ITO, GURGAON vs. M/S MAN POWER INCORPORATED, GURGAON

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ITA 6343/DEL/2015Status: DisposedITAT Delhi02 September 2019AY 2007-084 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 held that the appeal was not maintainable as it was filed against the Board's instructions regarding monetary limits. The appeal was therefore dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT. The tax effect in the appeal was less than Rs. 50 lakhs. The CBDT issued circulars setting monetary limits for departmental appeals.

What were the issues?

Whether the departmental appeal is maintainable given the tax effect and the CBDT's circulars on 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 “SMC”: DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 20.08.2019Pronounced: 02.09.2019

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-2, Gurgaon, Dated 28.09.2015, for the A.Y. 2010-2011.

2.

Earlier, the Departmental Appeal was dismissed following the Board Circular. The Revenue filed M.A. The M.A. of the Revenue was allowed and appeal was re-fixed for hearing.

2 ITA.No.6343/Del./2015 M/s.Man Power Incorporated, Gurgaon.

3.

Admittedly, the tax effect in the Departmental Appeal is 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 Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department.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 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

3 ITA.No.6343/Del./2015 M/s.Man Power Incorporated, Gurgaon.

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 Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circulars. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.

5.

In the result, appeal of the Department is dismissed.

Order pronounced in the open Court.

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