ACIT, NEW DELHI vs. M/S MANI CAPITALS LTD, KANPUR

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ITA 102/DEL/2016Status: DisposedITAT Delhi05 August 2019AY 2009-103 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 dismissed the appeal filed by the Revenue. This was based on a CBDT circular directing the department not to file appeals where the tax effect does not exceed Rs. 20 lakhs.

What were the facts?

The Revenue filed an appeal against the deletion of penalty under section 271(1)(c) of the IT Act. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable given the tax effect and CBDT circular instructions.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “D” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI T.S. KAPOOR

Hearing: 05.08.2019Pronounced: 05.08.2019

For Revenue : Shri Naina Soin Kapil, Sr. DR For Assessee : Shri Sandeep Chadha, C.A. Date of Hearing : 05.08.2019 Date of Pronouncement : 05.08.2019 ORDER PER BHAVNESH SAINI, J.M.

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-25, Delhi, Dated 31.10.2015, for the A.Y. 2009-2010, challenging the deletion of penalty of Rs.17,28,990/- under section 271(1)(c) of the I.T. Act, 1961.

2 ITA.No.102/Del./2016 M/s. Mani Capitals Ltd., Kanpur, U.P.

2.

Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018Dated 11thJuly, 2018 issued by CBDT, 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 Tribunals. Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. D.R. in view of the Board’s Circular above did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.

3.

In the result, appeal of Revenue dismissed.

3 ITA.No.102/Del./2016 M/s. Mani Capitals Ltd., Kanpur, U.P. Order pronounced in the open Court.

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