DCIT,, NEW DELHI vs M/S KDDL LTD.,, CHANDIGARH

Income Tax Appellate Tribunal, DELHI BENCH “Friday”: NEW DELHI

Before: SHRI R.K.PANDA & SHRI SUDHANSHU SRIVASTAVA

For Appellant: Shri Ramit Katyal, CA

For Respondent: Shri Subhakanta Sahu, Sr. DR, Shri Ramit Katyal, CA

Hearing: 08/11/2019

This miscellaneous application is preferred by the department. It has been pleaded by the department that in , the appeal of the department was dismissed as being below the tax effect. It has been submitted that in view of circular No. 3/2018 dated 11.7.2018 appeals having tax effect of less than Rs. 20 lacs were to be not pressed by the department but in the present appeal the tax effect was Rs. 20,05,930/- and, therefore, the department’s appeal should not have been dismissed.

Having gone through the records and in view of the CBDT Circular No. 3/2018, we are in agreement with the Ld. Sr. DR that the appeal of the department should not have been dismissed in liminee. as being below the prescribed tax limit for filing of Departmental appeals before this Tribunal. Accordingly, we recall the order dated 27.08.2018 and now proceed to dispose of the appeal.

Admittedly, the tax effect in this appeal is less than Rs. 50 lacs and, therefore, in view of the latest CBDT Circular No.17/2019 dated 8th August, 2019, raising the monetary limit for filing of the appeal by the Revenue before the Tribunal to Rs.50 lakhs and the subsequent clarification of the CBDT, vide Notification dated 20th August, 2019 stating that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable.

The Ld. Sr. DR accepts that the tax effect involved in the grounds raised by the Revenue being below Rs. 50 lakhs, the appeal filed by the Revenue squarely falls within the ambit of the recent

MA No. 19/Del/2 DCIT vs M/s KDDL Ltd.

DCIT,, NEW DELHI vs. M/S KDDL LTD.,, CHANDIGARH