DCIT, NEW DELHI vs. M/S. KANODIA TECHNOPLAST PVT. LTD., NEW DELHI

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ITA 5458/DEL/2015Status: DisposedITAT Delhi21 October 2019AY 2006-074 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 dismissed the Revenue's appeal as the tax effect was below the revised monetary limit for filing appeals as per CBDT Circulars. The assessee's cross objection was dismissed as withdrawn.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 1,30,68,000/- made under Section 68 of the Income Tax Act. The tax effect in the appeal was less than Rs. 50 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable given the tax effect and CBDT circulars regarding appeal filing limits.

Which sections of the Income-tax Act were involved?

Section 68,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: 21.10.2019Pronounced: 21.10.2019

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)-V, New Delhi, Dated 05.06.2015, for the A.Y. 2006-2007.

2.

In the Departmental Appeal, the Revenue challenged the deletion of addition of Rs.1,30,68,000/- under section 68 of the I.T. Act, 1961. 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 Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department.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

3 ITA.No.5458/Del./2015 & C.O. No.55/Del./2016 M/s. Kanodia Technoplast Pvt., Ltd., New Delhi. 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 (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 ITA.No.5458/Del./2015 & C.O. No.55/Del./2016 M/s. Kanodia Technoplast Pvt., Ltd., New Delhi. 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.

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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