ACIT, NEW DELHI vs. M/S VIDYA EDUCATION INVESTMENTS PVT. LTD., NEW DELHI

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ITA 2479/DEL/2016Status: DisposedITAT Delhi02 September 2019AY 2012-133 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 Department should not file appeals before it if the tax effect does not exceed the monetary limit as per CBDT circulars. The Revenue's appeal was not pressed in light of these circulars.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition of Rs.93,26,356/- on account of notional rental income. The tax effect in the appeal was less than Rs.50 lakhs.

What were the issues?

Whether the departmental appeal is maintainable given the tax effect and the 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 BENCHES “C” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT

Hearing: 21.08.2019Pronounced: 02.09.2019

M/s. Vidya Education The ACIT, Circle-26(2), Room Investments Pvt. Ltd., 5C, No. 192, C.R. Building, New vs. Friends Colony (West), Main Delhi. Mathura Road, New Delhi. PAN AABCV9413E (Appellant) (Respondent) For Revenue : Shri Amit Katoch, Sr. D.R. For Assessee : Shri P.C. Yadav, Advocate Date of Hearing : 21.08.2019 Date of Pronouncement : 02.09.2019 ORDER PER BHAVNESH SAINI, J.M. This appeal by Revenue has been directed against the Order of the Ld CIT(A)-9, New Delhi, Dated 18.02.2016, for the A.Y. 2012-2013, challenging the deletion of addition of Rs.93,26.356/- on account of notional rental income and allowing loss under the Head "property” up to Rs.33,75,346/- instead of Rs.24,97,756/-.

2 ITA.No.2479/Del./2016 M/s. Vidya Education Investments Pvt. Ltd., New Delhi.

2.

Admittedly, the tax effect in the present appeal is less than Rs.50 lakhs. Vide Circular No.3 of 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 Tribunals. 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 Case 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.3/2019 (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 Circular. In the 3 ITA.No.2479/Del./2016 M/s. Vidya Education Investments Pvt. Ltd., New Delhi.

result, the Departmental appeal is not maintainable as the appeal is 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.

Order pronounced in the open Court.

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