ACIT, NEW DELHI vs. M/S. S.A. FINVEST LTD., NEW DELHI

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ITA 3200/DEL/2015Status: DisposedITAT Delhi15 October 2019AY 2005-063 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 appeal filed by the Revenue was not maintainable due to the low tax effect, as per CBDT circulars. The Departmental Representative also did not press the appeal.

What were the facts?

The Revenue filed an appeal against an order of the Pr. CIT(A) for assessment year 2005-06. The tax effect in the appeal was below the monetary limit prescribed by CBDT circulars for filing appeals.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to the tax effect being below the prescribed monetary limit.

Which sections of the Income-tax Act were involved?

Section 147,Section 254(2)

AI-generated summary — verify with the full judgment below

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

Before: SHRI SUDHANSHU SRIVASTAVA & SHRI ANADEE NATH MISSHRA

For Appellant: Ms. Ashima Neb, Sr. DR

[A]. This appeal has been filed by Revenue against the order dated 19.03.2015 passed by Learned Pr. Commissioner of Income Tax (OSD) (Appeals)-8, New Delhi [in short, “Ld. Pr. CIT(A)”] pertaining to assessment year 2005-06. In this appeal, the tax effect is less than the monetary limit fixed by the Central Board of Direct Taxes (in short “CBDT”) in its Circular No.17/2009 dated 08.08.2019. The Revenue has raised following grounds of appeal:-

(1) The ld. CIT(A) has erred in law and on facts in holding that the reopening of the assessment u/s 147 is not justified and thereby quashing the assessment order passed u/s 147 of the Income Tax Act.

ITA No: - 3200/Del/2015

(2) The ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 85,50,000/- made by the AO being income from undisclosed sources.”

[B]. At the outset, it was brought to the notice by learned counsel for the Assessee, at the time of hearing that tax effect in this appeal is below Rs. 50,00,000./-. Vide recent CBDT Circular No.17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect of filing of appeals by Revenue in Income Tax Appellate Tribunal ("ITAT", for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. Therefore, in view of the foregoing, we are of the view that this appeal filed by Revenue is not maintainable. The learned Departmental Representative also did not press the appeal.

Accordingly, this appeal is dismissed being not pressed, and also not maintainable, having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.

[C]. Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration

ITA No: - 3200/Del/2015 of the appeal if it is found that this appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

[D]. In the result, the appeal by Revenue is dismissed. Our decision was orally pronounced in the Open Court after conclusion of hearing on the date of hearing. Now, this written order is pronounced in Open Court on 15/10/2019.

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