ITO, NEW DELHI vs. M/S. NEW VIDEO PVT. LTD., NEW DELHI

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ITA 409/DEL/2017Status: DisposedITAT Delhi08 July 2019AY 2006-073 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 dismissed the appeal filed by the Revenue. This was based on a CBDT circular directing that appeals with a tax effect below Rs. 20 lakhs should not be filed or pressed.

What were the facts?

The Revenue filed an appeal against the deletion of an addition made by the Assessing Officer. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the low tax effect as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 36(1)(vii)

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 02.11.2016, for the A.Y. 2006-2007, challenging the deletion of addition of Rs.47,09,114/- under section 36(1)(vii) of the I.T. Act, 1961.

2 ITA.No.409/Del./2017 New Video 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 Pending appeals below the specified tax limit may be withdrawn/not pressed.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.409/Del./2017 New Video Pvt. Ltd., New Delhi. Order pronounced in the open Court.

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