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

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ITA 3677/DEL/2017Status: DisposedITAT Delhi29 November 2019AY 2011-123 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 recalled its earlier order and agreed that the appeal should not have been dismissed in limine. However, considering a later CBDT circular that raised the monetary limit for appeals to Rs. 50 lakhs, the Tribunal held that the current appeal was not maintainable.

What were the facts?

The department filed an appeal which was initially dismissed as being below the tax effect limit. The department filed a miscellaneous application arguing that the tax effect was just above the previous limit and should not have been dismissed.

What were the issues?

Whether the departmental appeal was maintainable given the tax effect and subsequent CBDT circulars regarding monetary limits for appeals.

AI-generated summary — verify with the full judgment below

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

Heard together (2 matters)

MA No. 19/Del/2019
ITA No. 3677/Del/2017

Read from the judgment's own cause title. This page is filed under one of them.

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.

2.

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.

3.

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.

4.

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.

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