JCIT, SPECIAL RANGE-1, NEW DELHI vs. AON SERVICES INDIA P.LTD, NEW DELHI

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ITA 2921/DEL/2018Status: DisposedITAT Delhi05 January 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 tax effect involved in the appeal was below Rs. 50 lakhs. Therefore, in view of the CBDT circular and its clarification, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition made under Section 14A. The assessee contended that the tax effect was below the monetary limit set by CBDT Circular No. 17/2019 for filing appeals.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal considering the low tax effect in light of CBDT Circular No. 17/2019.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “I-1”: NEW DELHI

Before: SHRI R.K. PANDA & SHRI KULDIP SINGH

For Appellant: Shri S.K. Agarwal, CA
For Respondent: Shri M. Barnwal, Sr. DR, Shri S.K. Agarwal, CA
Hearing: 05/01/2021

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.

2.

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.

4.

In the result, appeal filed by the Revenue is dismissed.

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