ITO, NEW DELHI vs. M/S. APS METALS PVT. LTD., DELHI

PDF · subscribers
ITA 1465/DEL/2017Status: DisposedITAT Delhi01 October 2019AY 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 dismissed the appeal as the Revenue did not press it due to the low tax effect, which fell below the revised monetary limit set by CBDT circulars. The appeal was also deemed not maintainable on these grounds.

What were the facts?

The Revenue filed an appeal against the deletion of an addition of Rs. 1,00,75,000/- made under Section 68. Both parties agreed that the tax effect in the appeal was below Rs. 50,00,000/-.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the revised monetary limits for appeals set by CBDT circulars and whether the Revenue pressed the appeal.

Which sections of the Income-tax Act were involved?

Section 68,Section 254(2)

AI-generated summary — verify with the full judgment below

(A) This appeal by Revenue is filed against the order of Learned Commissioner of Income Tax (Appeals)-I, New Delhi, [“Ld. CIT(A)”, for short], dated 06.12.2016 for Assessment Year 2012-13. Grounds taken in this appeal of Revenue are as under:

“1. Ld. CIT(A) erred in law and on facts in deleting addition of Rs. 1,00,75,000/- made u/s 68 of Income Tax Act, 1961. 2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”

ITA No.- 1465/Del/2017 M/s APS Metals Pvt. Ltd. (B) At the outset, we noticed at the time of hearing that tax effect in this appeal is below Rs. 50,00,000/-. Both sides, [Representatives of Revenue and the Assessee] were in agreement, at the time of hearing before us, that the tax effect in the present 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. Having regard to the aforesaid, the Ld. Sr. DR for Revenue did not press the appeal. The learned Counsel for the assessee also submitted that the appeal was not maintainable in view of the aforesaid CBDT Circular dated 08.08.2019 and 11.07.2018; and aforesaid clarification dated 20.08.2019 issued by CBDT. Therefore, this appeal is dismissed being not pressed and also being 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 of this appeal if it is found that appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

ITA No.- 1465/Del/2017 M/s APS Metals Pvt. Ltd. (D) In the result, this 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 01.10.19.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →