ACIT, NEW DELHI vs. M/S. MOTHERSON PUNDENZ WICKMANN LTD., NEW DELHI

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ITA 6537/DEL/2013Status: DisposedITAT Delhi01 October 2019AY 2004-053 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 appeal was not maintainable due to low tax effect, which was less than Rs. 50,00,000/-, as per the CBDT Circular. The appeal was dismissed as infructuous.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A) for AY 2004-05. The assessee contended that the appeal should be dismissed due to low tax effect as per CBDT Circular No. 17/2019.

What were the issues?

Whether an appeal filed by the Revenue is maintainable before the ITAT when the tax effect is below the threshold stipulated in the CBDT Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’ : NEW DELHI

Before: SHRI N.K.BILLAIYA & SHRI KULDIP SINGH

For Respondent: Dr. Vijay Kr. Chadha, Sr. DR
Hearing: 25.09.2019

PER KULDIP SINGH, JUDICIAL MEMBER :

1.

The Appellant, Dy. Commissioner of Income-tax, Circle 17(1), New Delhi (hereinafter referred to as ‘the revenue’) by filing the present appeal sought to set aside the impugned order dated 30.09.2013 passed by the Commissioner of Income-tax (Appeals)-VIII, New Delhi qua the assessment year 2004-05.

2.

Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.17/2019 dated 8th August, 2019 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.50,00,000/- and this factual position has been fairly conceded by the Ld. D.R. The Ld. A.R. contended that the appeal of the Revenue may be dismissed in the light of CBDT Circular (supra).

3.

We have heard the parties on the issue in controversy and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised. In view of the CBDT Circular No.17/2019 dated 8th August, 4. 2019 having retrospective effect as coordinate Bench of the Tribunal in case of Dinesh Madhavlal Patel [TS-469-ITAT- 2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14th August, 2019 has already decided the issue as to the applicability of the captioned circular to the pending appeals in affirmative and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.50,00,000/- hence, the aforesaid appeal filed by the Revenue is hereby dismissed having been become infructuous. However, in case, the present appeal is found to be maintainable at any stage for any technical reasons, the Department shall be at liberty to seek recall of this order under relevant provisions of law. Order pronounced in open court on this 1st day of October, 2019.

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