ITO, SAHARANPUR vs. M/S. SHIVJI PALACE HOTEL & CLUB PVT. LTD., SAHARANPUR

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ITA 2876/DEL/2017Status: DisposedITAT Delhi28 August 2019AY 1998-993 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 appeals fall within the ambit of CBDT Circular No. 17/2019 and its subsequent clarification, which prescribe monetary limits for revenue appeals. Since the tax effect was below the prescribed limit, the appeals were dismissed.

What were the facts?

The Revenue filed appeals before the ITAT against orders of the CIT(A) for assessment years 1998-99 and 2002-03. The tax effect in both appeals was below Rs. 50 lacs.

What were the issues?

The primary issue was the applicability of CBDT circulars regarding monetary limits for revenue appeals to the pending appeals before the Tribunal.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI R.K.PANDA & MS. SUCHITRA KAMBLE

For Respondent: Ms. Naina Soin Kapil, Sr.DR
Hearing: 23.08.2019Pronounced: 28.08.2019

PER SUCHITRA KAMBLE, J.M. Both appeals are filed by the department against separate order dated 27.02.2017 passed by the Commissioner of Income Tax (Appeals)-Muzaffarnagar for assessment year 1998-99 and 2002-03.

2.

At the outset, it was brought to our notice that the tax effect involved in both appeals being less than Rs. 50 lacs, squarely falls within the ambit of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue and subsequent clarification issued by CBDT on 20th August, 2019.

3.

After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We find that the subsequent clarification dated 20.08.2019 makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. The Circular is binding on the tax authorities. Hence, we hold that the appeals of the revenue deserve to be dismissed on account of low tax effect vide Circular No. 17/2019 dated 08.08.2019 and subsequent clarification on 20.08.2019. Accordingly, on account of low tax effect case, we dismiss both appeals of revenue in limine, without going into the merits of the case.

4.

In the result, appeals of the revenue are dismissed. Order pronounced in the open court on 28.08.2019

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