ACIT, NEW DELHI vs. M/S. VIMONI INDIA PVT. LTD., NEW DELHI

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ITA 3634/DEL/2017Status: DisposedITAT Delhi14 November 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 ITAT noted that the CBDT Circular No. 17/2019 enhanced the monetary limit for filing appeals to Rs. 50 lakhs and clarified that it applies to pending appeals. Therefore, the Revenue's appeal was dismissed as not maintainable.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). At the outset, the Revenue's representative pointed out that the tax effect on the disputed issue was below Rs. 50 lakhs.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable before the ITAT given the tax effect and the prevailing CBDT circulars regarding monetary limits for appeals.

AI-generated summary — verify with the full judgment below

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

Before: SHRI AMIT SHUKLA & SHRI ANADEE NATH MISSHRA

For Appellant: Shri Saras Kumar, Sr.D.R
For Respondent: Ms. Ragini Honda, CA

O R D E R PER AMIT SHUKLA, JM

The aforesaid appeal has been filed by the Revenue against the impugned order dated 31.01.2017 passed by Commissioner of Income Tax (Appeals)-XIII, New Delhi for the Assessment Year 2012-13.

2.

At the outset, it has been pointed out by the ld. D.R. that the tax effect on the disputed issue raised in the Revenue’s Appeal is much below Rs.50 lac, and therefore, in view of new CBDT Circular No.17/2019, the appeal of the Revenue is not maintainable.

3.

In view of the CBDT Circular No.17/2019 dated 8th August, 2019, wherein the CBDT has further enhanced the monetary limit for filing of appeal by the Department before the Income Tax Appellate Tribunal from Rs.20 lacs to Rs.50 lacs. The said circular also make reference to the earlier Circular No.3 of 2018 dated 11.07.2018 and specially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier circular. This inter alia means that all the other conditions mentioned in the earlier Circular No.3 of 2018 dated 11.07.2018 will apply mutatis mutandis including that is, it will apply to all the pending appeals.

4.

Further CBDT vide clarification dated 20.08.2019 has clarified that the aforesaid circular will apply to all pending appeals. Accordingly, the appeal of the Revenue is dismissed as non maintainable as the tax effect is below Rs.50 lakhs.

5.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 14th November, 2019.

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