ACIT, NEW DELHI vs. M/S MMTC LTD., NEW DELHI

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ITA 1655/DEL/2011Status: DisposedITAT Delhi01 November 2019AY 1998-994 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 Circulars specify monetary limits for filing departmental appeals. Since the tax effect was below the enhanced limit of Rs. 50 lakhs and did not fall under any exceptions, the Revenue did not press the appeal.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) that deleted an addition of Rs. 1,01,37,518/- on account of pre-operative expenses. The tax effect in the appeal was less than Rs. 50 lakhs.

What were the issues?

Whether the departmental appeal is maintainable given the tax effect and the prevailing CBDT circulars regarding monetary limits for appeals.

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 BENCHES “E” : DELHI

Before: SHRI BHAVNESH SAINI, J.M. & SHRI O.P. KANT, A.M.

Hearing: 30.10.2019Pronounced: 01.11.2019

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-VIII, New Delhi, Dated 21.01.2011, for the A.Y. 1998-1999, challenging the Order of Ld. CIT(A) in deleting addition of Rs.1,01,37,518/- on account of pre-operative expenses.

2 ITA.No.1655/Del./2011 M/s. MMTC Ltd., New Delhi.

2.

Admittedly, the tax effect in the Departmental Appeal is less than Rs.50 lakhs. Vide Circular No.3/2018 Dated 11th July, 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 Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. The CBDT Vide Circular No.17/2019 Dated 08.08.2019 amended the 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

3 ITA.No.1655/Del./2011 M/s. MMTC Ltd., New Delhi. Circular No.3/2018 (supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly.

3.

The Ld. D.R. in view of the above Board’s Circulars did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circulars. 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.

4.

In the result, appeal of the Department dismissed. Order pronounced in the open Court.

Sd/- Sd/- (O.P. KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi, Dated 01st November, 2019 VBP/-

4 ITA.No.1655/Del./2011 M/s. MMTC Ltd., New Delhi.

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