Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI
ORDER
PER ANIL CHATURVEDI, AM:
This appeal filed by the Revenue is directed against the order dated 16.10.2017 passed by the Commissioner of Income Tax (Appeals)-29, New Delhi relating to Assessment Year 2014-15.
Revenue has raised the following grounds of appeals: 1. “The Ld. CIT(A) has erred in law and in facts by deleting the addition made by the AO u/s 37(1) of the I.T. Act, 1961 without
ACIT vs. Landcraft Developers Pvt. Ltd. A.Y. 2014-15 2 appreciating the fact that assessee has estimated the shares at a very high value then the books value. 2. The Ld CIT(A) has erred by not appreciating the fact that the assessee has not valued the shares at discounted cash flow method as per standardized methodology which was done by AO. 3. That the grounds of appeal are without prejudice to each other.
4. That the appellant carves leave to add, amend, alter or forgo any gournd(s) of appeal either before or at the time hearing of the appeal.”
Before us, at the outset, Ld. A.R. submitted that in the impugned appeal of Revenue, the tax involved is less than the monetary limit of Rs.50 lakh and therefore, the appeal is not maintainable. Learned DR did not controvert the submissions made by Ld. A.R.
We have heard the both the parties and perused the material on record. On perusing the grounds of appeal raised by the Revenue, we find that Revenue is aggrieved by the order of Learned CIT(A) in respect of the relief given by him. We find that CBDT vide Circular No. 3/2018 dated 11.07.2018 had increased the limit for filing appeal before ITAT at Rs. 20 lakhs. The limit for filing appeals before ITAT and other authorities were enhanced by CBDT vide Circular No.17 of 2019 dated 08.08.2019. As per the aforesaid CBDT Circular dated 08.08.2019, no Department appeals are to be filed against relief given by the Learned CIT(A) before the Income Tax Appellate Tribunal unless the tax effect, excluding interest, exceeds Rs.50 lakhs. We find that in the present case, the tax effect involved is less than Rs.50 lakhs. In the absence of any material placed on record by the Revenue to ACIT vs. Landcraft Developers Pvt. Ltd. A.Y. 2014-15 3 demonstrate that the issue in the present appeal is covered by exceptions provided in para 10 of the aforesaid CBDT Circular of 11.07.2018, we are of the view that the monetary limit prescribed by the instructions of the CDBT Circular dated 08.08.2019 would be applicable to the present appeal of the Department. We therefore hold the present appeal of Revenue to be not maintainable on account of low tax effect. However, in case there is any error in the computation of the tax effect involved or if for any reason, the aforesaid CBDT Circular is not applicable, it would be open to the Revenue to seek revival of the appeal. Thus the appeal of the Revenue is dismissed.
In the result, the appeal of Revenue is dismissed.
Order pronounced in the open court on 16.03.2021, immediately after conclusion of the hearing of the matter in virtual mode.