ITO, NEW DELHI vs. M/S. DATAMATION CONSULTATION PVT. LTD., DELHI

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ITA 5806/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, in view of CBDT Circular No. 17/2019 and its clarification, held that appeals with a low tax effect are not maintainable and should be treated as withdrawn.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition related to delayed payment of employee and employer contributions to PF and ESI. The tax effect involved in the appeal was below Rs. 50 lakhs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to a low tax effect, as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Not Applicable

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH : B : NEW DELHI

Before: SHRI R.K. PANDA & MS SUCHITRA KAMBLE

For Respondent: Ms Ashima Neb, Sr. DR
Hearing: 22.08.2019Pronounced: 02.09.2019

ORDER

PER R.K. PANDA, AM:

1.

This appeal filed by the Revenue is directed against the order dated 8th September, 2016 of the CIT(A)-3, New Delhi relating to assessment year 2012-13.

2.

The Revenue in its various grounds of appeal

has challenged the order of the CIT(A) in deleting the addition of Rs.1,21,11,878/- made by the Assessing Officer on account of delayed payment of employees’ contribution and employer’s contribution of PF an ESI.

2. None appeared on behalf of the assessee. The ld. DR, at the outset, conceded that the tax effect involved in the grounds raised by the Revenue is below Rs.50 lakhs. Therefore, in view of the CBDT Circular No.17/2019 dated 8th August, 2019 and the subsequent clarification issued by the CBDT on 20th August, 2019 explaining that the said Circular is applicable to all pending appeals, the appeal filed by the Revenue is not maintainable and has to be treated as withdrawn.

3. After hearing the ld. DR and on perusal of the record, it is an undisputed fact that the tax effect involved in the grounds raised by the Revenue is below Rs.50 lakhs, therefore, in view of the CBDT Circular No.17/2019 dated 8th August, 2019 and the subsequent clarification dated 20th August, 2019, vide F.No.279/Misc./M- 93/2018-ITJ clarifying that the said Circular is applicable to all pending appeals, the appeal filed by the Revenue is not maintainable and has to be treated as withdrawn on account of low tax effect. Accordingly, the same is dismissed.

4.

In the result, the appeal filed by the Revenue is dismissed. The decision was pronounced in the open court on 02.09.2019.

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