DCIT, NEW DELHI vs. M/S MERCER INDIA PVT. LTD., GURGAON

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ITA 1557/DEL/2016Status: DisposedITAT Delhi10 October 2019AY 2011-123 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 accepted the assessee's submission that the tax effect was below the monetary limit for filing appeals. Consequently, the appeal filed by the Revenue was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee contended that the tax effect involved in the appeal was below Rs. 50 lacs, making it not maintainable as per CBDT circulars.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal given the low tax effect, in light of the CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘I-1’, NEW DELHI

Before: SH. R. K. PANDASH. KULDIP SINGH

Hearing: 07/10/2019Pronounced: 10/10/2019

Appellant by Sh.Subha Kant Sehu, Sr. DR. Respondent by Sh. Purushottam Anand, Advocate Date of hearing: 07/10/2019 Date of Pronouncement: 10/10/2019 ORDER

PER R.K PANDA, AM:

1.

This appeal filed by the revenue is directed against the order dated 21.01.2016 passed by the AO u/s. 144C(1)/ 143 (3) of the IT Act for A. Y.2011-12.

2.

An adjournment application was filed by the Ld. Senior DR on the ground that the CIT(DR) is not available. However, the Ld. Counsel for the assessee submitted that since the tax effect involved in the grounds raised by the revenue is below Rs.50 lacs, therefore, the appeal filed by the revenue is not maintainable. Hence, the adjournment application filed by the revenue is rejected and the appeal is being disposed of on account of low tax effect. 3. The Ld. Counsel for the assessee at the time of hearing filed a chart substantiating that the tax effect involved in the grounds raised

by the revenue is below of Rs. 50 lacs. Therefore, in view of the CBDT circular No.17/2019 dated 08.08.2019 whereby the CBDT has raised the monetary limit of filing appeals by the revenue before the Tribunal to Rs.50 lacs, the appeal filed by the revenue is not maintainable. It has further been clarified by CBDT subsequently that the said circular is applicable even to pending appeals. Therefore, the appeal filed by the revenue has to be dismissed.

4. We have heard the rival arguments made by both the sides and perused the orders of the authorities below. Admittedly the tax effect involved in the grounds raised by the revenue is below Rs.50 lacs as per calculation sheet filed by the Ld. Counsel for the assessee. Therefore, in view of CBDT Circular No.17/2019 dated 08.08.2019 raising the monetary limit of filing of the appeals by the revenue before the Tribunal to Rs. 50 lacs the appeal filed by the revenue is not maintainable. It has further been clarified by CBDT subsequently that the said circular is applicable even to pending appeals. We, therefore, dismiss the appeal filed by the revenue on account of low tax effect. 4.1 However, if the revenue at any point of time finds that the tax effect involved in the grounds raised by the revenue is more Page | 2 than 50 lacs, the revenue is at liberty to file miscellaneous application before the Tribunal for recalling of this order.

5. In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open court on 10.10.2019.

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