ACIT, NEW DELHI vs. M/S. BINA FASHION N FOOD PVT. LTD., DELHI

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ITA 1421/DEL/2016Status: DisposedITAT Delhi26 August 2019AY 2009-103 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 appeals filed by the Revenue deserved to be dismissed in limine due to low tax effect, as per the binding CBDT circular and its subsequent clarification. The merits of the case were not considered.

What were the facts?

The Revenue filed appeals against orders for assessment years 2009-10, 2010-11, and 2011-12. The tax effect involved in these appeals was below the monetary limit prescribed by CBDT Circular No. 17/2019.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 17/2019 regarding monetary limits for filing appeals before the Tribunal to the pending appeals.

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 Appellant: Ms. Sweety Kothari, CA
For Respondent: Ms. Nidhi Srivastava, CIT,DR
Hearing: 26.08.2019Pronounced: 26.08.2019

PER SUCHITRA KAMBLE, J.M. These appeals are filed by the department against separate orders dated 31.12.2015 passed by the Commissioner of Income Tax (Appeals)-29, New Delhi for assessment year 2009-10, 2010- 11 and 2011-12 respectively .

2.

At the outset, it was brought to our notice that the tax effect involved in these appeals being less than Rs. 50 lacs, squarely falls within the ambit of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue and subsequent clarification issued by CBDT on 20th August, 2019.

3.

After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We find that the subsequent clarification dated 20.08.2019 makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. The Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserve to be dismissed on account of low tax effect vide Circular No. 17/2019 dated 08.08.2019 and subsequent clarification on 20.08.2019. Accordingly, on account of low tax effect case, we dismiss these appeals of revenue in limine, without going into the merits of the case.

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