DCIT, NEW DELHI vs. M/S. MINDA INVESTMENT LTD., DELHI

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ITA 2593/DEL/2017Status: DisposedITAT Delhi10 July 2019AY 2007-082 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 departmental appeal was not maintainable as the tax effect was less than the monetary limit prescribed by CBDT Circular No. 03/2018. The Ld. DR could not provide any exceptions to this circular.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 50,00,000/- made under Section 68. The assessee had allegedly failed to discharge its initial onus regarding the creditworthiness of lenders.

What were the issues?

Whether the departmental appeal is maintainable before the ITAT given the tax effect below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES ‘E’, NEW DELHI

Before: Sh. Bhavnesh SainiDr. B. R. R. Kumar

For Respondent: Ms. Rinku Singh, Sr. DR
Hearing: 10.07.2019Pronounced: 10.07.2019

ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the Revenue against the order of the Ld. CIT(A)-6, Delhi dated 03.02.2017.

2.

The Revenue has raised the following effective grounds: “1. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of Rs.50,00,000/- u/s 68 of the Income Tax Act, 1961 (the Act) even when the assessee had failed to discharge its initial onus to prove creditworthiness of lenders u/s 68 of the Act before the Assessing Officer(the AO) ?”

3.

According to Circular No. 03/2018 dated 11/07/2018, the CBDT in supersession of earlier instructions has directed that department’s appeals before ITAT shall not be filed in cases where the tax effect does not exceed the monetary limit of Rs. 20 lacs. The tax will not include any interest thereon. It is further clarified that if in the case of an assessee, disputed 2 Minda Investment Ltd. issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of disputed issues exceeds the monetary limit so specified.

4.

Admittedly, in the departmental appeal, the tax effect is less than Rs. 20 lacs, therefore, departmental appeal is not maintainable. The Ld. DR could not bring to our notice any exceptions mentioned in the said Circular.

5.

In the result, the appeal of the Revenue is dismissed. (Order pronounced in the open Court on 10.07.2019)

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