ITO, NEW DELHI vs. MISS AMISHA GUPTA, NEW DELHI

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ITA 2902/DEL/2015Status: DisposedITAT Delhi04 September 2019AY 2011-125 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 the CBDT Circulars prescribe monetary limits for departmental appeals, which have been enhanced over time. Since the tax effect was below the enhanced limit, the Revenue's appeal was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT, and the assessee filed a cross-objection. The assessee's counsel argued that the tax effect in the Revenue's appeal was below the monetary limit prescribed by CBDT Circulars for filing appeals.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect in light of 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 BENCH: ‘F’, NEW DELHI

Before: SHRI H.S. SIDHU & SHRI O.P. KANT

Heard together (2 matters)

C.O. NO. 322/DEL/2015
ITA NO. 2902/DEL/2015

Read from the judgment's own cause title. This page is filed under one of them.

This appeal is filed by the Revenue and Cross Objection filed by the Assessee against the impugned order passed by the Ld. CIT(A)-18, New Delhi relating to assessment year 2011-12.

3.

Ld. Counsel for the assessee stated that the tax effect involved in this Departmental Appeal is less than Rs.50 lakhs, hence, he requested that the appeal of the Revenue may be dismissed in view of latest CBDT Circular No. 17/2019 Dated 08.08.2019 wherein the monetary limit for filing the appeal before the Appellate Tribunal by the Department have been enhanced to Rs.50 lakhs.

4.

It is noted that vide Circular No.3/2018 Dated 11thJuly, 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 Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department.

Recently, the CBDT vide Circular No.17/2019 Dated 08.08.2019 amended its 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 Circular No.3/2018 dated 11.7.2018 (Supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly. This view is supported by the ITAT, Ahemedabad ‘A’ Bench decision dated 14th August, 2019 passed in the case of Income Tax Officer, Ward 3(2), Ahmedabad vs. Dinesh Madhvlal Patel and 627 others passed in (AY 1998-99).

4.1 Ld. DR did not controvert the aforesaid proposition.

5.

Keeping in view of the facts and circumstances as explained above and in view of the aforesaid CBDT Circulars as well as decision dated 14th August, 2019 of the ITAT, Ahemedabad ‘A’ Bench passed in the case of Income Tax Officer, Ward 3(2), Ahmedabad vs. Dinesh Madhvlal Patel and 627 others passed in (AY 1998-99), the appeal of the Department is dismissed.

ASSESSEE’S CROSS OBJECTION NO. 322/DEL/2015

6.

As regards Assessee’s Cross Objection is concerned, since we have already dismissed the Revenue’s Appeal on account of low tax effect, as aforesaid, hence, the Cross Objection filed by the assessee has become infructuous and dismissed as such.

7.

In the result, the appeal filed by the Department as well as Cross Objection of the assessee stand dismissed.

The decision is pronounced on 04.09.2019.

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