DCIT, CIRCLE-9 vs. MUKESH LUTHRA,

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ITA 3153/DEL/2005Status: DisposedITAT Delhi20 December 2019AY 2001-20023 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 CBDT Circular No. 17/2019 enhanced the monetary limit for departmental appeals to Rs. 50 lakhs. As the tax effect was below this limit, the appeals were dismissed.

What were the facts?

The Revenue filed two appeals before the ITAT for assessment years 2001-02 and 2002-03. The assessee's counsel pointed out that the tax effect was below Rs. 50 lakhs, the revised monetary limit for departmental appeals.

What were the issues?

Whether departmental appeals with a tax effect below the enhanced monetary limit specified in CBDT circulars should be dismissed.

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: ‘B’ NEW DELHI

Before: SHRI H. S. SIDHU & DR. B.R.R. KUMAR

PER H.S. SIDHU, JM: These 02 appeals filed by the Revenue are directed against the respective orders passed by the Ld. CIT(A)-II, New Delhi in relation to assessments years 2002-03 & 2001-02.

2.

At the time of hearing, Ld. Counsel for the Assessee has stated that the tax effect involved in these Departmental Appeals is less than Rs.50 lakhs, hence, he requested that the appeals 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.

1.

2 It is noted that vide Circular No.3/2018 Dated 11thJuly, 3. 2018 issued 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 is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. Recently, the CBDT vide Circular No.17/2019 Dated 08.08.2019 amended its earlier Circular No.3/2018 (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 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 3 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 (AY 1998-99), both the appeals of the Department are dismissed.

6.

In the result, both the appeals filed by the Department are dismissed.

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