What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable due to the low tax effect, in line with the CBDT circular. The appeal was dismissed as withdrawn/not pressed.

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The assessee pointed out that the tax effect was below Rs. 50 Lakhs, making the appeal not maintainable as per CBDT Circular No. 17/2019.

What were the issues?

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

ITO vs Smt. Vandana Sethi, New Delhi | ITAT Delhi 2021

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

Before: SHRI R.K. PANDA & SHRI SUDHANSHU SRIVASTAVA

Hearing: 23.03.2021Pronounced: 23.03.2021

ORDER PER R.K. PANDA, AM :

This appeal filed by the Revenue is directed against the order dated 30.12.2016 of the learned CIT(A)-10, New Delhi, relating to Assessment Year 2013-14.

Learned counsel for the assessee at the outset, pointed out that the tax effect involved in the present appeal, filed by the Revenue, is below Rs.50 Lakhs. Therefore, in view of the latest CBDT Circular No.17/2019 dated 08.08.2019, raising the monetary limit to Rs.50 Lakhs for filing appeal by the Revenue which is even applicable to all pending appeals, the appeal filed by the Revenue is not maintainable and has to be dismissed.

Learned DR fairly conceded that the tax effect involved in the appeal filed by the Revenue is below Rs.50 Lakhs.

The CBDT vide Circular No.17/2019 dated 08.08.2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lacs.

Further, CBDT vide letter dated 20.08.2019 has also clarified that Circular No.17/2019 would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue in case of low tax effect is not maintainable.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11.07.2018.

In conclusion, by applying the CBDT Circular dated 08.08.2019 and letter dated 20.08.2019 (supra), the captioned appeal of the Revenue is dismissed as withdrawn/not pressed.

In the final result, the appeal of the Revenue stands dismissed.

Above decision was pronounced in the open court in the presence of both the parties on conclusion of Virtual Hearing on 23rd March, 2021.

ITO, NEW DELHI vs. SMT. VANDANA SETHI, NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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