What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable due to low tax effect as per CBDT Circular No. 17/2019. The circular directs the Revenue not to prefer appeals where the tax effect is less than Rs. 50,00,000/-.

The Revenue filed an appeal before the ITAT. The assessee requested dismissal of the appeal due to low tax effect, below the CBDT prescribed limit of Rs. 50 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by the CBDT.

DCIT vs Sadhna Media Pvt. Ltd, New Delhi | ITAT Delhi 2020

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

Before: MS. SUSHMA CHOWLA, VICE –SHRI PRASHANT MAHARISHI

For Appellant: Shri Arun Kumar;

For Respondent: Shri H.K. Choudhary, [CIT]–DR;

Hearing: 16.03.2020

IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “G” : NEW DLEHI ] BEFORE MS. SUSHMA CHOWLA, VICE – PRESIDENT A N D SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Assessment Year : 2013-14. Deputy CIT, M/s. Sadhna Media Pvt. Ltd. Central Circle : 32, Vs. 38 – Rani Jhansi Road, New Delhi. Jhandewalan, New Delhi–110055. PAN : AAHCS4532K (Appellant) (Respondent) Assessee by : Shri Arun Kumar; Department by : Shri H.K. Choudhary, [CIT]–DR; Date of hearing : 16.03.2020 Date of order : 18.03.2020 O R D E R PER PRASHANT MAHARISHI, A.M. :

ThIs appeal by the Revenue is filed against the order passed by the Commissioner of Income Tax (Appeals)-XXVI, New Delhi, for assessment year 2013-14.

At the time of hearing, the learned Counsel for the assessee submitted that tax effect involved in this appeal is below the prescribed limit of Rs.50 lakhs, as fixed by the CBDT and requested to dismiss the Revenue’s appeal on account of low tax effect.

Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.17/2019 dated 8th August, 2019 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.50,00,000/- and this factual position has been fairly conceded by the learned [CIT] – Departmental Representative.

We have heard both the parties and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised. In view of the CBDT Circular No.17/2019 dated 8th August, 2019 having retrospective effect as coordinate Bench of the Tribunal in case of Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019- TIOL-1556-ITAT-AHM dated 14th August, 2019 has already decided the issue as to the applicability of the captioned circular to the pending appeals in affirmative and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.50,00,000/- hence, the aforesaid appeal filed by the Revenue is hereby dismissed having been become infructuous. However, in case, the present appeal is found to be maintainable at any stage for any technical reasons, the Department shall be at liberty to seek recall of this order under relevant provisions of law.

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

DCIT, CENTRAL CIRCLE- 32, NEW DELHI vs. SADHNA MEDIA PVT. LTD, NEW DELHI

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