What did the Tribunal hold?

The Tribunal held that in view of CBDT Circular No. 17/2019, which enhanced the monetary limit for filing appeals to Rs. 50 lakhs, the Revenue's appeal was not maintainable. This circular was clarified to apply to all pending appeals.

The Revenue filed an appeal against an order for Assessment Year 2009-10. The assessee pointed out that the tax effect on the disputed issue was below Rs. 50 lakhs.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to the tax effect being below the revised monetary limit prescribed by CBDT circulars.

ACIT vs M/S. Rbrl Agro Commodities Ltd… | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCH “F” NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI ANADEE NATH MISSHRA

For Appellant: Smt. Sulekha Verma, CIT-D.R

For Respondent: Shri Somil Agarwal, Adv

O R D E R PER AMIT SHUKLA, JM

The aforesaid appeal has been filed by the Revenue against the impugned order dated 19.10.2016 passed by Commissioner of Income Tax (Appeals)-XXVIII, New Delhi for the Assessment Year 2009-10.

At the outset, it has been pointed out by the ld. counsel for the assessee that the tax effect on the disputed issue raised in the Revenue’s Appeal is much below Rs.50 lac, and therefore, in view of new CBDT Circular No.17/2019, the appeal of the Revenue is not maintainable. Ld. DR did not dispute that tax effect on the disputed issue is less than Rs.50 lac.

In view of the CBDT Circular No.17/2019 dated 8th August, 2019, wherein the CBDT has further enhanced the monetary limit for filing of appeal by the Department before the Income Tax Appellate Tribunal from Rs.20 lacs to Rs.50 lacs. The said circular also make reference to the earlier Circular No.3 of 2018 dated 11.07.2018 and specially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. This circular is not in supersession of the earlier circular but only amends the monetary limits as well as gives clarification with regard to paragraph 5 of the earlier circular. This inter alia means that all the other conditions mentioned in the earlier Circular No.3 of 2018 dated 11.07.2018 will apply mutatis mutandis including that is, it will apply to all the pending appeals.

Further CBDT vide clarification dated 20.08.2019 has clarified that the aforesaid circular will apply to all pending appeals. Accordingly, the appeal of the Revenue is dismissed as non maintainable as the tax effect is below Rs.50 lakhs.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 10th December, 2019.

ACIT, NEW DELHI vs. M/S. RBRL AGRO COMMODITIES LTD., NEW DELHI

What did the Tribunal hold?

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