What did the Tribunal hold?

The Tribunal held that the tax effect in the departmental appeal was less than Rs. 50 lacs. As no exceptions were brought to its notice, the appeal was not maintainable.

The Revenue filed an appeal before the ITAT. The CBDT Circular No. 17/2019 mandates that appeals shall not be filed if the tax effect does not exceed Rs. 50 lacs.

What were the issues?

Whether the departmental appeal is maintainable before the ITAT considering the monetary limit prescribed by the CBDT circular for filing appeals.

DCIT vs Hema Engineering Industries Ltd… | ITAT Delhi 2020

Income Tax Appellate Tribunal, DELHI BENCHES ‘Friday’, NEW DELHI

Before: Ms. Sushma ChowlaDr. B. R. R. Kumar

Hearing: 31.01.2020Pronounced: 04.02.2020

Per Dr. B.R.R. Kumar, Accountant Member:

The present appeal has been filed by the revenue against the order of ld. CIT (A)-4, New Delhi dated 30.11.2018.

According to Circular No. 17/2019 dated 08/08/2019, the CBDT in supersession of earlier instructions has directed that department’s appeals before ITAT shall not be filed in cases where the tax effect does not exceed the monetary limit of Rs. 50 lacs. The tax will not include any interest thereon. It is further clarified that even if in the case of an assessee, disputed issues arise in more than one assessment year, appeal cannot be filed in respect of such assessment year or years in which the tax effect in respect of disputed issues exceeds the monetary limit so specified.

Hema Engineering Industries Ltd. 3. Admittedly, in the departmental appeal, the tax effect is less than Rs. 50 lacs, therefore, departmental appeal is not maintainable. The Ld. DR could not bring to our notice any exceptions mentioned in the said Circular.

In the result, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 04/02/2020.

DCIT, CIRCLE-11(1), NEW DELHI vs. HEMA ENGINEERING INDUSTRIES LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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