ACIT, NEW DELHI vs. M/S ANADI MERCANTILE PVT. LTD., NEW DELHI

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ITA 4228/DEL/2016Status: DisposedITAT Delhi28 January 2020AY 2012-134 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 departmental appeal was not maintainable due to the low tax effect, as per CBDT Circulars. The Revenue's appeal was therefore dismissed.

What were the facts?

The Revenue filed an appeal against the deletion of penalty by the CIT(A). The tax effect of the appeal was less than Rs. 50 lakhs, which is the revised monetary limit for departmental appeals to the Tribunal.

What were the issues?

Whether the departmental appeal is maintainable before the Tribunal given the tax effect and the prevailing CBDT Circulars regarding monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “A”: DELHI

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

Hearing: 28.01.2020Pronounced: 28.01.2020

PER BHAVNESH SAINI, J.M. This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-I, New Delhi, Dated 24.05.2016 for the A.Y. 2012-2013, challenging the deletion of penalty of Rs.26,00,000/- imposed under section 271(1)(c) of the I.T. Act, 1961.

2 ITA.No.4228/Del./2016 M/s. Anadi Mercantile Pvt. Ltd., New Delhi.

2.

Admittedly, the tax effect in the Departmental Appeal is less than Rs.50 lakhs. Vide Circular No.3/2018 Dated 11th July, 2018 issued by CBDT under section 268A of the I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. The CBDT Vide Circular No.17/2019 Dated 08.08.2019 amended the earlier Circular No.3/2018 (supra) whereby it has been directed that monetary limit for filing the Departmental appeal in Income Tax Cases may be enhanced further through this amendment in para-3 of the Circular mentioned above and accordingly, the monetary limit for filing the appeal before the Appellate Tribunal have been enhanced to Rs.50 lakhs. Since Circular No.17/2019 Dated 08.08.2019 have been issued to amend its earlier

1.

3 ITA.No.4228/Del./2016 M/s. Anadi Mercantile Pvt. Ltd., New Delhi. Circular No.3/2018 (supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly.

3.

The Ld. D.R. in view of the above Board’s Circulars did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circulars. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.

4.

In the result, appeal of the Department dismissed.

Order pronounced in the open Court.

Sd/- Sd/- (PRASHANT MAHARISHI) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi, Dated 28th January, 2020 VBP/-

4 ITA.No.4228/Del./2016 M/s. Anadi Mercantile Pvt. Ltd., New Delhi.

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