ACIT, NEW DELHI vs. M/S SOIL ENGINEERING CONSULTANTS, NEW DELHI

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ITA 3336/DEL/2016Status: DisposedITAT Delhi01 November 2019AY 2011-124 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 Departmental appeal was not maintainable in view of CBDT Circulars which set monetary limits for filing appeals. The Assessee's cross-objection was permitted to be withdrawn.

What were the facts?

The Revenue filed an appeal before the ITAT, and the Assessee filed a cross-objection. The tax effect in the Revenue's appeal was less than Rs. 50 lakhs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to its low tax effect, as per CBDT circulars. The Assessee's withdrawal of the cross-objection was also addressed.

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 “D”: DELHI

Before: SHRI BHAVNESH SAINI & SHRI B.R.R. KUMAR

Hearing: 22.10.2019Pronounced: 01.11.2019

2 ITA.No.3336/Del./2016 & C.O.No.242/Del./2016 M/s. Soil Engineering Consultants, New Delhi. ORDER PER BHAVNESH SAINI, J.M.

This appeal by Revenue and Cross Objection by Assessee are directed against the Order of the Ld. CIT(A)-20, New Delhi, Dated 28.03.2016, for the A.Y. 2011-2012.

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 Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department.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 3 ITA.No.3336/Del./2016 & C.O.No.242/Del./2016 M/s. Soil Engineering Consultants, New Delhi. 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 (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 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.

5.

Learned Counsel for the Assessee seeks permission to withdraw the cross objection and the same is dismissed as withdrawn.

4 ITA.No.3336/Del./2016 & C.O.No.242/Del./2016 M/s. Soil Engineering Consultants, New Delhi. 6. In the result, cross objection of the Assessee dismissed.

7.

To sum-up, appeal of the Revenue and Cross Objection of the Assessee are dismissed.

Order pronounced in the open Court.

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