ACIT, NEW DELHI vs. M/S PEGASUS SOFTECH PVT. LTD., NEW DELHI

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ITA 2611/DEL/2016Status: DisposedITAT Delhi18 September 2019AY 2006-074 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 Department's appeals as not maintainable, citing CBDT circulars that set monetary limits for appeals. The assessee's cross objections were also dismissed as not pressed.

What were the facts?

The Department filed appeals before the ITAT. The tax effect in these appeals was less than Rs. 50 lakhs. The assessee had also filed cross objections.

What were the issues?

The primary issue was the maintainability of the Department's appeals in light of CBDT circulars regarding monetary limits for appeals.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “E”: DELHI

Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT

Hearing: 18.09.2019Pronounced: 18.09.2019

2 ITA.No.2609, 2611 & 2612/Del./2016 & C.O.Nos.206 & 207/Del./2016, M/s. Pegasus Softech Pvt. Ltd., New Delhi. ORDER PER BHAVNESH SAINI, J.M.

This Order shall dispose-off all the above matters.

2.

We have heard the Learned Representative of both the parties and perused the material available on record.

3.

Admittedly, the tax effect in the Departmental Appeals are less than Rs.50 lakhs. Vide Circular No.3/2018 Dated 11thJuly, 2018 issued by CBDT under section 268A of the I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. The CBDT Vide Circular No.17/2019 Dated 08.08.2019 amended the earlier Circular No.3/2018 (supra) whereby it has been directed that monetary limit for filing

3 ITA.No.2609, 2611 & 2612/Del./2016 & C.O.Nos.206 & 207/Del./2016, M/s. Pegasus Softech Pvt. Ltd., New Delhi. the Departmental appeal in Income Tax Cases may be enhanced further through this amendment in para-3 of the Circular mentioned above and accordingly, the monetary limit for filing the appeal before the Appellate Tribunal have been enhanced to Rs.50 lakhs. Since Circular No.17/2019 Dated 08.08.2019 have been issued to amend its earlier Circular No.3/2018 (supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly.

4.

The Ld. D.R. in view of the above Board’s Circulars did not press the Departmental Appeals. The cases of the Department would not fall in the exceptions provided in the above Board Circulars. In the result, the Departmental appeals are not maintainable as the appeals are filed against the Board instructions referred to above and therefore, the appeals of the Department are liable to be dismissed.

5. Learned Counsel for the Assessee appearing in the above Cross Objections seeks permission to withdraw the cross objections as they are filed merely in support of 4 ITA.No.2609, 2611 & 2612/Del./2016 & C.O.Nos.206 & 207/Del./2016, M/s. Pegasus Softech Pvt. Ltd., New Delhi. the Order of the Ld. CIT(A). In view of these circumstances, the cross objections are dismissed as not pressed as well as not maintainable in the present form.

5.

In the result, all the appeals of the Department are dismissed and cross objections of the assessee are also dismissed.

Order pronounced in the open Court.

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