DCIT, CIRCLE- 1, LTU, NEW DELHI vs. MAX LIFE INSURANCE COMPANY LTD., GURGAON

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ITA 1301/DEL/2019Status: DisposedITAT Delhi28 August 2019AY 2010-113 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 falls within the ambit of CBDT Circular No. 17/2019 regarding the tax effect for preferring appeals. The circular and its subsequent clarification apply retrospectively to pending appeals.

What were the facts?

The Department filed an appeal before the ITAT against an order of the CIT(A) for AY 2010-11. The tax effect involved in the appeal was below Rs. 50 lacs.

What were the issues?

Whether the Department's appeal is maintainable before the Tribunal given the low tax effect, considering CBDT Circular No. 17/2019.

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. Naina Soin Kapil, Sr.DR
Hearing: 23.08.2019Pronounced: 28.08.2019

PER SUCHITRA KAMBLE, J.M. This appeal is filed by the department against separate order dated 30.11.2018 passed by the Commissioner of Income Tax (Appeals)-22, New Delhi for assessment year 2010-11.

2.

At the outset, it was brought to our notice that the tax effect involved in this appeal 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

1.

(M/s. Max Life Insurance Co. Ltd.) 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 this appeal of revenue in limine, without going into the merits of the case.

4.

In the result, appeal of the revenue is dismissed. Order pronounced in the open court on 28.08.2019

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