DCIT, NEW DELHI vs. M/S FUTURZ NEXT SERVICES (P) LTD., NEW DELHI

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ITA 3555/DEL/2016Status: DisposedITAT Delhi19 August 2019AY 2010-113 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 the tax effect was below the enhanced monetary limit for filing appeals. The Departmental Representative did not controvert this proposition.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee pointed out that the tax effect was Rs. 41,44,821/-, which was below the revised monetary limit of Rs. 50 lakhs for departmental appeals to the Tribunal as per CBDT Circular No. 17/2019.

What were the issues?

Whether the Revenue's appeal should be dismissed based on the revised monetary limit for appeals stipulated by CBDT circulars.

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

ORDER PER H.S. SIDHU, J.M.:

This appeal by the Revenue is directed against the order dated 17.3.2016 passed by the Ld. CIT(A)-30, New Delhi in relation to assessment year 2010-11.

2.

At the time of hearing, Ld. Counsel for the assessee has filed a copy of Computation of Tax Effect showing total tax effect involved in the present case is Rs. 41,44,821/- meaning thereby that the tax effect in the Departmental Appeal is less than Rs.50 lakhs, hence, he 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. It is noted that vide Circular No.3/2018 Dated 11thJuly, 2018 issued 3. 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 was also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal and the pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. Recently, the CBDT vide its Circular No.17/2019 Dated 08.08.2019 amended its earlier Circular No.3/2018 dated 11.7.2018 (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 dated 11.7.2018 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 ITA No. 1398/Ahd/2004 (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 19.08.2019

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