What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable due to the low tax effect, as per the CBDT circular. The circular was applicable to pending appeals.

The Revenue filed an appeal before the ITAT. The tax effect on the disputed issue was below the enhanced monetary limit set by the CBDT.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the tax effect and the CBDT's enhanced monetary limits for filing appeals.

ACIT vs Dugar Overseas Pvt Ltd, New Delhi | ITAT Delhi 2019

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

Before: SHRI G.S. PANNU & SHRI AMIT SHUKLA

For Appellant: Shri Subhakant Sahu, Sr.D.R

O R D E R PER AMIT SHUKLA, JM

The aforesaid appeal has been filed by the Revenue against the impugned order dated 26.02.2019 passed by Commissioner of Income Tax (Appeals)-XV, Delhi for the Assessment Year 2010-11.

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.

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.

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.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 25th October, 2019.

ACIT CIRCLE-7(2), NEW DELHI vs. DUGAR OVERSEAS PVT LTD, NEW DELHI

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