What did the Tribunal hold?

The Tribunal held that the departmental appeal was not maintainable as the tax effect was below the monetary limit prescribed by the CBDT circular. No exceptions were brought to the notice of the Tribunal.

The Revenue filed an appeal before the ITAT. The CBDT issued a circular directing that appeals with a tax effect below Rs. 50 lacs should not be filed. The tax effect in this departmental appeal was admittedly less than Rs. 50 lacs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT based on the monetary limit prescribed by the CBDT circular.

ITO vs M/S. Pepsico India Holdings Pvt… | ITAT Delhi 2019

Before: Shri Bhavnesh Saini & Shri B.R.R. Kumar

Hearing: 14.08.2019

ORDER Per B.R.R. Kumar, A.M.:

The present appeal has been filed by the Revenue against the order of the Ld. CIT(A)-43, Delhi dt. 09/03/2016.

According to Circular No. 17/2019 dated 08/08/2019, the CBDT in supersession of earlier instructions has directed that department’s appeals before ITAT shall not be filed in cases where the tax effect does not exceed the monetary limit of Rs. 50 lacs. The tax will not include any interest thereon. It is further clarified that even if in the case of an assessee, disputed issues arise in more than one assessment year, appeal cannot be filed in respect of such assessment year or years in which the tax effect in respect of disputed issues exceeds the monetary limit so specified.

Admittedly, in the departmental appeal, the tax effect is less than Rs. 50 lacs, therefore, departmental appeal is not maintainable. The Ld. DR could not bring to our notice any exceptions mentioned in the said Circular.

ITO (TDS) (INTERNATIONAL TAXATION), NEW DELHI vs. M/S. PEPSICO INDIA HOLDINGS PVT. LTD., GURGAON

What did the Tribunal hold?

What were the facts?

What were the issues?

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