What did the Tribunal hold?

The Tribunal held that the appeal of the Revenue was not maintainable due to low tax effect, as per CBDT Circular No. 17/2019 and its subsequent clarification. The appeal was dismissed in limine without going into the merits.

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The tax effect involved in the appeal was below the monetary limit prescribed by CBDT circulars for preferring appeals.

What were the issues?

The primary issue was the applicability of CBDT circulars regarding monetary limits for appeals to the present case. The Tribunal considered whether the appeal should be dismissed based on low tax effect.

DCIT vs Metal One Corporation India Pvt… | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCH: ‘I-2’ NEW DELHI

Before: SHRI R.K.PANDA & MS. SUCHITRA KAMBLE

For Respondent: Ms. Nidhi Sharma, Sr. DR

Hearing: 26.09.2019Pronounced: 26.09.2019

This appeal is filed by the Revenue against order dated 28.09.2018 passed by the Commissioner of Income Tax (Appeals)-44, New Delhi for assessment year 2013-14.

At the outset, it was brought to our notice that the tax effect involved in this appeal being less than Rs. 50 lacs, squarely falls within the ambit of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue and subsequent clarification issued by CBDT on 20th August, 2019.

After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the (Metal One Corporation India Pvt. Ltd.)

case. We find that the subsequent clarification dated 20.08.2019 makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. The Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserve to be dismissed on account of low tax effect vide Circular No. 17/2019 dated 08.08.2019 and subsequent clarification on 20.08.2019. Accordingly, on account of low tax effect case, we dismiss this appeal of revenue in limine, without going into the merits of the case.

In result, appeal of the revenue is dismissed. Order pronounced in the open court on 26.09.2019

DCIT, CIRCLE- 16(2), NEW DELHI vs. METAL ONE CORPORATION INDIA PVT. LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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