ITO, NEW DELHI vs. M/S NORMA STEEL & ALLOYS (P) LTD., NEW DELHI

(A) This appeal by Revenue is filed against the order of Learned Commissioner of Income Tax (Appeals)-38, New Delhi, [“Ld. CIT(A)”, for short], dated 01.02.2017 for Assessment Year 2006-07. Grounds taken in this appeal of Revenue are as under:

“1. Whether on facts and circumstances of the case, the Ld. CIT(A) is legally justified in quashing the re-assessment proceedings u/s 148 of the Income Tax Act, 1961 (the Act) by holding that the Assessing Officer (the AO) had obtained prior approval of competent authority u/s 151(1) of the Act even when the AO had a bonafide belief that an order u/s 143(3) of the Act was not passed before issuing notice u/s 148 of the Act and also assessee could not substantiate its claim that order u/s 143(3) of the Act had already been passed in this case? 2. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in quashing the re-assessment proceedings u/s 148 of the Act by accepting claim and documents filed by the assessee during appellate proceedings in this regard even when the assessee had not fulfilled conditions as laid down under Rule 46A of the Income Tax Rule, 1961 (the Rule) and without providing opportunity of being heard to the AO? 3. That the appellant craves leave to add, alter, amend or forego any ground(s) of the appeal raised above at the time of the hearing.

(B) At the outset, we noticed at the time of hearing that tax effect in this appeal is below Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal (“ITAT”, for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. In view of the foregoing, this appeal is not maintainable. Having regard to the aforesaid, the Ld. Sr. DR for Revenue did not press the appeal. Therefore, this appeal is dismissed being not pressed and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.

(C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of this appeal if it is found that appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

(D) In the result, this appeal by Revenue is dismissed.

Order is pronounced in Open Court on 2nd day of November, 2020.