DCIT, NEW DELHI vs. M/S. SUPER BELTS PVT. LTD., NEW DELHI

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ITA 1806/DEL/2015Status: DisposedITAT Delhi11 November 2019AY 2007-083 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 held that the appeal of the Revenue deserved to be dismissed on account of low tax effect, as per CBDT Circular No. 17/2019 and its subsequent clarification. The appeal was dismissed in limine without going into the merits of the case.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order for Assessment Year 2007-08. The tax effect involved in the appeal was below the monetary limit prescribed by CBDT Circular No. 17/2019.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to low tax effect, based on the prevailing CBDT circulars regarding monetary limits for filing appeals.

AI-generated summary — verify with the full judgment below

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

Before: SHRIR. K. PANDA & SHRI K. NARASIMHA CHARY

For Appellant: Ms. Pramita M. Biswas, CIT-D.R, Shri Ajay Bhagwani, C.A
Hearing: 11.11.2019

PER K. NARSIMHA CHARY–JUDICIAL MEMBER:

1.

This appeal is filed by the Revenue against the order of the Commissioner of Income Tax [Appeals]-XXX, New Delhi dated 29.12.2014 for Assessment 2007-08.

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 - 2 - DCIT vs. Super Belts Pvt. Ltd. Asst.Year–2007-08 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 dismiss this appeal of revenue in limine, without going into the merits of the case.

4.

We would further add that certain times instances stated in para No. 10 of the CBDT Circular No. 3/2018 dated 11.07.2018 is not discernable from the assessment and appellate orders, therefore, in such cases, we also give liberty to revenue that if such instances comes to their notice than, revenue may file miscellaneous application with such evidences.

- 3 - DCIT vs. Super Belts Pvt. Ltd. Asst.Year–2007-08

5.

In the result, appeal of the revenue is dismissed. This Order pronounced in Open Court on this the 11th day of November, 2019.

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