ACIT, NEW DELHI vs. M/S. ESTER INDUSTRIES LTD., GURGAON

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ITA 1943/DEL/2016Status: DisposedITAT Delhi29 July 2019AY 2007-083 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 appeal of the revenue deserved to be dismissed in terms of low tax effect as per CBDT Circular No. 3/2018. The circular was binding on tax authorities and applied retrospectively to pending appeals.

What were the facts?

The Department filed an appeal before the Income Tax Appellate Tribunal (ITAT) against an order for assessment year 2007-08. The quantum involved in the appeal was below the monetary limit prescribed by CBDT Circular No. 3/2018 for preferring appeals.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3/2018, which sets monetary limits for departmental appeals, to the present case.

AI-generated summary — verify with the full judgment below

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

Before: SHRI SUDHANSHU SRIVASTAVA & SHRI O.P.KANT

For Respondent: Shri G.Johnson, Sr.DR
Hearing: 29.07.2019Pronounced: 29.07.2019

This appeal is filed by the department against order dated 20.01.2016 passed by the Ld. Commissioner of Income Tax (Appeals)-14, New Delhi for assessment year 2007-08. 2. At the outset, It is brought to our notice that the quantum involved in this case being less than Rs. 20 lacs, squarely falls within the ambit of Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue.

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. 3/2018 dated 11.07.2018 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 3/2018 dated 11.07.2018 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 also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No. 3/2018 dated 11.07.2018. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case.

4.

In the result, appeal of the revenue is dismissed. Order pronounced in the open court on 29.07.2019.

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