What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable due to the tax effect being below the enhanced monetary limit specified in CBDT Circular No. 17/2019.

The Revenue filed an appeal before the ITAT. Both parties agreed that the tax effect on the disputed issue was below the monetary limit prescribed by the CBDT for filing appeals.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal in light of the revised monetary limits for appeals stipulated by the CBDT.

DCIT vs M/S. Nestle India Ltd., Gurgaon | ITAT Delhi 2020

Income Tax Appellate Tribunal, DELHI BENCH “E” NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI O.P. KANT

For Appellant: Ms. Rakhi Vimal, Sr.D.R

For Respondent: Shri Ajay Vohra, Adv

PER AMIT SHUKLA, J.M.: The aforesaid appeal has been filed by the Revenue against the impugned order dated 22.06.2016 passed by Commissioner of Income Tax (Appeals)-XXII, New Delhi for the Assessment Year 2007-08.

At the outset, both the parties admitted that tax effect on the disputed issue raised in the Revenue’s appeal is approximately Rs. 40.30 lac which is below the prescribed monetary limit of 50 lac, and therefore, in view of new CBDT Circular No.17/2019, the appeal of the Revenue is not maintainable.

In view of the CBDT Circular No.17/2019 dated 8th August, 2019, wherein the CBDT has further enhanced the monetary limit for filing of appeal by the Department before the Income Tax Appellate Tribunal from Rs.20 lacs to Rs.50 lacs. The said circular also make reference to the earlier Circular No.3 of 2018 dated 11.07.2018 and specially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier circular. This inter alia means that all the other conditions mentioned in the earlier Circular No.3 of 2018 dated 11.07.2018 will apply mutatis mutandis including that is, it will apply to all the pending appeals.

Further CBDT vide clarification dated 20.08.2019 has clarified that the aforesaid circular will apply to all pending appeals. Accordingly, the appeal of the Revenue is dismissed as non maintainable as the tax effect is below Rs.50 lakhs.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 7th January, 2020.

DCIT (LTU), NEW DELHI vs. M/S. NESTLE INDIA LTD., GURGAON

What did the Tribunal hold?

What were the facts?

What were the issues?

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