ACIT, CIRCLE PANIPAT, HARYANA vs. MITTAL PROCESSORS PVT. LTD., PANIPAT

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ITA 6466/DEL/2017Status: DisposedITAT Delhi02 March 2021AY 2013-143 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 was not maintainable as the tax effect was below the enhanced monetary limit of Rs. 50 lakhs prescribed by the CBDT circular. The circular was applicable to all pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT for assessment year 2013-14. The Revenue's representative brought to the Tribunal's attention a CBDT circular enhancing the monetary limit for filing appeals.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the Tribunal given the revised monetary limits for appeals stipulated by the CBDT.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,

Before: SHRI KUL BHARAT & SHRI O.P. KANT

Hearing: 25.02.2021Pronounced: 02.03.2021
1.

This appeal by the Revenue is directed against common order dated 18.08.2017 passed by Commissioner of Income-tax (Appeals), Karnal, for assessment year 2013-14.

2.

At the outset, the learned Sr. DR brought to our attention that CBDT, vide Circular No. 17/2019 dated 08th August, 2019, has decided that the Revenue would not prefer any appeal before the Tribunal, if the tax effect is less than Rs.50 lakhs. Therefore, he 1 pleaded that the appeal of the Revenue be decided as per the Instruction of the CBDT.

3.

We have heard both the parties through Video Conferencing and perused the relevant record. We find that the CBDT vide Circular No. 17/2019 dated 08.08.2019, has enhanced the monetary limit for filing of appeals by the Department before the Income Tax Appellate Tribunal from Rs.20 lakhs to Rs.50 lakhs. The said circular also makes reference to the earlier Circular No. 3/2018, dated 11.7.2018 and, especially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier circular. This, inter alia, means that all the other conditions mentioned in the earlier Circular No. 3 of 2018 dated 11.7.2018 will apply mutatis mutandis including that, it will apply to all the pending appeals.

4.

Further, CBDT vide Circular dated 20th August, 2019 (F. No. 279/19-93/2018-ITJ), has clarified that it will apply to all pending appeals. Thus, in view of the aforesaid circular, the appeals of the Revenue are dismissed as non-maintainable as the tax effect involved in the appeals are below Rs.50 lakhs. However, it is made clear that the Department is at liberty to file Miscellaneous Application for recalling of the order, if the tax effect is found to be more than the prescribed limit of Rs.50,00,000/- or any of the conditions etc., as available in the amendment carried out in para 10 of Circular No. 3/2018, dated 20.08.2018, is made out.

5.

In the result, the appeal of Revenue is dismissed.

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