ACIT, CENTRAL CIRCLE- 3, NEW DELHI vs. BRIJ BHUSHAN SINGAL, NEW DELHI

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ITA 1599/DEL/2018Status: DisposedITAT Delhi22 February 2021AY 2010-113 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 due to the low tax effect, as per the CBDT circular. The circular was applicable to all pending appeals.

What were the facts?

The Revenue filed an appeal before the ITAT. The CBDT had issued a circular enhancing the monetary limit for filing appeals to Rs. 50 lakhs. The tax effect in this appeal was below the enhanced limit.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the tax effect and the prevailing CBDT circular on monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 132

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘A’ BENCH,

Before: SHRI AMIT SHUKLA, & SHRI O. P. KANT

Hearing: 22.02.2021Pronounced: 22.02.2021
1.

This appeal by the revenue is directed against the order dated 30.12.2016 passed by the Assessing Officer u/s. 132 of the income Tax Act, 1961 for assessment year 2010-11.

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.

ced in the open court on 22nd February, 2021 Order pronoun Order pronounced in the open court on Order pronoun Order pronoun ced in the open court on ced in the open court on February, 2021 February, 2021 February, 2021

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