ACIT, GURGAON vs. M/S. BAIN & COMPANY INDIA PVT. LTD., GURGAON

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ITA 3435/DEL/2016Status: DisposedITAT Delhi16 December 2019AY 2010-114 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 Departmental appeal was not maintainable due to CBDT circulars setting monetary limits for appeals. The appeal was dismissed on this technical ground.

What were the facts?

The Revenue filed an appeal against the deletion of a transfer pricing adjustment related to royalty payments. The tax effect of the appeal was less than Rs. 50 lakhs.

What were the issues?

Whether the Departmental appeal is maintainable before the Tribunal given the tax effect and the prevailing CBDT circulars on 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 “I-1” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI B.R.R. KUMAR

Hearing: 16.12.2019Pronounced: 16.12.2019

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-1, Gurgaon, Dated 31.03.2016, for the A.Y. 2010-2011, challenging the deletion of addition of Rs.1,35,91,144/- made by the A.O. on account of transfer pricing adjustment regarding payment of royalty.

2 ITA.No.3435/Del./2016 M/s. Bain & Company India Private Limited, Gurgaon.

2.

Admittedly, the tax effect in the Departmental Appeal is less than Rs.50 lakhs. Vide Circular No.3/2018 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 the Tribunal. Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department.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 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

3 ITA.No.3435/Del./2016 M/s. Bain & Company India Private Limited, Gurgaon. Circular No.3/2018 (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 Circulars. In the 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.

Sd/- Sd/- (B.R.R. KUMAR) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi, Dated 16th December, 2019 VBP/-

4 ITA.No.3435/Del./2016 M/s. Bain & Company India Private Limited, Gurgaon.

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