ACIT, CIRCLE-2(2), NEW DELHI vs. ANSAL HOUSING & CONSTRUCTION LTD., NEW DELHI

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ITA 6063/DEL/2017Status: DisposedITAT Delhi02 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 noted that CBDT Circular No. 17/2019 enhanced the monetary limit for departmental appeals to Rs. 50 lakhs. As the tax effect was below this limit and the Revenue did not controvert this, the appeals were dismissed.

What were the facts?

The Revenue filed four appeals before the ITAT. The assessee contended that the tax effect involved in these appeals was less than Rs. 50 lakhs, the enhanced monetary limit for filing appeals by the Department as per CBDT Circular No. 17/2019.

What were the issues?

Whether departmental appeals with a tax effect below the enhanced monetary limit specified in CBDT circulars should be dismissed.

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 BENCH: ‘A’, NEW DELHI

Before: SHRI H.S. SIDHU & SHRI ANADEE NATH MISSHRA

Heard together (2 matters)

ITA NO. 2512/DEL/2016
ITA NO. 6062/DEL/2017

Read from the judgment's own cause title. This page is filed under one of them.

PER H.S. SIDHU, JM:

1.

These 04 appeals by the Revenue are directed against the respective orders passed by the Ld. CIT(A)-XXXI, New Delhi in relation to assessments years 2008-09; 2010-11 to 2012-13

2.

At the time of hearing, Ld. Counsel for the Assessee has stated that the tax effect involved in these Departmental Appeals is less than Rs.50 lakhs, hence, he requested that the appeals 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 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 Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department.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) did not controvert the aforesaid proposition.

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), all these 04 appeals of the Department are dismissed.

6.

In the result, all the 04 appeals filed by the Department are dismissed.

The decision is pronounced on 02.09.2019.

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