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Income Tax Appellate Tribunal, DELHI BENCH “Friday” NEW DELHI
Before: SHRI R. K. PANDA & SHRI K. N. CHARY
The revenue through these Miscellaneous Applications requests the Tribunal to recall the exparte order passed by it dismissing the appeals filed by the revenue on account of low tax effect.
The Ld. DR referring to the miscellaneous application submitted that the tax effect involved in the appeals filed by the revenue are Rs.43,60,615/- for A. Y. 2008-09 and Rs.54,48,700/- for A.Y.2012-13.
Since the tax effect involved in the grounds raised by the revenue were more than 20 lacs, therefore, a mistake has crept in the order of the Tribunal by dismissing both the appeals by relying on circular No.03/2018 he accordingly submitted that orders of the Tribunal be recalled and the appeals be heard afresh.
The Ld. Counsel for the assessee on the otherhand fairly conceded that the tax effect involved in the grounds raised by the revenue for both the years are more than Rs.20 lacs each and, therefore, a mistake has crept in the order of the Tribunal. He, however, submitted that the tax effect involved in the grounds raised by the revenue for A.Y. 2008-09 is below Rs. 50 lacs and therefore, in view of the recent CBDT Circular No. 17/2019 dated 08.08.2019, which is even applicable to pending appeals, the appeal filed by the revenue for A. Y. 2008-09 has to be dismissed, since the monetary limit involved in the grounds raised by the revenue is below Rs. 50 lacs.
We have considered the rival arguments made by both the sides and perused the material available on record. It is an admitted fact that the tax effect involved in the grounds raised by the revenue in both the appeals are above 20 lacs and, therefore, a mistake has crept in the order of the Tribunal in dismissing the appeals filed by the revenue on account of low tax effect on the basis of CBDT Circular No.03/2018. We, therefore, recall the order of the Tribunal for both the years.
is being decided in subsequent paragraphs on account of low tax effect. So far as for A.Y.2012-13 is concerned, the registry is directed to issue notice to both the parties in regular course.
The miscellaneous applications filed by the revenue are accordingly allowed.
After hearing both the sides we find tax effect involved in the grounds raised by the revenue is below Rs. 50 lacs. Therefore, in view of the CBDT circular No.17/2019 dated 08.08.2019 wherein the CBDT has raised the monetary limit for filing of the appeals before the Tribunal to Rs. 50 lacs the appeal filed by the revenue is not maintainable. It has further been clarified by the CBDT that this circular is applicable even to pending appeals. Since the tax effect involved in the grounds raised by the revenue is admittedly below Rs. 50 lacs, therefore, the appeal filed by the revenue being not maintainable is dismissed.
In the result, the appeal filed by the revenue is dismissed.
Order pronounced in the open court on 06.11.2019.