ITO, NEW DELHI vs. M/S PUSHPANJALI FINSOLUTIONS LTD., NEW DELHI

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ITA 565/DEL/2017Status: DisposedITAT Delhi09 September 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 Revenue's appeal. This was based on the CBDT circulars which set monetary limits for departmental appeals, and the fact that the tax effect in this case was below the enhanced limit of Rs. 50 lakhs.

What were the facts?

The Revenue filed an appeal against the deletion of an addition made by the AO under Section 14A. The tax effect involved in the appeal was below the monetary limit prescribed by CBDT circulars for filing appeals.

What were the issues?

Whether the Revenue's appeal should be dismissed due to the tax effect being below the prescribed monetary limit for appeals to the Tribunal as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

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

Before: SHRI H.S. SIDHU & SHRI PRASHANT MAHARISHI

This appeal is filed by the Revenue against the impugned order passed by the Ld. CIT(A)-36, New Delhi relating to assessment year 2012-13 on the following grounds:-

1. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in law in deleting the addition of Rs. 1,00,69,372/-

made by the AO u/s. 14A of the Act without appreciating the facts that the AO, after recording his satisfaction under the provisions of section 14A, has correctly computed the disallowance under Rule 8D of the I.T. Rules.

2. The appellant craves to add, modify or delete

any of the grounds on or before the date of hearing of appeal.

2.

It is noted that the tax effect involved in this Departmental Appeal is less than Rs.50 lakhs, hence, Ld. Counsel for the assessee requested that the appeal of the Revenue may be dismissed in view of latest CBDT Circular No. 17/2019 Dated 08.08.2019 wherein the monetary limit for filing the appeal before the Appellate Tribunal by the Department have been enhanced to Rs.50 lakhs.

3.

It is further noted that 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.

Recently, the CBDT vide Circular No.17/2019 Dated 08.08.2019 amended its earlier Circular No.3/2018 (Supra) whereby it has been directed that monetary limit for filing 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 dated 11.7.2018 (Supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly. This view is supported by the ITAT, Ahemedabad ‘A’ Bench decision dated 14th August, 2019 passed in the case of Income Tax Officer, Ward 3(2), Ahmedabad vs. Dinesh Madhvlal Patel and 627 others passed in (AY 1998-99).

4.

Ld. CIT(DR) has agreed that the tax effect involved in this appeal is below the prescribed limit i.e. Rs. 50 lacs.

5.

Keeping in view of the facts and circumstances as explained above and in view of the aforesaid CBDT Circulars as well as decision dated 14th August, 2019 of the ITAT, Ahemedabad ‘A’ Bench passed in the case of Income Tax Officer, Ward 3(2), Ahmedabad vs. Dinesh Madhvlal Patel and 627 others passed in (AY 1998-99), the appeal of the Department is dismissed.

6.

In the result, the appeal filed by the Department is dismissed.

The decision is pronounced on 09.09.2019.

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