DCIT, NEW DELHI vs. SUBTERRANEAN METAPHYSICAL LTD., NEW DELHI

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ITA 5339/DEL/2015Status: DisposedITAT Delhi28 August 2019AY 2012-132 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 Revenue's appeals were not maintainable as the tax effect was below the monetary limit specified by CBDT Circular No. 17/2019. Consequently, the assessee's cross-objections were rendered infructuous.

What were the facts?

The Revenue filed appeals before the ITAT, and the assessee filed cross-objections. The appeals were heard together due to common tax effect across multiple assessment years.

What were the issues?

The primary issue was the maintainability of the Revenue's appeals before the ITAT based on the tax effect limit stipulated by the CBDT.

Which sections of the Income-tax Act were involved?

CBDT Circular No. 17/2019

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI

Before: SHRI AMIT SHUKLA & DR. B.R.R. KUMAR

For Appellant: Shri Aseem Chawla, Adv
For Respondent: Shri S.S. Rana, CIT(DR), Shri Aseem Chawla, Adv
Hearing: 27/08/2019Pronounced: 28/08/2019

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER 5337, 5338 & 5339/Del/2015 Asstt. Years: 2009-10, 2010-11, 2011-12 & 2012-13 DCIT, Vs. Subterranean Metaphysical Ltd. Central Circle-19, C/o Mr. Aseem Chawla, Advocate, New Delhi E-200, Greater Kailash-I, New Delhi PAN AAPCS4996K (Appellant) (Respondent) CO. Nos. 365,366,367 & 368/Del/ 2015 Asstt. Years 2009-10, 2010-11, 2011-12 & 2012-13 Subterranean Metaphysical Ltd., Vs. DCIT, C/o Mr. Aseem Chawla, Central Circle-19, Advocate, E-200, Greater New Delhi. Kailash-I, New Delhi PAN AAPCS4996K (Appellant) (Respondent) Department by: Shri S.S. Rana, CIT(DR) Assessee by : Shri Aseem Chawla, Adv. Lakshya Budhiraja, CA Date of Hearing 27/08/2019 Date of pronouncement 28/08/2019 ORDER PER BENCH :

The present appeals have been filed by the Revenue against the order of the ld. CIT(A)-XXVII, New Delhi each dated 10.06.2015.

2.

Since, the tax effect involved in all these appeals common in view of the CBDT circular, they were heard together and are being disposed off by common order. to 5339/Del/2015 2 CO Nos. 365 to 368/Del/2015 Subterranean Metaphysical Ltd.

3.

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.

4.

Admittedly, in the departmental appeals, 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.

5.

As regards to the Cross Objections filed by the assessee is concerned, since we have already dismissed the appeal of the revenue as aforesaid on account of low tax effect. Therefore, the Cross Objections filed by the assessee has become infructuous and dismissed.

6.

In the result, the appeals of the Revenue and CO of the assessee are dismissed. (Order Pronounced in the Open Court on 28/08/2019).

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