After hearing both the sides, we find the tax effect involved in the grounds raised

by the Revenue in the above two appeals are admittedly below Rs.50 lakhs. Therefore, in view of the CBDT Circular No.17/2019 dated 8th August, 2019 raising the monetary limits for filing of the appeals by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification dated 20th August, 2019 to the effect that the said Circular is applicable even to pending appeals, the appeasl filed by the Revenue are not maintainable. Accordingly, the same are dismissed. CO No.103/Del/2017

5. However, if the Revenue at any point of time finds that the tax effect involved in the grounds of the Revenue is more than Rs.50 lakhs or that the same is falling under the exceptions provided in the said Circular, the Revenue may move necessary application for recall of this order.

Since the appeal filed by the Revenue in is dismissed on account of low tax effect, the CO No.103/Del/2017 becomes infructuous and accordingly the same is dismissed.

In the result, both the appeals filed by the Revenue and CO filed by the assessee are dismissed. The decision was pronounced in the open court on 28.04.2021.

ACIT, NEW DELHI vs. M/S BBC WORLD SERVICE INDIA PVT. LTD., NEW DELHI

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