DCIT, NEW DELHI vs. M/S. METALSA INDIA PVT. LTD., NEW DELHI

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ITA 2456/DEL/2017Status: DisposedITAT Delhi08 July 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 held that the Department should not file appeals where the tax effect does not exceed Rs. 20 lakhs, as per CBDT Circular No. 3/2018. The Revenue's appeal was not pressed.

What were the facts?

The Revenue filed an appeal against the cancellation of penalty under section 271(1)(c) of the IT Act. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect and CBDT circular instructions.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “E”: DELHI

Before: SHRI BHAVNESH SAINI & SHRI B.R.R. KUMAR

Hearing: 08.07.2019Pronounced: 08.07.2019

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-6, Delhi, Dated 07.02.2017, for the A.Y. 2011-2012, challenging the cancellation of penalty under section 271(1)(c) of the I.T. Act, 1961 in a sum of Rs.16,22,250./-.

2 ITA.No.2456/Del./2017 M/s. Metalsa India Pvt. Ltd., New Delhi.

2.

Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018Dated 11th July, 2018 issued by CBDT, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in Tribunals. Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. D.R. in view of the Board’s Circular above did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.

3.

In the result, appeal of the Department is dismissed.

3 ITA.No.2456/Del./2017 M/s. Metalsa India Pvt. Ltd., New Delhi. Order pronounced in the open Court.

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