DCIT, CENTRAL CIRCLE- 14, NEW DELHI vs. NAGESHWAR REALTORS (P) LTD., NEW DELHI

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ITA 2938/DEL/2019Status: DisposedITAT Delhi18 February 2020AY 2007-084 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 appeals of the Revenue were to be dismissed due to low tax effect, as per the binding CBDT Circular and its subsequent clarification. The cross-objections filed by the assessees were rendered infructuous.

What were the facts?

The Revenue filed appeals before the ITAT, and the assessees filed cross-objections. The tax effect in these appeals was below the threshold prescribed by CBDT Circular No. 17/2019.

What were the issues?

The primary issue was whether the Revenue's appeals should be dismissed on the grounds of low tax effect as per the applicable CBDT circulars.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI

Before: SHRI R. K. PANDA & MS SUCHITRA KAMBLE

For Appellant: Smt. Sushma Singh, CIT DR
Hearing: 30.01.2020Pronounced: 18.02.2020

ORDER PER SUCHITRA KAMBLE, JM These appeals and cross objection are filed by the Revenue and the respective assessee against orders dated 19.02.2016 for A.Y. 2005-06, 18.01.2016 for A.Y. 2007-08, 14.03.2016 for A.Y. 2007-08, 17/02/2016 for A.Y. 2008-09 and 23.01.2019 for A.Y. 2007-08 passed by the Commissioner of Income Tax (Appeals)- XXVI, New Delhi.

2.

At the outset, it was brought to our notice that the tax effect involved in these appeals being less than Rs. 50 lacs, squarely falls within the ambit of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue and subsequent clarification issued by CBDT on 20th August, 2019.

3.

After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, Ld. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We find that the subsequent clarification dated 20.08.2019 makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. The Circular is binding on the tax authorities. Hence, we hold that the appeals of the revenue deserve to be dismissed on account of low tax effect vide Circular No. 17/2019 dated 08.08.2019 and subsequent clarification on 20.08.2019. Accordingly, on account of low tax effect case, we dismiss these appeals of revenue in limine, without going into the merits of the case. As regards to the cross objection filed by the respective assessee, the same becomes infructuous, hence dismissed.

4.

In the result, appeals of the Revenue and cross objection of the assessee are dismissed.

Order pronounced in the Open Court on 18th February, 2020.

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