DCIT, CIRCLE- 2, MEERUT vs. ROMI SHIV, MEERUT

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ITA 3899/DEL/2017Status: DisposedITAT Delhi15 September 2020AY 2012-133 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 specified in CBDT Circular No. 17/2019. This circular applies to pending appeals.

What were the facts?

The Assessing Officer filed an appeal against a deletion of tax by the CIT(A). The tax effect involved in the appeal was Rs. 43,04,362/-. The revenue's appeal was filed before the ITAT.

What were the issues?

Whether CBDT Circular No. 17/2019, enhancing monetary limits for appeals, applies to pending appeals before the ITAT. Whether the appeal is maintainable given the tax effect is below the specified limit.

Which sections of the Income-tax Act were involved?

Section 250,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Ms. Rakhi Vimal, Sr. DR
For Respondent: Shri Vinod Kr. Goel, Adv
Hearing: 15/09/2020Pronounced: 15/09/2020

O R D E R PER AMIT SHUKLA, J. M.

1.

This appeal is filed by the Id Assessing Officer against the order of the Id CIT(A)-Meerut dated 24.03.2017 for the Assessment Year 2012-13 wherein the tax computed u/s 250 of the Income Tax Act, 1961 of Rs. 43,04,362/- levied by the Id Assessing Officer was deleted. Thus, the tax effect involved in this appeal is only Rs. 43,04,362/-.

2.

At the time of hearing it was found that case of the revenue is covered by the Circular of CBDT on low tax effect which applies to the pending appeals also.

3.

We have heard the contention of rival parties and perused the material on record. We find that the CBDT vide Circular No. 17/2019 dated 08th August 2019 has enhanced the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is reproduced as under :-

“2. As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows:

S.No. Appeals/SLPs in Income-tax Monetary Limit (Rs.) matters 1. Before Appellate Tribunal 50.00,000 2. Before High Court 1.00.00.000 3. Before Supreme Court 2.00,00.000 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed, para 5 of the circular is substituted by the following para: "5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee. the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary' limit specified in para 3. No appeal shall be filed in respect of an assessment year or y ears in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately.”

4. The said modifications shall come into effect from the date of issue of this Circular.

5.

The same may be brought to the notice of all concerned.

6.

This issues under section 268A of the Income-tax Act, 1961.”

4.

We find that the tax effect involves in the appeal of the Revenue is below Rs. 50 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of Rs. 50 lakhs.

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