DCIT, NEW DELHI vs. M/S. MENLO WORLDWIDE FORWARDING INDIA PVT. LTD., NEW DELHI

[A]. This appeal has been filed by Revenue against the order dated 19.09.2014 passed by Learned Commissioner of Income Tax(Appeals)-IX, New Delhi [in short, “Ld.CIT(A)”] pertaining to assessment year 2007-08. In this appeal, the tax effect is less than the monetary limit fixed by the Central Board of Direct Taxes (in short “CBDT”) in its Circular No.17/2009 dated 08.08.2019. The Revenue has raised following grounds of appeal:- i. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 68,43,884/- on account of long term capital gain and treated the same as STCL amounting to Rs. 1022451/- ignoring the fact that the AO has noted

ITA No: - 6680/Del/2014 in assessment order that the sale was slump sale and is eligible for long term capital gain. ii. That the order of the Ld. CIT(A) is erroneous and is not tenable on facts and in law. iii. That the grounds of appeal are without prejudice to each other.

B]. At the outset, it was brought to the notice by learned Authorized Representative of the Assessee, at the time of hearing that tax effect in this appeal is below Rs. 50,00,000./-. Vide recent CBDT Circular No.17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal ("ITAT", for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. Therefore, in view of the foregoing, we are of the view that this appeal filed by Revenue is not maintainable. The learned Departmental Representative also did not press the appeal. Accordingly, this appeal is dismissed being not pressed, and also not maintainable, having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.

ITA No: - 6680/Del/2014 [C]. Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of the appeal if it is found that this appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

[D]. In the result, the appeal by Revenue is dismissed. Our decision was orally pronounced in the Open Court after conclusion of hearing on the date of hearing. Now, this written order is pronounced in Open Court on 04.12.2019.