ITO, NEW DELHI vs. M/S. NEURAL DEVELOPERS (P) LTD., NEW DELHI

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ITA 5917/DEL/2016Status: DisposedITAT Delhi10 December 2019AY 2011-122 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 ITAT held that the appeal of the Revenue deserved to be dismissed due to low tax effect. This was in accordance with CBDT Circular No. 17/2019 and its subsequent clarification, which made the revised monetary limits applicable retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT) against an order of the Commissioner of Income Tax (Appeals). The appeal was for Assessment Year 2011-12.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed in limine due to low tax effect, as per CBDT circulars.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SH. N. K. BILLAIYA & MS SUCHITRA KAMBLE

For Appellant: Ms. Rakhi Vimal, Sr. D.R
Hearing: 10.12.2019Pronounced: 10.12.2019

PER SUCHITRA KAMBLE, JM

1.

This appeal is filed by the Revenue against the order of the Commissioner of Income Tax [Appeals]-2, New Delhi dated 28.07.2016 for Assessment Year 2011-12.

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 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 dismissed this appeal of revenue in limine, without going into the merits of the case.

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