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Income Tax Appellate Tribunal, DELHI BENCH “I-1”: NEW DELHI
Before: SHRI R.K. PANDA & SHRI KULDIP SINGH
This appeal filed by the revenue is directed against the order dated 28th February, 2018 of Ld. CIT(A)-44, New Delhi relating to assessment year 2013-14.
Ld. Counsel for the assessee at the outset submitted that the revenue has challenged the order of the Ld. CIT(A) in deleting the addition of Rs. 34,54,000/- made by the AO on account of disallowance u/s 14A read with rule 8D. He submitted that the tax effect of the issue raised by the revenue in the grounds of appeal is admittedly below Rs. 50 lakhs. Therefore, in view of the recent CBDT Circular No. 17/2019 dated 8th August, 2019 the appeal filed by the revenue is not maintainable. Ld. Sr. DR fairly conceded that the tax effect involved in the grounds raised by the revenue is below Rs. 50 lakhs. He however, submitted that the CBDT circular is not applicable to the present case.
3. After hearing both the sides we find the tax effect involved in the grounds raised
by the revenue is admittedly below Rs. 50 lakhs. Therefore, in view of Circular No. 17/2019 dated 8th August, 2019 issued by the CBDT raising the monetary limit to Rs. 50 lakhs for filing of appeals by the revenue before the Tribunal and subsequent clarification dated 20th August, 2019 that the above circular applies even to the pending appeals, the appeal filed by the revenue is not maintainable. Accordingly the appeal filed by the revenue is dismissed on account of low effect.
4. However if the revenue at any point of time finds that tax effect involved in the grounds raised by the revenue is more than Rs. 50 lakhs the revenue is at liberty to move appropriate application for revival of the appeal.
In the result, appeal filed by the Revenue is dismissed.